National Car Insurance Day

National Car Insurance Day is observed every Feb. 1, serving as a great time to review your auto insurance policy. Reevaluating your deductible amount, coverage limits and the types of coverage you may not need can help lower your car insurance premiums.

Read on to learn more about the history of car insurance and ways to keep your monthly costs down.

On This Page

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  What Is National Car Insurance Day?

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  National Car Insurance Day History

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  How To Celebrate National Car Insurance Day

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  Tips To Find a Car Insurance Policy That Fits Your Needs

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  FAQs

What Is National Car Insurance Day?

National Car Insurance Day is an annual observance that reminds drivers not only to drive safely and avoid costly accidents or traffic tickets, but also to ensure their coverage continues to meet their needs.^[1] Since 2020, car insurance premiums have risen by 55% on average, making ensuring you have the right coverage for a good price all the more important.^[2] By taking this time to review your coverage, you can lower these costs while still ensuring you have the right amount of insurance.

When Is National Car Insurance Day?

National Car Insurance Day is observed annually every Feb. 1.^[1] This gives policyholders a good opportunity to review their coverage options and decide whether to make any changes, such as increasing their coverage amount or dropping an optional coverage type.

National Car Insurance Day History

The origins of car insurance predate the Declaration of Independence, with founding father Benjamin Franklin launching a liability insurance initiative for fires in 1751. Despite the first car not being invented for another 100 years, Benjamin Franklin is typically credited with the concept that would eventually lead to auto insurance.^[1]

The first actual car insurance policy was issued in 1897, only 11 years after the patent for the first automobile was granted. The first policy was issued by Travelers, itself only a few decades old, to a mechanic out of Massachusetts, Gilbert J. Loomis. Costing only $7.50 for $1,000 of liability coverage, this policy helped protect Loomis from costs should his car get damaged or he kill anyone with the vehicle.^[1][3]

Soon after, the second policy was issued by Travelers to Truman J. Martin on Feb. 1, 1898 — marking the date on which National Car Insurance Day is recognized.^[1][3]

In the following decades, insurance options became more widespread, adding coverage against car fires and theft. However, it wasn’t until 1927 that the state of Massachusetts became the first to mandate a minimum amount of liability insurance for drivers.^[1] Over time, nearly every state and the District of Columbia would adopt its own compulsory minimum requirements for auto insurance.

How To Celebrate National Car Insurance Day

Below are a few ways you can observe National Car Insurance Day:

• Review your insurance policy: You should typically review it annually to ensure it meets your needs. Even if you have the minimum required coverage for your state, there may be optional coverage types you would benefit from. For example, full coverage can help cover physical damage to your vehicle from accidents or various perils, while roadside assistance could help cover the cost of a tow if you get a flat tire.
• Look for discounts: You may qualify for discounts with your insurance company that you're not aware of. For example, you could qualify for a good driver discount if you’ve kept a clean driving record for a certain period of time. Alternatively, you could bundle your auto and renters or homeowners insurance to help reduce costs.
• Change your deductible: You could consider raising or lowering your deductible based on your financial needs. Lowering your deductible would increase your monthly premium, but you would pay less out of pocket when making a claim. Alternatively, you could cut costs by raising your deductible, although you should be wary of doing so beyond your means of covering out-of-pocket expenses after an accident.
• Raise or lower your coverage: If you currently have only minimum car insurance, it may be worth raising your coverage. Serious accidents can be exceedingly costly, and minimum coverage may leave you with significant expenses. For example, causing a car accident that results in a disabling injury results in over $160,000 in liability costs on average, and if there's a fatality, costs reach almost $2 million on average.^[4]

Tips To Find a Car Insurance Policy That Fits Your Needs

When choosing a car insurance policy, you should first determine your needs. Each state has different liability coverage requirements, and some may also require additional policies, such as uninsured/underinsured or medical payments coverage. You should also review whether otherwise optional coverages, such as collision or comprehensive, are necessary.

These additional coverages may be required if you lease your vehicle, but they can also help protect you from high repair costs if your car is physically damaged.

One way to ensure you get great coverage at an affordable price is to shop around and compare prices across insurance companies. Try to gather quotes from three to five insurance companies to understand your options. You’ll typically need to provide information about your vehicle, such as the type of car and its mileage, as well as personal information, such as where you live and your driving history.

You’ll typically need to provide this information to each insurer individually, which can make the process overly tedious. Speed things up by using an insurance marketplace like SmartFinancial. After answering a brief questionnaire, we’ll connect you with a licensed insurance agent to help you get the coverage that fits your needs. Click here for free auto insurance quotes today!