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Insurance has been part of society since the ancient times. It first appeared with the Babylonian traders early in the 2nd Millennium BCE, and again with the Ancient Chinese. car insurance was first used by Great Britain early in the 19th Century. Today auto insurance is one of the prerequisites before one can register his car. However, there are mandatory car insurance which are available in the market but there are also insurance which are not mandatory, but are extremely helpful for the car owner for the protection of his property and for indemnification by reason of damage to person caused by car accidents. It is best though to study the law of the state or country in which you are a resident as insurance laws differ from one state or country. But most countries today have a clear mandatory law on insurance as to protect both the driver and the pedestrian.