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The evolution of car insurance: From first policy to modern telematics

Gilbert J. Loomis purchased the first $5 auto insurance policy from Travelers Insurance Company in 1897 in Massachusetts.
This event followed the birth of auto insurance between the 1890s and 1920s and was shaped by early regulations like Connecticut's 1925 financial responsibility law.
Since then, car insurance evolved through package policies in 1950, no-fault plans in 1971 Massachusetts, and the 1990s telematics revolution introducing usage-based premiums.
Telematics allows premiums to be based on miles driven, driving behavior, and real-time data, with Tesla's 2019 insurance program promising discounts up to 60% for safer drivers.
The industry now faces challenges from AI, data privacy, and autonomous cars, requiring regulators to balance innovation with consumer protection in evolving insurance models.

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The evolution of car insurance: From first policy to modern telematics | News Channel 3-12

The evolution of car insurance: From first policy to modern telematics Car insurance didn’t always come standard with a set of keys. What started as a niche product in the early days of motoring has become a legal and financial necessity for nearly every U.S. driver. Over the past century, the industry has kept pace with America’s deepening car culture, shifting laws, and leaps in technology. In this article, CheapInsurance.com looks at how auto…

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