Short History

Widespread use of cars began after the First World War in urban areas. The cars were quick and relatively serious/dangerous at that stage, but there was no mandatory form of auto insurance anywhere in the world. This means that the injured victims will rarely get any compensation in an accident, drivers often face high costs for damage to the vehicle and property.

Introduction of compulsory insurance for the car system for the first time in the United Kingdom was with the traffic law on the roads in 1930. This ensures that all car owners and drivers had to be insured for liability for injury or death to third parties, while the vehicle is used on the public road. Germany has enacted similar legislation in 1939.