Car Insurance (also called motor or auto insurance) is primarily done to protect your vehicles from unforeseen risks. Its primary use is to provide financial protection against physical damage or any injury or damage resulting from traffic collisions and against liability that could also arise there from. Car insurance may additionally offer financial protection against as theft of the vehicle, and against damage to the vehicle such as keying and damage sustained by colliding with stationary objects. Car insurance can be for the insured party, the insured vehicle and third parties. The premium of the insurance is dependent on various parameters like car value, coverage type, vehicle classification etc. The premium amount of car insurance is decided on the basis of the Insured declared value of the vehicle. It is important for any policyholder to compare various insurance options before going for renewal or a new policy.