16 Semi-Shocking Facts About Auto Insurance

Anything that's been around as long as auto insurance is sure to have a few interesting facts attached.

Auto insurance has been around for much longer than some of us ever imagined, and the first gasoline-powered American car was indeed one-of-a-kind. If you're a fan of trivial facts, you may enjoy these 16 bits of information about car insurance.

The 16 most interesting facts about car insurance

1. The first American car was built by Oliver Evans back in 1805. It was a truly unusual vehicle. Not only could the auto travel on land by wheels, but it could travel through water using paddlewheels.
2. The first auto insurance policy was issued in 1897.
3. Automobiles did not go into mass production until 1913. With the introduction of the moving assembly line, the time it took to build a vehicle dropped from more than 12 hours to one hour and 33 minutes. The innovation helped achieve Henry Ford's goal of building "motor car(s) for the great multitude."
4. Half of each insurance premium goes toward administrative costs rather than coverage. That may help explain why some auto insurers charge so much more than others.
5. It can hurt a driver's credit rating if they fail to cancel their previous auto insurance policy before switching to another insurance company.
6. Some cities and states still have laws on the book that make it illegal to drive barefoot.
7. Widowers are statistically more likely to get into an accident than married drivers.
8. Of all the insurance companies in the U.S., State Farm writes more auto insurance policies than any other. Fortunately, it typically ranks near the top of J.D. Power's customer satisfaction surveys.
9. As soon as people could compare auto insurance rates on the internet, rates began to decrease.
10. Of all auto insurance policies written, 22% are underwritten for high-risk drivers. We all may want to think about that the next time we're on the road.
11. Full-coverage car insurance costs less annually for married couples than for single drivers.
12. Although men are involved in more auto accidents than women, women are 37% to 73% more likely to be injured. There are two reasons behind this statistic: Women drivers are more likely to be hit than male drivers, and women tend to drive smaller, lighter vehicles.
13. The type of car you drive impacts how much you'll pay in premiums. That's because insurance companies look at things like how likely your vehicle is to be stolen, how large the engine is, the safety record of your specific vehicle, the cost of repairs, and the potential damage a vehicle like yours can impose on another car.
14. You can expect to pay a high premium for auto insurance when you buy a new car unless the vehicle has safety features like anti-lock brakes and an anti-theft system. If that's the case, you may score a lower premium.
15. Before offering you a quote, auto insurance companies check your credit score, driving record, and vehicle mileage. Depending on what you approved for them to check, they may find out even more about you.
16. If you've ever wondered why your credit score impacts your auto insurance rates, it's because researchers have found a correlation between credit scores and claims. The lower a person's credit score, the more likely that person is to make auto insurance claims. It doesn't seem fair, but insurers have counted on that research for years. One of the best ways to get your premiums down is to boost your credit score.

Make sure you have the best coverage you can find

Auto insurance is a necessity. The best any of us can do is keep our credit scores as high as possible, make as few auto claims as possible, and shop around for an insurance company that fits both our needs and monthly budget.