Car insurance is a necessity in the United States, and other first world countries.

Without it, you could find yourself in a spot of bother with law enforcement authorities, or worse in the event of an accident or theft. It has been called an expensive purchase that nobody really wants to use.

The right coverage is important, but it’s also important to understand what benefits that coverage offers.

Bear in mind that it will always cost a lot more to insure a brand-new vehicle than it will to insure a used car.

With that in mind, consider the following useful tips to keep your premiums in check without skimping on quality coverage.

1. Always Go with a Top-Branded Insurance Company

The lowest premiums are not the best way to go. You get what you pay for.

When you are in the business of saving money on car insurance, it is important to go with a brand-name company such as Geico.

For starters, these companies operate as virtual economies of scale, allowing them to offer the most competitively priced insurance quotes to users. Many insurance companies that offer cheap rates will employ bait and switch tactics. They will put pressure on service and repair shops to offer cheaper quality work.

They may even require clients to pay additional fees for replacement parts. In the unfortunate event of an accident, you may find your premiums at sky-high levels.

2. Find out if Any Discounts Are Available, and if Multiple Policyholders Are Possible

Discounts are a great way to lower your auto insurance premiums.

If the driver has a low-risk record, or a low-risk lifestyle, discounts can easily be applied for.

For example, older drivers who undertake refresher courses, or new drivers who are certified by driver-training courses. Drivers who have completed defensive driving courses will also qualify for discounts. If the vehicle is equipped with anti-hijacking equipment such as gear locks, immobilizers, alarms and the like, the driver will qualify for a discounted rate.

In much the same fashion, you may qualify for a bulk deal if you hold multiple policies with the same company.

Things like renter’s insurance, homeowner’s insurance, and even life insurance can be bundled together for a lower rate.

3. Conduct an Annual Car Insurance Rate Check

Insurers typically offer clients competitive rates, especially if they’ve been with them for a few years.

Your rates are likely to improve over time if you don’t make any claims against the insurer. According to the CRNRC (Consumer Reports National Research Center), just 1,900 of 19,000 subscribers to the site realise that they would enjoy savings if they changed insurers.

Regardless, it is vital that car insurance companies are checked for their rates to ensure that you get the best deal.

4. Get the Best Deductible for Your Car Insurance

Deductibles are an annoyance, and nobody likes a high deductible.

Simply put, a deductible is the amount of money you must pay when you have a claim.

The higher the deductible, the less favorable the insurance package, and the lower your premium typically goes. If the deductible rises from $250-$550, your premium in the event of a collision can be reduced by as much as 35%. If you want to increase your deductible to $1,000 +, your monthly premium could decline by as much as 40%.

There are other factors that can reduce your monthly premium on your auto insurance, such as a clean driving record. The general rule is as follows: If you are an excellent driver, you can risk a lower premium with a higher deductible.

But a caveat is in order: accidents happen so it is important to err on the side of caution.

These Aspects Should be Factored in Too

These are but a handful of the many factors in play when choosing auto insurance.

It’s always a good idea to report things like reduced mileage to auto insurance companies.

The average is typically 12,000 miles per annum, but if your mileage is less than that, your insurance company could reduce your premium by as much as 10%. The type of car you have also plays into the cost of the auto insurance. Cars with lower accident rates qualify for better deals. Another important aspect to consider is your credit score.

Across the US, auto insurance companies can easily check credit scores. The lower your score, the higher your premium.