Getting a good deal on auto insurance and keeping your premium from rising is hard. Here are a dozen ways the industry works, with tips to help you save:

1. If you have good credit, you'll pay less. Almost all insurers pull your credit report. Studies show a direct correlation between your credit score and the likelihood that you'll file a claim. Insurers know that if you pay your bills on time and have the same credit accounts for a long time, you're more stable than someone who pays late and frequently opens/closes accounts. This information is used to create your "insurance risk score," a factor that determines your auto-insurance rate.

Tip: If you have unusual credit activity, wait a month for it to return to normal before buying auto insurance.

2. Your car model affects your premium. The auto insurers have a rating system for every car make and model. Most use a system devised by the Insurance Services Office, which starts with the vehicle cost, then factors in safety and theft data. Cars are rated from 1 to 27. Higher number means higher premium. If you're buying a new car, ask your insurer about the difference in premiums for cars you're considering. Search online for the latest top 10 lists on the most and least expensive cars to insure.

3. Pay in full to avoid installment fees. Payments usually are offered on a six-month, quarterly or monthly basis, but most insurers charge an administrative fee for breaking up the payments. The more you break it down, the more those fees add up.

Tip: Remember that insurance companies can cancel your policy for late payment, sometimes with minimal notification, so make sure you don't miss an installment. If you can pay the premium up front it may save you a few dollars.

4. That Beethoven CD in your car isn't covered. Stolen or damaged personal items aren't covered by your auto insurance.

Tip: You can file a claim on your home insurance. Most home-insurance policies will cover smaller, less expensive items such as compact discs. But if you carry expensive items such as computer equipment, ask about a rider to your home-insurance policy. It's wise to take photos or video of any expensive personal items before they go missing.

5. You'll pay for your bad driving. The industry standard is to increase your premium by 40% of the insurer's base rate after your first at-fault accident. For example, if the company's base rate is $400, your premium will go up by $160. Not all auto insurers play by this rule, though, and some may increase your individual rate by 40%. Regardless of what formula they use, most of the time, your rates will increase.

Tip: Some insurance companies have a "forgive the first accident" policy. The qualifying variables are wide-ranging, so ask your company if it has a forgiveness policy and how to qualify.

6. You'll pay for your friend's bad driving, too. If your friend borrows your car and crashes it, you'll have to file a claim with your insurance company. You'll have to pay any deductible that applies, and your rates will probably go up as a result of your claim.

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