Everyone who drives needs car insurance, but seeing the monthlypremium disappear from your bank account can still hurt. Eventhough insurance is a necessity for most people, there are sometried-and-true ways to find cheap car insurance.

1. Bundle your coverage

Customers can typically get discounts by buying multipleinsurance policies through the same company. If you only need autoinsurance, this won't be much help, but if you buy homeowners orrenters coverage, or if you insure multiple cars, you should expectlower rates.

2. Reassess your plans and limits

It's never wise to have less coverage than you need, even if itgets you cheaper car insurance. Opting for lower liability limitsmight save you money, but it could come back to haunt you if you'reat fault in an accident. You should always have enough liabilitycoverage to protect your assets – including an umbrella policy, ifyour auto policy's limits aren't high enough.

However, you may be able to trim your coverage in other ways.Have an old car? Drop comprehensive and collision coverage, andconsider using what you'd pay in premiums toward your new car fund.And check to make sure you don't have duplicate coverage. Forexample, you don't need towing and labor coverage if you'rea member of AAA.

3. Try usage-based insurance

If you're willing to give your insurance company access to moreinformation about your driving habits, you could save money onpremiums. Progressive and State Farm, along with other insurers,now offer usage-based insurance programs.

With usage-based insurance, you place a device in your vehiclethat records certain information, including how much you drive andhow abruptly you brake. If the device shows that you drive lessoften than average or that you practice safe driving behavior,you'll receive a discount.

Keep in mind that while insurers say the majority of customersreceive discounts, signing up for usage-based insurance might notsave you money. And privacy advocates have raised concerns aboutsuch insurance, especially the fact that it allows insurers to tell— with a high degree of accuracy — where you're driving.If you're concerned about Big Brother, look for savingselsewhere.

4. Choose a higher deductible

Your deductible is the amount you pay for covered repairs beforeyour car insurance kicks in and pays the rest. It stands to reasonthat increasing the amount of your deductible would lead to a lowerpremium, though drivers in some areas will see better results thanothers. And remember that you might need to pay your deductiblesomeday, so don't commit to an amount that's more than you canafford. Keep the amount in an emergency fund in case you needit.

5. Shop around for cheap insurance

Loyalty is a great quality, and some insurers reward longtimecustomers with discounts. In other cases, your insurer will takeyour continued business as a hint that they can jack up your rates.And some insurers are simply friendlier than others to familieswith teenage drivers or drivers with spotty records. It's alwayssmart to gather a few quotes around renewal time,even if your or your family's insurance needs haven't changed, toensure that you're getting the best deal.

Related: The 7 hidden costs of 'cheap' car insurance

Top graphic by Enrico M. Limcaco. Hand-car illustrationvia iStock.

This article originally appeared on NerdWallet.