Expensive Cars Require Expensive Insurance

POSTED BY , UPDATED ON October 9th, 2019

Expensive Cars Require Expensive Insurance

Street-wise, money-smart “car guys” advise you to select a car with as much attention to the cost of insurance as to the purchase price. Although many dealers currently are offering seductively sweet deals on some sweet rides, your insurance agent may have some brutally bitter news when you call for proof of insurance—especially if you lease or finance your “little cream puff.” If you are looking to get a car on finance then you may want to compare the best car finance deals online to find the best deal to suit your needs. The cuter it is, the more it will cost. After you kick the tires and take a test drive, find out how much you really will pay for the privilege of driving your new car. With all this being said, having insurance is essential to have for any driver. This way, you’ll know that you have taken the right steps to keep yourself and your family safe on the road. Plus, it’ll cover you from any accidents that could happen, if it is isn’t your fault.


Family-Friendly Means Frugal

Not surprisingly, the Ford 500—the one that looks like a cross between a Lincoln Continental and a police car or taxi cab—leads the low-cost list, because it attracts older, more cautious, more responsible drivers, who avoid crashing as wisely as they avoid paying extra for insurance.

In fact, police forces and taxi fleets choose Ford 500s precisely because of their durability, ease of repair, and overall safety. Naturally, they are too funky to pose much theft risk. Similarly, big Chrysler and Buick family sedans cost less to insure, because they are less likely to sustain major damage in a collision, yet they are unlikely to inflict a great deal of damage on other cars. After doing some further research, the Ford-500 was one of the cheapest cars to insurance last year. 


A Mid-Size Sedan is Not Seductive, but it Saves

All those look-alike mid-size four-door sedans cost significantly less to insure than small, sporty cars, because they are less likely to tangle in bad accidents, and they cost less to repair than other more exotic vehicles.

Most “family” sedans have high-end safety equipment, because air bags sell cars almost as well as extra cup-holders; but they typically have modest four-cylinder engines that simply will not go fast enough to put drivers and passengers seriously at-risk even in freeway and interstate accidents. More popular mid-size sedans—especially Honda Accords and Civics—come with a caveat: They are susceptible to theft for replacement parts.

If your Accord is two or three years old, take extra care to lock and protect it, because it is worth three times your purchase price when thieves chop it up and sell its pieces.


“Dangerous” is a Synonym for “Expensive”

expensive cars require expensive insurance

“Dangerous” here means “likely to inflict a lot of damage when it slams into something or somebody.” Extra-big SUVs, of course, are built to take lots of abuse, but they have a nasty tendency to crunch or collapse little cars when they collide.

Not surprisingly, Hummers rank high atop the “most expensive insurance” list, because they are barely house-broken armored personnel carriers; other big Ford and General Motors utility vehicles rank right up there, too. Of course, when you buy that kind of super-huge urban assault vehicle, you know you are trading energy efficiency and insurance dollars for your own safety and the vehicle’s durability.


Low-Cost Repairs Mean Low-Cost Insurance

Repair shops calculate their charges according to three variables:

  1. the wholesale cost of replacement parts
  2. the difficulty of the repair
  3. the time it will take to complete the repair

Quick and easy naturally costs less. Therefore, insurance companies love cars designed and built for quick fixes. When your mechanic quickly and easily can un-bolt one beat-up but inexpensive old part and swiftly screw-in a shiny new one, making your car look good as new in minimum time with no fuss, no muss, and no hassle, you car insurance company rewards you with lower premiums.

Conversely, of course, when your car requires expensive high-tech parts, and mechanics must earn advanced degrees to reassemble the pieces of your cream puff, your insurance company wants big money up front.


If Thieves Don’t Want it, You Do

If the car you love recently starred in a hip-hop video, its thief-appeal just soared into the stratosphere. You will pay more for theft insurance because of the car’s allure. Example: The Cadillac Escalade has maximum magnetism for the guys who can make it disappear in thirty seconds, because it is sleek and sexy, and also because all of its working parts also work in Suburbans.

Whether they sell a cleverly disguised Escalade to an unscrupulous buyer or chop it up for parts, thieves make a fortune from the gangsta’s ride-of-choice.


So What’s the Conclusion?

You probably can see the themes: relatively inexpensive, anonymous commuter cars, the kind you inevitably find on just about every tract-home driveway, cost least to insure because they satisfy insurance companies’ standards for safety, reliability, and driver trustworthiness.

Small and sporty or super-sized and sexy, on the other hand, will come with monthly insurance payments at least as big as the regular loan or lease payments.

Stephen Anderson from carinsurancequotescomparison.com, contributed to this story!