Vehicle insurance, which is also referred to as auto insurance, motor insurance or car insurance, is insurance for vehicles like cars, motorcycles, trucks, buses etc. The main & primary use of this type of insurance is to provide the policy holder a financial protection against any physical damage to the vehicle.
In addition to that vehicle insurance may additionally provide financial protection against the damage done from stationary objects. Also, the insurance may cover or provide protection against theft. One can also choose Ken Smalley Insurance Agency to protect your family and assets.
If we check the history, the usage of vehicle/automobiles became widespread after the First World War. Cars were introduced at that time which was a relatively faster & thus a dangerous vehicle too. But there was no compulsory form of car insurance.
Due to this the victims of the accidents had to pay considerable costs for the damage done to their vehicle.
The first compulsory car insurance scheme was introduced with the Road Traffic Act 1930. This act stated & ensured that on a public road, all the owners/ drivers of the vehicles had to be insured for the liability for death or injury to the third parties.
These days, most of the jurisdictions have made it compulsory that if a vehicle is being used on a public road, driver/owner should have vehicle insurance before and while using and keeping a motor vehicle.
Some of the jurisdictions are experimenting with a pay-as- you-drive insurance plan which is paid through gasoline tax (petrol tax). This will result in better efficiency of the insurance.