Doesn't it feel sometimes that when it comes to auto insurance it's like playing the game no one tells you how to play it right and where the rules are written without your consent? Well, to ease the situation, here are some auto insurance rules most insurance companies won't tell you about.

1. If your credit rating is good you will have better rates.

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Most of the insurance providers, whether big or small, use credit information to determine the rates you will be charged with. That's because numerous studies have shown that there's a direct link between a person's credit rating and the probability that the very same person would file an insurance claim. Those who have poor credit scores tend to file claims more often than drivers with good credit reports. And we know how insurance companies don't like insurance claims.

Tip: If your credit report is not that good, don't haste with buying auto insurance. First, make sure you have settled all your debts and closed unused credit lines. After doing this wait for a month and your rates will be much lower than you would expect.

2. The model of your car affects your premiums.

Insurance companies don't disclose the exact methods they use to calculate their rates, but your car make and model certainly plays an important part in the equation. All insurance providers have charts on all car models and their respective insurance cost based on theft rates, repair costs and overall safety.

Tip: Try purchasing a car with reasonable repair costs, good safety scores and low theft rates in your area in the first place. This will always give you the chance of having cheap car insurance.

3. Bad driving means higher rates.

Most insurance companies will raise your rates up to 40% of the initial premium you've paid if you have a single at fault accident. However, not all companies follow this rule.

Tip: There are insurance providers that have higher tolerance for first-time accident drivers. So when you purchase your cheap car insurance policy or ask the provider if they have such incentives and what are their rules.

4. If your friend borrows your car and ends up in an accident you will still have to pay higher premiums.

It doesn't matter who was driving the car if it was with your own consent. It will be you who will file the claim and this will eventually lead to increase in your premiums.

Tip: In case you didn't give consent on using your vehicle your friend will be liable for the accident. However, if he or she doesn't have own insurance or the damage resulted exceeds the amount of coverage contained with his or her policy the other party may come to you in order to settle additional medical and repair costs.

5. Official cancellation is required when switching providers.

You are free to cancel your policy any time you feel the need to. All that is required is to inform your current provider in written form.

Tip: After you have searched for cheap car insurance and chosen another provider you can simply contact your insurance agent and inform him that you want to cancel your current policy from a certain day. In most cases the company will send you a filled out form where only your signature will be required.