The invention of the car changed everything about how we travel, reshaping cities, economies, and cultures worldwide. Cars have been around for quite a while now, and they’ve become something almost anyone can access. But when was this amazing technology first created, and who was behind it? And what about car insurance —where did that start? Let’s find out.
The internal combustion engine
Before we get back into cars, we need to begin our journey back to the late 1600s, where we find Dutch physicist Christiaan Huygens, who designed the first internal combustion engine. His design, though never built, used gunpowder as fuel.
Although Christiaan Huygens came up with the first design, one of the biggest breakthroughs in engine design—and car history—came from Nicolaus August Otto. In 1876, Otto invented the first effective gas motor engine, a practical four-stroke internal combustion engine known as the “Otto Cycle Engine.” Once he completed it, he put it right into a motorcycle. Otto's four-stroke engine was so successful that it became the standard for all liquid-fueled cars from that point on, marking a huge moment in automotive history.
Today, a modern internal combustion engine uses the explosive power of burning fuel to push a piston inside a cylinder. The piston's movement then turns a crankshaft, which ultimately spins the car's wheels through a chain or drive shaft. Gasoline, diesel, and kerosene are the most common fuels used in these engines.
Who invented the first car?
In 1769, Nicolas Joseph Cugnot from France built what’s often considered the first automobile. His invention has earned recognition from both the British Royal Automobile Club and the Automobile Club de France as the original, but you’ll often see Gottlieb Daimler or Karl Benz credited in history books. That’s because Daimler and Benz created the first highly successful, practical gasoline-powered vehicles, kickstarting the modern age of cars. In the following section, we will explore the individuals who invented the first car:
Karl Benz
Speaking of the modern age of cars, the first modern automobile hit the scene in 1885 when Karl Benz (Benz & Cie) developed a gasoline-powered automobile powered by an internal combustion engine. On January 29, 1886, he received the first patent (DRP No. 37435) for said gas-fueled automobile—a three-wheeler called the Motorwagen. It had a top speed of 16 km/h.
Then, in 1887, he created the Motorwagen Model 2, followed by the Motorwagen Model 3 in 1889. Benz started selling his vehicle, known as the "Benz Patent-Motorwagen," in the late summer of 1888, making it the first automobile ever available for purchase.
Here’s a fun fact: we have Bertha Benz to thank for the third gear and brake pads! In 1888, the early version of the Motorwagen only had two gears, so it struggled to get up hills. But after Bertha took the car on a long-distance trip, she suggested adding a third gear to handle hills better. During that same journey, she also came up with the idea for brake pads.
Gottlieb Daimler
Gottlieb Daimler is often credited as the first person to create a practical internal combustion engine. While Benz was working on his Motorwagen in 1885, Gottlieb Daimler and his design partner, Wilhelm Maybach, took Nicolaus Otto's internal combustion engine to the next level, creating what’s often seen as the first modern gas engine. The Daimler-Maybach engine was small, lightweight, fast, and used a gasoline-injected carburetor with a vertical cylinder. On March 8, 1886, Daimler modified a stagecoach to fit his engine, making the world’s first four-wheeled automobile.
In 1889, Daimler and Maybach took things further, building their first car from scratch instead of adapting an existing vehicle. This new model featured a four-speed transmission and could reach speeds of up to 16 km/h.
In 1890, Gottlieb Daimler and Wilhelm Maybach formed Daimler Motoren Gesellschaft (also known as Daimler Motors Corporation) to make and sell his automobile designs. In 1901, Wilhelm Maybach designed the Mercedes automobile. Then, in 1926, this company merged with Karl Benz's Benz & Cie. to create Daimler-Benz—the company behind the iconic Mercedes-Benz brand.
Who were the first car manufacturers?
