Henrico Times

Which are the most expensive cars to insure?

If you’re in the market for a new or used vehicle, you’ve probably got quite a few different factors running through your mind. Mileage, the vehicle’s safety ratings, maintenance history, number of prior owners, accident reports, the down payment and overall price: all factors that are well worth looking into, and that’s far from an exhaustive list. Another variable to consider? Which are the most expensive cars to insure?

Why are certain cars more expensive to insure?

First, let’s briefly examine how car insurance rates are determined in general. A wide variety of factors go into deciding your insurance rate. Do you need full coverage, or only liability insurance? The bottom line is as follows: pricing is set by your insurance company based on the relative risk they have determined you and your specific vehicle present.

So how is the nebulous concept of risk determined? In the case of you and your vehicle, insurance companies look at hundreds of factors to come to a conclusion and determine how much you’ll need to pay. These factors include:

Your driving record

It’s common sense that you should try to drive safely, but maintaining a clean driving record is also very important when it comes to purchasing car insurance. In fact, your driving record/accident history is often the most important factor that insurance companies consider. A driver who has been involved in or caused several accidents will pay substantially more for insurance than a driver who hasn’t.

Your commute

A lesser-known risk factor, but one that makes perfect sense if you think about it. The further you live from your place of work, the more time you’ll spend in the car every day. Add in rush hour traffic, the fact that you may be stressed due to running late, or being less than alert after a poor night’s sleep and it’s easy to see why insurance companies factor this in.

Your age

Plenty of studies over the years have shown that younger drivers (under 25) and older drivers (over 65) are more likely to be in an accident than the rest of the population. Thus, folks in these age groups usually end up paying more for insurance.

Your credit score

The better your credit score, the less you’ll likely have to pay. Many insurance companies use credit scores to try to determine how likely you are to pay your bill. This is an imperfect measure, but if you have a lower credit score, you’ll likely be charged a bit more for insurance.

Your payment history

This one seems like a no-brainer. If you have a history of late or missed payments, your insurance company may charge more to cover the non-payment risk.

Your marital status

Some companies use your marital status as a factor to determine your rates, the thought being that you are more likely to drive safely with loved ones in the car.

Your vehicle

Finally, a common factor, and the one that is the focus of this article, your car. Most car insurance companies operate under the theory that the type of car you drive says a lot about you and your driving habits. For example, your rates are likely to be more favorable if you drive a minivan rather than a sports car. More on this in the next section.

Your car’s make, model, and specific features all affect insurance premiums

The overall type of vehicle you drive (minivan vs. sports car) is far from the only vehicle-specific factor that insurance companies consider. In fact, everything from your car’s size to its color can be put under the microscope. When determining your premium, insurance companies may look at your vehicle’s:

Safety rating

A higher safety rating can potentially mean a lower car insurance premium. Most insurance companies only look at required, basic safety features such as seatbelts and airbags, but some companies do look at more advanced safety features. Collision warning systems, back-up cameras, lane departure warnings, and advanced driver-assistance systems (ADAS) help determine rates or even offer discounts. However, it’s worth noting that these safety features cost thousands and can make result in high repair costs.

Size

In general, between a larger car and a smaller car with the same safety rating, the larger car is safer in a collision, and thus will come with a lower insurance premium. However, having a larger engine could mean higher average rates, as they cost more to replace or repair.

Color

Color, despite popular myth, does not directly affect your insurance rates. If you purchase a car of a more popular color, you may end up paying more due to supply and demand. More expensive cars to buy are often more expensive vehicles to insure.

Age

The older your car, the more difficult it is to find replacement parts, and the more expensive it is to insure. Typically younger cars are the most expensive cars to insure.

Risk

Sports cars are generally more expensive to insure than other vehicles. Statistically, sports car drivers have a higher risk of being involved in an accident than drivers of another car model. This usually results in higher car insurance costs and explains why they are often more expensive vehicles to insure.

The “luxury factor”

This one is a bit funny to think about, but the more expensive or high-end your vehicle is, the harder it is to repair and the more expensive it is to insure. Any luxury car, especially a luxury sports car, will send auto insurance rates up.

Original source can be found here