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3 mistakes to avoid that may increase your auto insurance rates

You probably already know that if you have a car accident, your auto insurance rates will be higher. But did you know that other seemingly innocent activities could increase your premium? Insurers take into consideration all sorts of information, including your driving habits, your financial history and your payment plans when they determine how much you will pay for your auto policy. Here are three mistakes to avoid, so you hcan get lower auto insurance quotes.

3 tips tp reduce auto insuranceHow to get lower auto insurance quotes

1. Don’t text while driving

In more than 20 states, you don’t need to break the speed limit, run a red light or be in a car crash to get a ticket for texting while you drive. In these states, texting is considered a primary offense. That means a police officer can give a ticket to a driver who is observed texting or holding a cellphone. You can get a traffic ticket, even if you’re spotted texting or reading emails at a red light.

Think of this as a preventive measure. A 2009 study showed that if you’re texting, you’re 23 times more likely to have a crash compared to drivers who aren’t distracted. That’s even higher than if you were talking on a cellphone. Cellphone users are four times more likely to have an accident, which is about the same rate as drivers who are drunk. Having an accident could increase your auto insurance premium. If you want to lower your insurance costs, obtain auto insurance quotes to get the best rates.

2. Don’t pay bills late

In most states, insurers use your credit score as one of the factors in determining what’s called your insurance score. If you have a low insurance score, you will be charged more for your insurance premium, because you are considered more likely to file a claim on your policy. According to the Insurance Information Institute, actuarial studies show how a person manages his financial affairs is a good predictor of future insurance claims.

To improve your credit score pay your bills on time, keep balances low on unsecured revolving debt, such as credit cards, and apply for and open new credit accounts only as needed. Maintain the necessary minimum number of credit cards and other credit accounts, but limit yourself to a maximum of three or four cards. Check your credit score, before you apply for auto insurance quotes.

3. Don’t pay premium in installments

Most insurance companies add on administrative fees, if you don’t pay your auto premium in full. Installment fees can drive up your car insurance costs. Your annual fees usually will be higher if you have to make more payments. Remember to total up these fees, when you are determining your auto insurance costs. If the fees are low, it may make financial sense to pay in installments. If they are higher and you have the money, you will save money paying your car insurance in full.

When you are ready to buy a new car policy, you can call agents in your local area, contact insurance companies directly or use to instantly get competitive auto insurance quotes from the nation’s leading insurance providers. Simply fill out an online form on to find the right insurance coverage at the best possible price. Take the time to protect you and your family today.

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