Car insurance can seem expensive, but why does it cost more for some than for others? There are many factors that play into how your insurance carrier decides your rates. While some factors, such as age and gender, can't be changed, there are a few things you can do to lower your insurance rates. Before you renew your policy, consider taking some of the following steps:

1. Buy a Different Car

The type of car you drive can have a profound impact on how much you pay for car insurance. Insurance carriers sometimes charge more to cover a sports car than a family sedan because they assume the person driving the sports car will take more risks on the road than the driver of a family car.

Talk to your insurance carrier about which cars are less expensive to insure. If it's time to trade in your old car, why not find something that is not only safer, but also helps you save a few bucks each month on your insurance premiums?

2. Improve Your Credit Score

Insurance companies look at your credit score when underwriting your policy. Insurance carriers use your credit score to determine how much of a risk they are taking when they provide you with coverage. People with better credit are considered less of a risk than people with poor credit.

By focusing on paying off your debts and making payments on time, you can improve your credit score and reduce the cost of your insurance.

3. Drive Less Often

No matter how clean your driving record is or how safe of a driver you are, your rates will always be higher if you drive a lot. This is simply because you run a higher risk of being involved in an accident if you are on the road a lot.

You can reduce the rates associated with how much you drive by car pooling, taking public transit or asking your employer about working from home.

4. Move to a Different Area

Not only do insurance rates vary by state, they also by neighborhood. While you might not be willing to relocate to a new state to pay a lower insurance rate, you might be able to move to a different neighborhood.

Insurance carriers charge higher rates for urban areas because of the increased risk of theft or vandalism to your car. Insurance companies also feel that city drivers are more likely to be involved in an accident due to the number of vehicles on the road. Consider a move to the suburbs if you live in a big city if you want to reduce your car insurance rates.

There are lots of ways you can reduce your auto insurance premiums. Talk to your insurance carrier to get quotes for lower rates based on these four cost-cutting ideas.