Background and history of auto insurance means a journey through time, starting in Europe in the nineteenth century and concludes today. In 1821, the Prefect of Paris had the idea of creating a common fund with contributions from the drivers, to address hypothetical third party damages and fines imposed on drivers of these carriages. The Prefect was unaware that laying the foundation stone of the current vehicle insurance.
A few years later and also in France, was created The Automedon . It was a company born to cover the liability of the drivers . It was founded in 1825 and its name came from Automedon charioteer Dioreo son of Achilles in Greek mythology.The institution enjoyed great prestige in its infancy. However, and in 1844, the Commercial Court issued a judgment of the Seine, which declared void all insurance on the use of carriages. The argument of the court, which may seem pilgrim today, understood that the fact of being insured drivers cause in lack of attention to their work.
The decision of the Court of Commerce of the Seine wiped Automotive and other insurers. However, the sentence was appealed and the Court of Cassation overturned years later.
Secure reappeared and expanded hard until the late nineteenth century, at which time another discovery revolutionized the world. In 1886, Karl Benz filed in the Patent Office in Berlin, the automobile. The German did not know it had invented the means to generate greater volume of insurance in the future. Gradually policies were adapted to the new transport system.
Over time, there were laws on car insurance. It was setting strict liability, as we know it today. In Spain, the regulation was immediate. In 1908 the first private insurance legislation was drafted, but did not enter into force until 1912.
Already in the fifties of the twentieth century, is created in our country Of auto(Automobile Insurers Bureau). It consisted of more than eighty companies and their function was to process the claims of Spanish abroad and assist foreign, green card, who suffered accidents in our country.
The Law on the Use and Circulation of Motor Vehicles was passed in the sixties of the last century and is the basis of all current Spanish legislation on matters today.This standard was the first to differentiate voluntary compulsory insurance.
In 2011 and only in Spain, auto insurance achieved a volume of premiums written of EUR 11,270 million, despite the severe economic crisis. That year they were insured nearly 29 million vehicles in our country. These figures could never have imagined Karl Benz or the Prefect of Paris, two of the names in capital letters in the history of insurance and automobiles.
