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When Did Car Insurance Become Mandatory?
April 9, 2016
"When did car insurance become mandatory?" Technically, Auto Insurance first became mandatory in Massachusetts in 1927. The Bay State was the first to make an insurance certificate mandatory at the time of vehicle registration. Prior to Massachusetts however, Connecticut enacted the Connecticut Public Acts, Chapter 183 in 1925. [1] The Connecticut law required motorists to demonstrate "financial responsibility" (insurance as Continue Reading
"When did car insurance become mandatory?"
Technically, Auto Insurance first became mandatory in Massachusetts in 1927. The Bay State was the first to make an insurance certificate mandatory at the time of vehicle registration.
Prior to Massachusetts however, Connecticut enacted the Connecticut Public Acts, Chapter 183 in 1925. [1] The Connecticut law required motorists to demonstrate "financial responsibility" (insurance as one remedy) following an accident of $100 or more in damages.
The Connecticut law allowed multiple ways that people could prove Financial Responsibility including:
Following an accident in Connecticut, if a driver was unable to comply, they would be forced to forfeit their driver's license. It wasn't long before people decided that preparing for an incident before it happened, was a better form of transferring risk than taking full responsibility following an occurrence.
In 1925, Massachusetts enacted the Compulsory Automobile Liability Security Act C. 346 [2] . The Massachusetts law was more stringent, specifically requiring "bodily injury liability insurance with limits of $5,000/occurrence, $10,000/accident.
From 1925 to 1956 Massachusetts was the only state that specifically required auto insurance followed by New York in 1956 and North Carolina in 1957 .
Forty Nine states plus the District of Columbia had compulsory auto insurance by 2010 with New Hampshire the lone state without that requirement. New Hampshire still enjoys a "Live Free or Die" attitude towards auto insurance. As of this writing SR-22 (or certificate of insurance) is only required following a motorists conviction of certain severe auto infractions.
Interesting stuff!
Footnotes
Originally Published by Jeff Ryan at Quora.com
https://www.quora.com/When-did-car-insurance-become-mandatory
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The year 1962 was marked by historic events—from the Cuban Missile Crisis to the passing of Marilyn Monroe. But while the world focused on these headlines, Lee A. Ryan was working alongside his brothers on my grandparents' farm when an unexpected opportunity arose—an invitation to join the insurance business. With no prior experience, no clients, and limited resources, my dad took a leap of faith and partnered with Nationwide Insurance to start an agency from scratch. Operating out of his home on Karr Valley Road in Almond, NY, he built his business one relationship at a time (some of whom are still clients!), laying the foundation for what would become a lasting legacy.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
