Every February 1st is a holiday observed as Car Insurance Day. Why would anyone celebrate a holiday dedicated to car insurance? Well, we don’t think it’s a holiday designed for people to celebrate car insurance.

We just can’t imagine people throwing car insurance-themed parties, dressing up like insurance policies, or singing the praises of insurance companies. We just don’t see that happening.

We think the purpose of this holiday is to alert people to the importance of owning a car insurance policy. Car insurance is something every driver needs to have, and in most areas, it is mandatory by law. We think this holiday simply reminds people of that fact.

The History Of Car Insurance Day

Insurance has been around for hundreds of years. In the mid-18th century, Benjamin Franklin formed the Philadelphia Contributionship — one of the first companies in the American colonies to provide fire insurance. Members of it would all make payments that would be used if any one member suffered a fire-related loss.

In its first year, the contributionship issued 143 seven-year policies. Of course, this was a bit before the time of the automobile; otherwise, Franklin probably would have invented that as well.

So who did issue the first car insurance policy? We’re not entirely sure, but we do know that Gilbert J. Loomis was one of the first people to buy an automotive liability insurance policy in 1897. This policy was issued in Dayton, Ohio, and protected Loomis if his car damaged property or injured or killed someone. From that moment on, many different companies began to issue car insurance, and over the decades, its importance would continue to grow.

Some Quick Facts About Car Insurance

We would be remiss in our treatment of this holiday if we didn’t take the time to learn more about car insurance and then share that information with our readers. With that said, below are some car insurance facts that we feel complement Car Insurance Day very well.

• A person’s credit can impact how much they pay for car insurance.
• Drivers should comparison shop once a year to ensure they’re getting the best car insurance rate.
• Insurance prices vary by state. Michigan and Rhode Island have some of the highest average monthly costs for car insurance.

Observing Car Insurance Day

The first thing that a person should do on this holiday is to take an honest assessment of their insurance needs and what their actual insurance needs are. All 50 states and Washington, D.C., require drivers to carry property damage liability, and most states require bodily injury liability insurance.

And over half of the U.S. states require uninsured/underinsured motorist insurance. Those are types of insurance that drivers must have, but there are also other types such as comprehensive that they might want to carry. Drivers can also let other people know about this holiday by using the hashtag #CarInsuranceDay on social media.