The Beginning Of Vehicle Insurance

I love Downton Abbey. Somehow the drama of it all pulls me in on it.

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Did Mary get any monetary protection when Matthew died in a car crash?

Not that Mary needed any more money, but I often wondered if car/vehicle insurance existed by then. But it got me wondering when did we have to start paying car insurance?

Vehicle Insurance is a must have in the United States. You can purchase it for cars, trucks, motorcycles, and other road vehicles. Why buy vehicle insurance? Vehicle insurance provides monetary protection against physical damage or bodily injury that result from vehicle collisions. It protects against the liabilities that arise from these accidents.

Cars began to be used after the WWI in urban cities. Cars were being built to go faster and be more dangerous. When accidents happened, people were left on their own to cover the costs for injury and repairing damage. The UK introduced the Road Traffic Act 1930. The act stated all vehicle owners and drivers had to be insured whilst on a public road.

Additional provisions included:

  • Abolition of all speed limit for cars
  • Introduction of driving offenses including dangerous, reckless and careless driving under the influence of drink and drugs.
  • Compulsory 3rd party insurance
  • 1st UK driving tests, for disable drivers only
  • Classification of motor vehicles
  • Construction, weight, and equipment of motor vehicles
  • Issue of Highway Code

Another fun fact: The act actually removed all speed limits on UK roads for motor cars! Can you imagine not having speed limits!

Insure Daily

This act actually led Germany to enact similar legislation in 1939.

Other countries followed including:

  • Australia
  • Canada
  • Hungary
  • Indonesia
  • India
  • Ireland
  • New Zealand
  • Norway
  • Romania
  • South Africa
  • USA

How do companies determine premium charges? Companies use algorithms that factor in the following:

  • Gender
  • Age
  • Driving history
  • Marital status
  • Vehicle classification
  • Distance

Just wanted to share some interesting information about car insurance. Hope everyone is having a great weekend!



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