When we buy a car, we also buy insurance for the car. It is mandatory in some states of US for all the vehicles running on the road to have insurance coverage. Along with the registration charges, insurance charges are also levied at the time of selling the car. There are various packages available for car insurance and have individual car insurance rates. The package varies on the insurance benefits. Some of the benefits are mandatory where some of them are optional. The car is generally covered for theft, accident and damage which is not self destructive.

The insurance coverage is done keeping a cap on the sum assured. The sum assured would depend on the market value of the car. A percentage of the sum assured is taken as premium. The coverage is for one year and the premium has to renewed annually well in time to avoid lapse of coverage of insurance for the car. The insurance companies have themselves maintain a database of their customers and remind them promptly when their insurance renewal of their car is due. There are options to renew the insurance online too. One has to apply online for renewal and pay the premium and other charges online and the insurance documents would be delivered to home.