It is legally mandatory for all car owners to purchase car insurance for their vehicle and if the car does not have valid insurance, the car owner can be penalized. A majority of car owners usually do not claim any insurance, so the insurance is a major expense for the vehicle owner.

The insurance charged by the different insurance companies will often vary significantly depending on various parameters for the car. Hence it is advisable to Compare Car Insurance Rates from multiple insurance companies before choosing a specific insurance company for insurance.

Each insurance company uses a different formula for calculating the car insurance for a particular car. The formula will consider the car brand, model number, year of manufacture, condition of the car, whether it is involved in any accident or the owner has made any kind of insurance claim earlier. Additionally the profile of the driver, his driving history is also considered.

Usually young drivers usually have less experience in driving cars and also more likely to drive the car rashly, at higher speeds and cause accidents. So most insurance companies are charging a higher insurance premium if the driver is below 25 or 30.

To compare the insurance rate for a particular car, the vehicle owner can visit the various car insurance companies and ask for a quote after providing details of the car and the driver. Some of these insurance companies may also combine the car insurance with other insurance like home insurance. Alternately there are a number of aggregators which get quotes from different car insurance companies for the car owner, after he provides details of his car.

The car owner has to carefully compare the quotes received for the car, check the terms and conditions before choosing the best insurance deal for his vehicle considering price and other factors.