Who made car insurace a mandatory law in the 45 states?

Question

Does anyone know the origins of this law, who passed it, who even came up with it?

Answer 1

The insurance companies, of course. Since auto insurance is mandated here (Michigan) then the state should be the insurer. Insurance is a product, no different than a hammer purchased at a hardware. Yet the hardware lobby apparently isn't strong enough to get government here to mandate hammer purchases. Mandatory auto insurance is nothing but a scam by insurance companies to force us to buy their product at inflated prices (profit!). Our legislature was bought off mainly by Farm Bureau, which owns most of our elected officials. So your answer is, lobbyists buying off state representatives is why we are forced to buy something that we don't want.

Answer 2

Insurance is regulated at the state level. There is no one law that made it mandatory in all states. Each state had to enact it's own laws.

Most states don't require insurance. They require financial responsibility. The law is frequently known as the "Financial Responsibility Law". The law requires that each driver be able to pay a minimum amount for bodily injury and property damage that you cause other people. If you have sufficient resources, you can file a bond with your state and pay a fee and driver without insurance. In Essene, you self insure. However, most people can not afford to do that. And the ones who can, want the protection from law suits that an insurance policy provides. So most people meet their obligation under the financial responsibility law by purchasing car insurance.

Homeowners insurance is not required by law.

Answer 3

Insurance is just one way to protect the "common man (or woman)" from financial disaster.

The State legislatures in the various States have to enact the various laws required to have mandatory insurance in each State. Each State is a little different, as they all have different minimum limit requirements and various other requirements, such as carry the ID Card at all time, not carry the ID, only need to show proof at the time of an accident, show it at time of re-registration and inspection.

Although it IS a requirement, about 20-25% of the drivers on the streets do NOT carry it for one reason or another (and this number varies by State - some higher, some lower.) You have some that will NEVER buy it until caught without it and forced to buy, you have some that will buy it and then as soon as some other financial crisis comes along they will cancelm and you have some that wouldn't leave home without it.

Good luck and I hope this helps!

Answer 4

Car insurance was actually started in England in 1895.

The first policy written in America took place three years later.

Massachusetts was the first state to require insurance (1927) and pretty much every other state followed suite. If you think its a bad idea - get into a wreck in Eastern Europe and find out what happens without insurance.

Answer 5

Too many people accept that mandatory car insurance is a fact of life in the United States. Beginning with Massachusetts in 1927 and appearing in most other states by 1970, compulsory car insurance has been foisted, in the most coercive sense of the word. Exorbitant sums of money are spent on coverage that most people never need. This has sparked claims that exist to this day that auto insurance is a scam perpetrated on the public, and that lawmakers have been bought by the insurance cartels.
Pay and pay without incident

Let’s say that a named insured pays an $500 annual premium for the “privilege” of mandatory car insurance. That’s $5,000 over 10 years, which is worthwhile if the insured is ever involved in a serious accident with leads to personal injury and/or severe property damage. However, various actuarial data studies indicate that on average, most drivers go 20 to 30 years without any at-fault accidents that require their automotive insurance to pay out.

Over 30 years, that’s $15,000 down the drain, money that could go toward more worthwhile investments like retirement savings, stock investments and college funds for children. Imagine losing a college education in a black hole. That’s what mandatory car insurance has been called by critics – as well as a scam.
But wait, auto insurance is necessary risk protection

Supporters of auto insurance claim that it is a financial tool that protects against catastrophe. Much like health insurance, when your aren’t in trouble, you don’t need the coverage, but when you are in trouble, you’re thankful you have it. Some of the ways automotive insurance protects the insured, according to any insurer out there:

Safeguarding the investment the insured has made in their car
Paying for accident-related medical bills
Shielding against personal liability for property damage
Protecting assets against seizure
Protecting against other uninsured or under-insured motorists
Protecting against costs associated with theft and vandalism, or natural disaster
Providing peace of mind

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No direct, specifically quantifiable impact of going without

It is theoretically possible to drive without automotive insurance and harm nobody, yourself included. Provided you’re never pulled over by a police officer, you’ll never have to provide proof of automotive insurance. Provided you’re never involved in an accident, either, you’ll never need insurance.

But what about the risk involved in allowing people to drive sans automotive insurance? It could be a valid point, but should theoretical risk that an individual might damage someone’s property or person impose obligation on everyone? Is there a direct, specific negative impact on others when one driver hits the road without insurance?

No, there isn’t. Yet Americans continue to pay because they are forced to do business with a cartel. If car insurance were optional, insurers couldn’t shake down consumers so easily with high surcharges over speeding tickets. As it is considered mandatory, however, consumers have no leverage. And since mandatory car insurance became the norm over the past 20 to 25 years, premiums have soared.
At liberty to choose

Individuals in a free society should, barring definite harm posed to others, be allowed to choose what is best for them. Basing a major financial obligation on the potential that something may happen should be unthinkable in such a society. When premiums were not cut in half in the 1970s when car insurance in the U.S. became mandatory, nobody should have been surprised. And like mindless sheeple, we continue to accept being raped financially.

Answer 6

I DON'T REALLY KNOW BUT I DO KNOW THAT THE ROMANS HAD A SIMILAR TYPE OF INSURANCE.