Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Insurance Lawyer

UPDATED: Jul 14, 2021

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In a nutshell...

  • If you total your car in an accident, it will cost them more to replace an expensive car than an inexpensive one
  • Since car insurance is all about risk, a poor driving record automatically makes you a candidate for higher insurance rates
  • The higher speeds and recklessness dictate a higher likelihood of accidents

According to the report, the most expensive vehicle to ensure in 2010 was the 911 Carrera GT2, a gorgeous two-door coupe from Porsche.

The report stated that a middle-aged man with a decent driving record pays about $3,000 annually to insure this car.

That may seem a bit excessive, but when you consider a retail price tag in the six-figure range, you would expect insurance coverage to be rather expensive.

On the other end of the scale, the report listed cars like the Honda Odyssey and the Dodge Caliber. Enter your zip code above to get FREE car insurance quotes today!

Will a more expensive vehicle be more expensive to insure?

In terms of basic liability coverage, the difference between expensive and inexpensive cars will be reasonable.

However, when it comes to collision, fire and theft, and comprehensive coverage, a car of higher value will obviously be more expensive to insure than one with a lower value.

Car insurance companies take on risk when they write a policy; a risk that they will be able to make a profit from your premiums that will be greater than any claim you might make.

As the value of your car climbs, so does the risk for the insurance company. In order to protect themselves as much as possible, they must charge a higher rate for more valuable cars.

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Why are sports cars and SUVs more expensive to insure?

The higher speeds and recklessness dictate a higher likelihood of accidents and therefore, a higher cost for insurance. SUVs fall into a similar category, albeit for slightly different reasons.

SUVs are, by design, intended to be used off-road or in precarious weather conditions. Even if you never engage in that type of driving, the potential exists to do so.

Therefore, the insurance company must take into account the possibility that your vehicle may be used for more than simply tooling down the highway.

Furthermore, many SUVs are built higher off the ground in order to compensate for debris that might be encountered when driving off-road.

How do insurance companies figure in so many factors?

While all these factors may seem difficult to comprehend, car insurance companies employ an army of actuaries and thousands of pieces of statistical data to determine risk.

They have developed statistical formulas so accurate that they can predict with regularity what types of drivers will be the most expensive and how much they’ll pay in claims on an annual basis.

Of course, their statistical data relies on what we would consider “normal circumstances.” A natural disaster like hurricane Katrina or the Joplin tornado can skew those numbers significantly.

What if I have an expensive car and a poor driving record?

If you have both an expensive car and a poor driving record, you, unfortunately, have strikes against you in the two most important factors that determine car insurance rates.

Since car insurance is all about risk, a poor driving record automatically makes you a candidate for higher insurance rates regardless of the car you drive.

Throw in an expensive car on top of that and you have a recipe for extremely expensive insurance. If you’re a driver with a poor record, it’s probably a good idea to purchase the cheapest car possible and stick with it until your record is clean.

The good news for drivers with poor records is that accidents and violations disappear from your history over time. Insurance companies do this differently, according to their own policies.

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Do multiple drivers have an effect on car insurance rates?

Multiple drivers living in the same household will generally be included on the same insurance policy. Therefore, each one does have an effect on your insurance rates.

That’s why it is generally a good idea to assign the driver with the better history to the more expensive of the vehicles.

When you sign up multiple drivers for insurance, the representative will ask you which car each driver uses most often. By assigning the better driver to the more expensive vehicle, you will get a better rate on your insurance.

Multiple drivers can still use all available vehicles; you’re simply informing your insurance company of the particular vehicle each driver is most likely to use.

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