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The first death due to an automobile in America took place in New York in 1896. It did not take long for people to realize that legal action based on ones fault in causing an accident could lead to significant expenditure. While auto insurance did not exist in 1896, the idea of paying a particular amount to protect oneself from unknown risk was an age old concept. Traders had been insuring their goods and ships that traveled over the seas even when there were only four or five major civilizations in the world. Hence, it did not take long for mankind to apply the idea of insurance to the world of automobiles.

The first insurance policy for an automobile was written by Travelers Insurance Company in Connecticut in 1898. The policy charged a premium of $11.25 and provided coverage up to $10,000. The policy holder was protected up to this amount as far as liability to those suffering from the mishap was concerned.

The auto revolution sparked by the mass production of Model T by Ford made the idea of auto insurance look very sensible in retrospect. With a significant proportion of the population owning cars and with more and more cars being sold on a daily basis, it was just a question of time before auto accidents became a huge problem. As car manufacturers made cars safer and as the government imposed safety regulations on car manufacturers, there was movement in the auto insurance sector as well.

Massachusetts became the first state in America to impose mandatory insurance for car in 1927. Even today, each and every person who owns a car is required to buy a specific amount of insurance coverage irrespective of whether he or she wants to or not.

The concept of getting a car insurance online policy is the latest change that has far reaching consequences. The auto insurance industry is becoming more democratic as even an ordinary car owner can make use of the web and sites like www.automotix.net to make informed decisions on profitable insurance deals.