You might expect us to say Benz and Daimler, but technically, that’s not quite accurate. While Daimler and Benz were indeed pioneers in engine invention, they were initially more focused on designing engines than on full-scale car manufacturing. In fact, they didn’t start as car manufacturers themselves. Early on, they made money by licensing their patents and selling their engines to actual car manufacturers, like Panhard & Levassor and Peugeot. Read on to learn more:
Panhard & Levassor, France
Rene Panhard and Émile Levassor were originally partners in a woodworking machinery business before deciding to try their hand at car manufacturing. In 1890, they built their first car using a Daimler engine, thanks to a commission from Edouard Sarazin, who held the French license rights to Daimler’s patent.
Panhard and Levassor didn’t just build cars; they also improved car body design. They introduced innovations like a pedal-operated clutch, a chain transmission that led to a change-speed gearbox, and a front radiator. Levassor was the first to move the engine to the front and use the rear-wheel drive, a setup known as the "Systeme Panhard." This layout became the standard because it offered better balance and improved steering. Panhard and Levassor are also credited with inventing the modern transmission, which they installed in their 1895 Panhard model.
Peugeot (1891), France
The Peugeot family started manufacturing back in 1810 with a steel foundry. Armand Peugeot, however, quickly became fascinated by the potential of automobiles. After meeting with pioneers like Gottlieb Daimler, he was convinced cars were the way forward. Peugeot’s first car—a three-wheeled, steam-powered model designed by Léon Serpollet—was produced in 1889, though only four were ever made.
By 1890, after meeting Daimler and Émile Levassor, Peugeot switched from steam to a more advanced four-wheeled car with a gasoline-powered internal combustion engine, built by Panhard under Daimler’s license. Peugeot was the first manufacturer to put rubber tires (solid ones, not air-filled) on a gasoline-powered motor vehicle.
Early car manufacturing in Canada
In 1867, Canadian watchmaker and jeweller Henry Seth Taylor unveiled a steam-powered buggy at the Quebec Stanstead Fall Fair—the first “automobile” invented in Canada. Unfortunately, Taylor didn’t add any brakes, so he ended up crashing it right into a creek.
In the late 19th and early 20th centuries, many Canadian pioneers tried their hand at building steam, electric, and gasoline-powered cars. These included the:
- Fossmobile (Canada’s first successful internal combustion, gasoline-powered engine automobile)
- LeRoy
- Russell
- Tudhope
- Galt
- and many more.
Despite these efforts, no independent Canadian car company has made it in the long run. Canada simply didn’t have the population size, financial resources, or technological capacity to support its own auto industry.
But that didn't stop Canada’s journey with the automobile industry. Around the early 1900s, cars quickly became a widely mass-produced and dependable way to get around the country. Thanks to preferential trade deals within the British Empire and strong ties with U.S. suppliers, Canada became one of the world’s top car producers from 1918 to 1923.
Unfortunately, this didn’t lead to the rise of Canadian car companies. Instead, American manufacturers took over as smaller Canadian businesses struggled with the high costs and rapid technological demands of the automotive industry.
LeRoy Manufacturing Company
In 1899, Nelson and Milton Good founded Le Roy Manufacturing Company, launching Canada’s first gas-powered car made in quantities for sale. The LeRoy was manufactured in Berlin, Ontario.
The brothers started by purchasing an Oldsmobile from the U.S. and used it as the foundation for their first car. In 1901, they converted an American Mobile steamer to run on petrol, and by 1902, they were ready for production. The car had a single-cylinder engine and was modelled after the Curved Dash Oldsmobile. Interestingly, it didn’t have wheel brakes; instead, the driver used the reverse pedal on the epicyclic transmission to stop the car. However, production came to an end in 1904 because they ran out of funding, and they went out of business in 1907.
Ford Motor Company of Canada
LeRoy was closely followed by an organization you've certainly heard of in Canada: the Ford Motor Company of Canada. Gordon M. McGregor of Windsor struck a deal with Henry Ford only a year after Ford began production in Detroit. Unlike LeRoy, Ford found success creating the Model C (and later, the Model T) in Canada. In 1913, Ford became the world's biggest car manufacturer.
