Car insurance is one of the most popular types of insurances. It is mandatory for drivers almost everywhere in the world to possess car insurance. It is applicable to all kinds of vehicles and usually covers the physical damage caused to the vehicle due to an accident or other mishaps.

Car insurance also covers liability protection, which means that, if you or another person is injured in an accident, then the company will cover a part of the medical expense.

The earliest record of any type of insurance was first recorded in the ancient civilization of Babylon. The Code of Hammurabi set aside advance money known as �bottomry� for the security of a ship against marine dangers. The investors were protected from debt by paying a 20% premium in case of loss or damage to the cargo.

The origins of the concept of insurance can also be traced back to ancient Chinese ships. The cargo ships, which used to travel across the Atlantic Ocean to the colonies, would often get either drown or were attacked by pirates. Later, to protect their ships, some investors decided to insure the ship and the cargo by paying a premium amount. This is now known as marine investment. Car insurance was derived from this strategy.

Car insurance was developed after it was decided by policy makers that operating a motor vehicle on public property was a privilege. Hence, it was decided that car owners must buy insurance to protect innocent people against injury and damage to property.

A British company wrote the first car insurance policy that offered liability coverage in 1895. The first liability car insurance policy written in the United States took place in 1898 and it was written for Dr. Truman J. Martin.

The first mandatory car insurance law was introduced in Massachusetts in 1927. However, car insurance policies had come into existence much earlier. In fact, the policies started almost one hundred years before the introduction of the motor vehicles in the United States in 1908.

Nowadays, every state in the United States has a mandatory car insurance requirement. Although car insurance obligations different from state to state, they all require a minimum of liability coverage to protect victims from injury.

Car insurance is a necessity. Should you ever be involved in a car accident, it can save you thousands of dollars. The insurance plan is easy on the budget, as most insurance companies offer monthly payment plans.