Reader’s Question:

Is it true that high performance car tend to increase auto insurance rate?

Ross

St. Paul, MN

If you have a new sports car, you are probably excited to drive the car but before you hit the road, make sure that you have high performance car insurance. However, don’t be surprised if they offer a rate higher than what you expected. High performance car pose high risk to car insurance companies. This type of car can be driven in manners that caused traffic accidents and crashes. However, if your friend also has a sports car and you found out that the same car insurance company offered your friend cheap sports car insurance, a rate lower than what the company offered you, don’t be upset. There are certain models of car that the company poses more risk to car insurence company. This is based on the following factors.

a. Car insurance companies avoid risk so they charge high car insurance rate to model of cars that are likely to be stolen, vandalized or involved in traffic accidents.

b. Expensive cars and new model of cars also pose risk to car insurance companies because these types of car are expensive to repair also have expensive parts. This makes car insurance relatively higher to customers.

Sports car insurance rate or car insurance rate in general may vary from way one model to another because there are certain models that are more attractive to thieves and being stolen. Highway Loss Data provides data on the average theft claims that car insurance companies paid out. Aside from this reason, there are also data on collision and injury. Car insurance companies also used their own claims experience in evaluating the risk of certain model of cars. The model of sports car that has higher incidents of claims can be charged by the car insurence company with higher sports car insurance rate than the other model of sports car. If you want to find cheap sports car insurance rate or car insurance rate in general, consider the model of your car.