Having car insurance policies is essential because it covers the risk on an automobile.
Car insurance offers financial security for any damage to the car caused by a vehicle.
It provides protection from the following:

• It protects you from purchasing a new car if in case someone stoles your old car
• It covers the cost of repairing the car if damaged in an accident
• Cost of lost wages and medical expenses related to the use, ownership and maintenance of an automobile
• Medical expenses not covered by PIP (personal injury protection)

In several countries, it is mandatory for the driver to have car insurance when driving on the public roads.
Liability coverage is an important aspect of insurance policy.
However, liability coverage is applicable only when the insurance holder drives his own car.
In many countries, prices of car insurance depend on various risk factors such as:

• The usage of the car (calculated annual distance driven)
• Characteristics of car
• Credit rating
• Coverage selected (deductible, limit, covered perils)
• Age and sex of the driver
• Driving history

Sometimes, these insurance plans also have flat rate, irrespective of the car usage.
Other ways of fixing premium prices includes odometer-based systems, OBDII-based systems, reasonable estimation, GPS-based systems and many more.
Keep the following main aspects in mind while buying car insurance policies:

• Policy limit per person
• Liabilities such as property damage liability, bodily injury liability etc.
  
• Coverage
• Policy limits per person

While selecting an insurance company, look for the following:

• Payment practice of the insurance company
• Any complaints registered with the state insurance commissioner
• Other features like denial of arbitration right during UIM claims and denial of medical expenses.
  

Car insurance rates comparison Car insurance rates vary from company to company even for the same insurance policy.
When buying insurance for your car, you can save money by comparing the rates of different companies.
You can do this by surfing the internet or by visiting different insurance companies.
Compare insurance rates easily on the internet One of the easiest and the fastest way to compare different insurance rates is to visit an insurance rate comparison website.
Here you can get insurance rate of several A grade insurance companies.
At an insurance rate comparison website, you have to register your driving and vehicle information on a form.
After entering this information, a list of insurance rates from several companies will appear before you.
Thereafter, you can compare these rates and select the one that suits you.
Selecting a Company Once you have insurance rates, the next step is to select an insurance company.
At times, you may doubt whether insurance comparison rates available on the internet are accurate or not.
However, these quotes are accurate.
Insurance company websites only offers rates from A- grade insurance companies.
To check the company's reliability you can do the following:

• Visit the company's website and check if it is helpful and informative
• Check the website of the Department of Insurance to know about the complaints that customers have filed against the company

These extra measures not only helps you in selecting the right insurance company but also helps in getting cheap car insurance rates.