Did you know the first car liability insurance policy was sold in 1897 to Gilbert J. Loomis?

While Car Insurance Day may not sound like much, it has significance. Held February 1 every year, the date acts as a reminder to always drive safely and to ensure we review and update our insurance policies despite the type or brand of the car we drive. It also makes us value and appreciates money saved as it provides us with the financial protection we need in case of fire, theft, accidents, and more.



With over one trillion U.S. dollars in Insurance premiums as of 2020, the U.S. Insurance market is one of the largest in the world. It is leading the global insurance industry with the highest insurance company revenue, premium volumes, and number of employees. A good example is the largest global insurer MetLife whose headquarters are in New York, which made a total revenue of 30 billion dollars in 2020 alone from just U.S. business operations.



In 1751, the American founding father Benjamin Franklin-a volunteer firefighter with fellow firefighters and a leading intellectual through Philadelphia Contributionship initiated fire insurance as a service. The Philadelphia Contributionship was the first company among American colonies to provide fire insurance and is the oldest successful property insurance company in the nation. Because of this, Benjamin Franklin is credited as the founder of car insurance, even though vehicles were not invented then. 

Although the insurance idea was borrowed from Franklin, Car insurance was formed when Karl Benz invented the first car in 1886. At the time, car insurance was still an idea until the first automobile insurance policy was sold on October 20, 1897, to mechanic Gilbert J. Loomis of Westfield, Massachusetts, for the one-cylinder vehicle he built. Loomis bought the insurance in Dayton, Ohio, at $1,000.

The company offering the cover was called Travelers and was founded in 1864 in Hartford. At the time, Travelers offered Loomis protection in case of car damage or if he hurt or killed someone with his vehicle. The move was considered a genius as it revolutionized driving by incorporating training, licensing, and safety practices. Fast forwarding to the 19th century, the car insurance industry saw a major boost in 1927 when Massachusetts became the first state to order the mandatory purchase of auto liability insurance.


1. Did you know?
The patent of the Benz-Motorwagen was paid just $1,000 in 1885.

2. First automotive liability insurance policy.
The first automotive liability insurance policy was sold to Gilbert J. Loomis in 1897 for $1,000.

3. Lionel Messi is Insured for $900 million.
The Argentine football star insured his left foot for 900 million U.S. Dollars.

4. World's first automobile built.
In 1885, Karl Benz made history with his three-wheeled Motor Car dubbed, also known as Benz-Motorwagen. The car was powered by gas, and he applied for its patent on January 29, 1886.

5. World's most expensive car
With an average annual premium of $4,271, the Maserati Quattroporte is the world's most expensive car to insure.


Are you a small business operating in the Car Insurance business?

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BASA is the real deal, as it is prestigiously independent and was created with an unwavering love for small businesses. The award aims to showcase the best small businesses' notable efforts in growing and building economies, communities, and a better working world while encouraging more small businesses to get excited about new opportunities.

With over 150+ categories to choose from, the award is not influenced by big corporations and has no nepotism, vetting process, or big guys, always winning nature. The Best of America Small Business Awards’ independent council of judges only cares about one thing- your work!

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