When Was Car Insurance Created? 
The best answer that I was able to locate is fromaskdeb.com . Here it is : Car insurance polices actually evolved from maritime insurance hundreds of years earlier . The policies were to cover any losses and damages that might occur to property that was transported by ship . When the automobile was invented , these marine policies acted as a blueprint for car insurance . The first car insurance policy offered only liability coverage to protect any property that might be damaged by a motor vehicle . This first policy was written by an English insurance company back in 1895 . In the U.S. , the first liability car insurance policy was not written until 1898 and the first policy holder was a Dr. Truman J. Martin . It wasnt until 1927 that Massachusetts became the first state in the U.S. to pass the first mandatory insurance law . 