Over the years, auto insurance has made a significant increase in their policies as well as the demand for people to have coverage for their cars. According to the U.S. General Accounting Office, the first record of auto insurance dated back to 1898, made for a physician and his automobile. Later, in 1927, Massachusetts made their first mandatory law of auto insurance for drivers within the state. After the “birth” of auto insurance in Massachusetts, most states followed and progressively increase the demand for auto insurance. Now, if a citizen “owns a vehicle with at least four wheels… [he/she] must have Florida insurance.” If in a case where a driver does not have a Florida licensed auto insurance, the Department of Highway Safety and Motor Vehicles has the authorization to “suspend your driving privilege, including your vehicle license plate and registration, for up to three years or until proof of Florida insurance is provided” (Florida Highway Safety and Motor Vehicles). Florida Highway Safety and Motor Vehicles also demands the drivers to have auto insurance for any and all vehicles, whether it is being use or just stationary. Should a driver from out of state rent a car to be use during their stay in Florida pass 90 days, they are still required to have a form of auto insurance (any kind of auto insurance form).

Over the century, cars have made their way into everyone’s daily life as not just an object or a mode of transportation, but also as a member of the family. When someone buys a car, typically a used car can cost up to twenty thousand dollars or more and a brand new car can cost up to forty thousand dollars or more. With the amount of money that goes into buying a car, we can see why some people would treat that car as a prized possession. Auto insurance service is the life protection for cars. In the view of people having life insurances, auto insurance is the equivalent for cars. As mentioned, people have begun to treat cars as a family member, some people have even gone to the extent of naming of their cars and have grown attach to them. Now, cars have become such a big part of most people’s daily lives, so the government has issued a law that those with car(s) are required to have insurance for their cars. The aim of the auto insurance policy is so that everyone would be safer and if in a scenario of an accident, the cost of the car’s damage would mitigate. With the use of auto insurance, the cost of the car’s damages can be cut and minimize the money involved in the accident. Since the first successful invention of cars, thousands of companies have invested in building cars and selling them. Due to the increase in car development, along with the extreme high demand for cars, companies have also invested in a ways to protect the cars, not just the people who drive them.   

Auto insurance does not only work to aid in the lessening of costs in big car accidents, but also to settle minor disputes in little accidents that could happen anytime. For instance, there are four cars in my household, and even though we can park in the garage and the drive way, sometimes it is just not enough. When there is not enough space in the garage or the driveway, sometimes we have to result in parking on the street where there is a potential increase in other cars hitting my parked car. If in a scenario where the accident does happen, without auto insurance, the cost to fix the damage of the car would have to be paid out of the driver’s pocket. In a more severe accident where a car can crash into another car and injure someone, the auto insurance (liability coverage) would aid in paying for the treatment of those that were injured. Let’s assume for a minute that the driver does not have auto insurance and has crashed into another car. Even in the best case where nobody was injured, the cost of the repairs for the cars would have to be paid by the driver himself/herself. Most car repairs after an accident can range in the thousands ($10,000-$15,000), almost as much as buying a used car. However, if there are injured people due to the accident, the cost for medical bill, rehabilitation, and so on increases and the driver that caused the accident would have to pay far more, exceeding the amount of simply repairing the damaged cars.  

Every year, thousands of people get into car accidents. Personally, I have never gotten in accident; however, that does not guarantee that I will never get into one. Every people drive in their own way, some drive carefully while others drive terribly. There are those that drive while texting, while intoxicated, while eating, and so on, so there is never a sure guarantee of being safe when driving on the road. With one accident on the road, a person’s life can change forever. For example, they could experience brain injury, a coma, disabilities, and so on. In some cases, they could even die. There are still other damages in a car accident that can ruin a person’s life. With the high increase in reckless driving and car accidents, the government has taken a severe consideration into the demand for auto insurance. No matter the forms of auto insurance, everyone that drives must have some kind of insurance when on the road. Although most people do not see the need to have auto insurance, it is required by laws that every driver must be in possession of one. Therefore, most drivers only get the bare minimum insurance, such as the lowest insurance cost with no protection plan, no over cost on hospital pay, and so on. It can be said that most people that get into car accidents do not typically have insurance due to the negligence of getting one for precaution. Auto insurance does not appear to be important in a situation where there is no accident and it could mean little to careful drivers; however, auto insurance can be a life line for those that do happen to get into accidents due to reckless driving or unforeseen circumstances.

           

References:

Billington, James H. " Who Invented the Automobile?" Who Invented the Automobile? (Everyday Mysteries: Fun Science Facts from the Library of Congress). The Library of Congress, 29 Jan. 2011. Web. 12 Jan. 2014. <http://www.loc.gov/rr/scitech/mysteries/auto.html>.

Eugene. "Your Personal Financial Mentor." Your Personal Financial Mentor. Your PErsonal         Financial Mentor, 25 Aug. 2013. Web. 13 Jan. 2014. <http://kscripts.com/insurance/understanding-the-importance-of-auto-insurance.html>.

Jones, Julie L. "Official Website Florida Department of Highway Safety and Motor Vehicles."     Official Website Florida Department of Highway Safety and Motor Vehicles. Florida Highway Safety and Motor Vehicles, 2009. Web. 13 Jan. 2014.    <http://www.flhsmv.gov/ddl/frfaqgen.html>. 

Ohman, Joel. "When Did Car Insurance Become Mandatory?" Car Insurance Comparison. 360  

Quote LLC, 2014. Web. 13 Jan. 2014. http://www.carinsurancecomparison.com/when- did-car-insurance- become-mandatory/