Why High-Performance Cars Cost More To Insure

Posted on: 27 March 2017

If you own a car and drive it, you will need to have car insurance on it. This is not only a state requirement, but it is also a requirement of lenders that issue loans on vehicles. When you purchase auto insurance coverage, your quote will be based on a lot of different things, but did you realize that you will pay more for the coverage if you own a high-performance car? Insurance companies charge higher rates for cars like this for several reasons, and here are a few important things to know about this.

What makes a car a high-performance car?

There are several different features that place a car in the category of high-performance vehicles, and these include the size of the engine and the rate of speed the cars can travel. Cars with larger engines are often considered high-performance cars because they can achieve higher speeds, and they can achieve these high speeds very quickly. Cars that are sport's cars are also commonly considered high-performance cars.

Why does it cost more to insure high-performance cars?

Insurance quotes are largely based on statistical information; and statistically, high-performance cars have a higher chance of getting involved in accidents. This is the main reason you will pay more money to insure a car that falls into this category.

The other reason you may pay more is due to the value of the car. Insurance companies also base quotes on values, because the value of a car will determine how much the insurance company must pay if the car is totaled. High-performance cars are often worth a lot more money than standard cars.

A third factor to consider is the safety ratings on the car you own. High-performance cars do not typically measure up as the safest types of cars to drive, and this is yet another reason it may cost more to insure a car like this.

How can you save money when getting auto insurance for a high-performance car?

To save money on insurance, you may want to shop around for quotes. In addition, there are things you can do that may help you get discounts on your policy. For example, avoiding accidents, tickets, and insurance claims will help you keep your costs as low as possible. Raising your deductible on your policy may also help you cut your costs.

You can learn more about auto insurance prices and ways to find discounts on your policy by contacting an auto insurance company today.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!