Windsor—and Southern Ontario as a whole—became Canada’s version of Detroit thanks to two key policies. First, Canada’s National Policy imposed a 35% tariff on imported cars, aiming to make Canadian products cheaper than their mostly American competitors and encourage local production. Second, as part of the British Empire, Canada could ship Canadian-made goods to many countries within the Empire, later the British Commonwealth, at lower tariff rates than other nations, including the United States.
In the following sections, we will delve into the detailed timeline of when Henry Ford invented his cars, including specific models like the Model T. Additionally, we will explore the tariffs on imported cars that were implemented in 1936:
When did Henry Ford invent the car?
Henry Ford didn’t actually invent the car. The first automobile can be credited to Nicolas Joseph Cugnot from France, who built it back in 1769. However, history books usually highlight Gottlieb Daimler and Karl Benz because they were the first to create practical, gasoline-powered cars that really took off, marking the start of the modern car era.
When did Henry Ford invent the Model T?
The Model T was introduced in 1908, with Henry Ford focused on making it affordable, easy to drive, and durable. Thanks to mass production, he could price it far below his competitors, and at its peak, half the cars in the world were Model Ts.
1936 imported cars tariff
In 1936, the Canadian government put a tariff on imported cars to protect local manufacturing and boost Canadian-made sales. For a while, Canada had its own unique lineup of cars that you couldn’t find in the U.S., like the:
- Ford Monarch
- Pontiac Beaumont
- Chrysler Fargo
However, the tariff ended up holding back the Canadian economy by limiting trade with the U.S., so change was on the horizon. The 1965 Canada-US Automotive Products Trade Agreement, or Auto Pact, removed the tariffs between the two countries, allowing motor vehicles to be sold freely across the border. While this marked the end of exclusive Canadian models, the following years still saw some incredible Canadian-designed and produced cars.
Whether you're inspired by the history of car inventions or excited about the future of driving, make sure you're protected on every journey with comprehensive auto insurance. At BrokerLink, we offer tailored insurance solutions to fit your unique needs, ensuring peace of mind on the road. Connect with our expert team today to find the perfect coverage for you.
Get an auto insurance quote [phone]
When did electric vehicles come to Canada?
Canada's first electric vehicle was a horse-style buggy equipped with an electric motor, commissioned by Toronto lawyer Frederick Fetherstonhaugh in 1893.
Why did electric vehicles disappear in the early 1900s?
Electric cars were actually quite popular in the early 1900s compared to early internal combustion engines. Starting an internal combustion engine back then required turning the crankshaft by hand. Drivers had to set the throttle and spark timing, insert a handle into the front of the engine, and manually turn the crankshaft.
This could be tricky and even dangerous—if the engine backfired, the crank could kick back and potentially break an arm. In contrast, electric cars were much simpler to start; just press a button. This ease of use made them especially popular with drivers who wanted to avoid cranking, particularly women.
That is until Cadillac debuted with the self-starter in 1912. By 1920, nearly every car on the market could start on its own, and electric cars began to disappear. No one wanted to wait around for their electric car to charge when they could just "gas up and go." It took many decades before models like the Nissan Leaf and Tesla Model S made electric cars a practical option for everyday drivers once again.
The history of car insurance in Canada
These days, insurance feels like such a natural part of big financial decisions that it’s easy to think it’s always been around. Insurance offers crucial financial protection for drivers and homeowners, and it also provides support for loved ones after someone passes away.
Auto insurance is one of the most common types of coverage out there. There are both fault-based and no-fault auto insurance plans in Canada. In a no-fault plan, insurance companies pay out for injuries and sometimes property damage without needing the courts to determine who’s at fault. In Canada, Alberta, Ontario, Quebec, and the Atlantic Provinces use no-fault insurance systems.
While it’s tricky to pin down the exact history of the first car insurance policy in Canada, one thing we can tell you is that it's been around for decades. In fact, Saskatchewan introduced the world’s first no-fault auto insurance system in 1946, with Québec following suit with a similar plan in 1978, but it was likely around long before that.
