When were drives required to be insured? What events led to this desicion?

Answer 1

Drivers in the US are not required to have insurance specifically. They are required to show proof of financial responsibility.

The law that requires insurance is the Financial Responsibility law.

Eacg state requires drivers to be able to pay for bodily injury and property damage losses that are caused by their negligence up to a state minimum. If a driver is able to show that they have the financial resources to pay for losses up to the state minimum, they would be allowed to "self insure" themselves. Frequently they would have to file with the state and pay a fee.

Usually, most citizens do not have the ability to meet the financial responsibility requirements. So, they purchase insurance policies that provide coverage in accordance with the state minimum limit or higher.

It is not uncommon for businesses to self insure. Corporations are usually able to handle paying out of pocket for smaller losses and will self insure up to a certain point ( such as 25,000- 100,000)and will purchase an insurance policy to pick up after that point to handle catastrophic losses.

The purpose of financial responsibility losses is to insure that other drivers/property owners are compensated for damage and injuries for which others are negligent. As a previous poster said - its good public policy.

Answer 2

Do you mean when were drivers required to be insured? I'm guessing you mean to say: when were automobile drivers first required to get insurance?

The earliest record I could find of mandatory auto insurance (third party) is in the UK around 1930. Since US insurance is regulated on a state level, you'd have to ask that question 50 times. Why? good public policy.