AUTO INSURANCE

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Vehicle Insurance is the Insurance purchased for trucks, cars and other vehicles. The Primary use of this insurance is to provide financial protection against the physical damage which the car may sustain due to the traffic collusion. Vehicle Insurance also provide protection against the theft of the vehicle and also possible damage to the vehicle which is sustained as a result of perils other than traffic collisions.

After the World War 1 the wide spread use of the Auto mobiles began. Cars were pretty fast and dangerous at that stage but still there was nothing like Car Insurance any where in the world. Gradually as the speed of the cars Increased the chances of accidents and the number of accidents increased. As there was no compulsory insurance the injured victims couldn't get any compensation most of the times and the drivers had to incur huge cost for damage to their cars and property.

Due to the circumstances mentioned above there was an Urgent need for a compulsory Car Insurance. And hence The compulsory Car Insurance scheme was first launched in UK in the year 1930. As per this only the vehicles which were insured were allowed to be used on the Public Roads. The Govt of Germany passed a similar legislation in the year 1939 and this is how the concept of Car Insurance became popular across the world.

The regulations for Vehicle Insurance differ with each of the countries. Infact there are different regulations in different States of United States Of America. With Each State of USA having its own minimum Insurance requirements. All the States of USA require drivers to have Insurance for both the Bodily injury and property Damage. However the minimum amount of Insurance is different in different States and it is determined by the legislation of the respective states.

Now a days various companies around the world are providing car insurance and all those companies will be discussed later in detail.