While many provinces offer private auto insurance, some—like British Columbia—provide it publicly. Auto insurance is mandatory in Canada, though specific rules vary by province, and drivers caught without it can face hefty fines equalling thousands of dollars.
When was compulsory car insurance introduced?
In 1925, Massachusetts became the first U.S. state to require car insurance by law. The UK followed in 1930, becoming the first country to introduce mandatory car insurance nationwide with the Road Traffic Act.
Minimum required auto insurance coverage across Canada
In 1996, Canada introduced the Automobile Insurance Rate Stability Act, setting minimum standards for car insurance across provinces. Liability car insurance is mandatory and required before you can license a vehicle. Another mandatory coverage across Canada is accident benefits coverage. Then, depending on where in Canada you live, some provinces require you to carry uninsured motorist coverage and/or direct compensation-property damage coverage. Let's break these all down for you:
Third-party liability coverage
Third-party liability insurance protects you if you’re found responsible for causing injury or property damage to someone else while driving. If someone files a claim or lawsuit against you, this coverage takes care of legal fees, medical and rehab expenses, funeral costs, and other related costs. Each province or territory has a required minimum coverage limit that all drivers need to meet, with most of the minimum amounts being $200,000.
Accident benefits coverage
Accident benefits coverage is also mandatory across Canada. This insurance kicks in if you or your passengers are injured in a collision, covering medical bills, rehab costs, funeral expenses, lost wages, and other related fees—no matter who’s at fault.
Uninsured motorist coverage
Uninsured motorist coverage is designed to protect you if you’re in an accident with a driver who doesn’t have enough insurance—or any at all. With this coverage, your insurance company steps in to cover losses from the collision. It also provides protection if you’re involved in a hit-and-run.
Direct compensation-property damage coverage
If you’re in a car accident where the other driver is at fault, direct compensation-property damage (DCPD) covers your vehicle damage by letting you work directly with your own insurance company for repairs or replacements. This means you’ll get compensated faster and more smoothly without needing to go through the at-fault driver’s insurer.
Popular types of optional auto insurance coverage
In addition to the mandatory car insurance options, there are a few extra policies that many drivers opt to add to their standard plan for additional coverage. Let's talk about types of optional auto insurance coverages below:
Collision coverage
Collision coverage is a type of property damage insurance that helps pay for repairs or replacements if your car is damaged in a collision. It’s an optional policy that comes with a deductible, meaning you’ll need to pay a set amount before your insurance covers the rest.
Comprehensive coverage
Comprehensive coverage protects you if your car is damaged by something other than a collision. This includes events like theft, vandalism, severe weather, or falling objects. Keep in mind that comprehensive coverage comes with a deductible, which is the amount you’ll need to pay before your insurance covers the rest.
Accident forgiveness
Accident forgiveness is a one-time add-on to your auto insurance that protects your rates after your first at-fault accident. Normally, your rates would go up after an at-fault collision, but with accident forgiveness, that first one won’t affect your premiums. It’s designed to reward safe drivers and encourage good driving habits.
The importance of car insurance
Car insurance can be a valuable way to protect yourself and your family from unexpected, high costs. By investing a bit now in coverage like third-party liability, accident benefits, collision, and comprehensive, you can avoid facing huge expenses later if an accident happens. The right insurance doesn’t just protect you—it also helps cover your family, passengers, and other drivers on the road.
In the event of an accident, having the right coverage means you won’t have to worry as much about property or injury costs. You can get free quotes online or have an insurance broker help find the best options for you and your family. Handling the aftermath of an accident can be stressful and time-consuming, but good insurance takes a lot of the hassle out of the process. It can cover towing, repairs or replacements, and the costs for damages to others involved, so you're not left paying for everything out of your own pocket.
Contact BrokerLink for affordable car insurance today
Whether you're looking to save on car insurance, have questions about what type of coverage is right for you, or are looking for help to file an insurance claim, the experienced team from BrokerLink is here to help!
Talk to a BrokerLink broker today to find the right insurance coverage for your needs. You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.
Get an auto insurance quote [phone]
