Vehicle insurance safeguards drivers against financial losses from collisions, liability, theft, vandalism, and natural disasters. Although cars became common after World War I, compulsory coverage only began with the UK's Road Traffic Act 1930, followed by Ireland (1933), Germany (1939), and a Europe-wide mandate in 1973. Today, it is mandatory in most jurisdictions, and some regions are testing "pay-as-you-drive" plans that use tracking devices to base premiums on actual distance driven. Coverage varies by location; for example, Australia separates Compulsory Third-Party (CTP) insurance for personal injury from separate comprehensive or property-damage policies. In places like New South Wales, a vehicle must be insured before it can even be registered, highlighting the strict legal requirements.