Why Some Cars Are More Expensive to Insure Than Others
Your insurance premiums don’t just vary based on your credit score and driving history; they also take the kind of car you drive into account. Some vehicles are more expensive to insure than others for a handful of reasons, so depending on your ride, you might be paying more than the average driver for your auto insurance.
Here are some of the factors that make some cars way more expensive or substantially cheaper to insure than others.
Level of Luxury. High-end cars with expensive resale values are typically pricier to insure, and for good reason: they are the most expensive cars to replace in the event of a bad accident. Therefore, your insurance company will most likely raise your monthly fee.
Sportiness. When people buy sports cars, they are much more likely to show off and drive fast than they would be if they were behind the wheel of a minivan. As a result, sports car owners are often more dangerous drivers who are more expensive to insure.
Horsepower. Cars will big motors and more horsepower indicate that you might be at a higher accident risk. Therefore, your insurance company will assume you are more likely to wind up in an accident and charge you more for coverage.
Theft Appeal. If you have a car that is often targeted by burglars and car thieves, then you will probably have to pay more to insure it, regardless of how well you drive. Cadillac Escalades and Ford trucks are often targeted by thieves while cars like the Volkswagen Beetle and Buicks are much less likely to garner unwanted attention.
Value. If your car is seven years old and has hundreds of thousands of miles on it, then its value will have decreased significantly. This makes it a less expensive car to repair or replace, and therefore less expensive to insure.
