From the late nineteenth century onward, cars began to proliferate in industrialized nations. However, it was not until the invention of mass production by Henry Ford in the early twentieth century that a sharp increase in the number of cars on the road began to occur. This increased risk in two ways. First of all the mere increase in the number of automobiles caused a parallel increase in accidents in general. But it also led to an exponential increase in the number of collisions between cars.
Insurance was not a new concept. It had already existed for centuries. Since the automobile represented a new source of risk it was natural that motorists should find the need to protect themselves from devastating financial loss through insurance. Auto insurance became a legal requirement a short time later.
There are different types of auto insurance policies. They include collision, fire, theft, public liability and comprehensive. Many types of risk are not immediately apparent to the motorist, and we learn sometimes with surprise the types of things that can actually happen. For example it is not immediately apparent to the average driver why their car needs to be insured if they don't even drive it. Ask your insurance agent for a few stories of claims that have occurred where parked cars are concerned and you will soon find out why.
Getting the best auto insurance quote is very important and requires experience and understanding of the product one is buying. This is why it is treated in depth in another article. Insurance rates in the field of auto insurance vary widely. In theory, they are based solely upon the risk the you, the driver, present to the insurance company. Factors influencing the risk include your age, sex, driving record, where you live and the car you drive. In reality, two insurance companies may quote sharply different rates for the same driver and the same car.
