Nothing beats that new-car smell. And even if it’s not new — it’s new to you. You’ve got freedom of the road. The last thing you want to have to think about with your new (or “newish”) vehicle in your driveway, garage, or apartment parking lot is car insurance. That just makes you imagine your shiny new ride as damaged, totaled, vandalized, or stolen.
But guess what? New (and newish) cars take major hits like that all the time. That’s why you have protection. What might really surprise you is that your car model affects insurance. Some makes and models are more expensive to insure for a variety of reasons. Here’s why.
Steering Through Insurance Rates: The Role of Car Makes and Models
What are car insurance rates based on? Does insurance depend on the type of car? And does the type of car affect insurance rates? It certainly can. Some makes and models are more likely than others to get damaged, cost more to repair, or otherwise attract higher claims.
Unveiling the Connection
Luxury models, imports, high-performance vehicles, and less common cars in the U.S. tend to cost more to repair. That’s a fact insurance companies have to deal with every day. They keep statistical track of the worst offenders, so to speak, and set their rates accordingly.
It makes sense when you think about it in a supply-and-demand sort of way. If the supply of parts — and mechanics, for that matter — is limited, you’ll pay more. You’ll also have to dig deeper if your car is expensive because it will be similarly costly to repair or replace.
Insurers try to get ahead of such risks by making you, in effect, pre-pay for the claims they think you could make over time.
Under the Hood: Impact of Vehicle Types on Premiums
If you buy or lease certain models, your car payments are likely to be pretty memorable. That’s why it makes sense to get ahead of the curve by knowing what you’ll also be charged for your auto insurance. Start with some general guidelines.
Costly Curve: The Most Expensive Models to Insure
If you’re like most Georgians, you won’t have to ask how much it might cost to insure the Rolls-Royce La Rose Noire Droptail two-seater. You probably wouldn’t even notice how much your monthly premiums were if you could afford the car’s $30 million sticker price.
But it does illustrate a persistent fact: The more your vehicle costs, the more you’ll pay in car insurance. And why shouldn’t that be the case? It will cost your insurer plenty if they need to repair or replace a costly ride.
The Droptail is a rather over-the-top example of the economics of auto policies, but it might help you understand what you’re likely to pay for a real-world, higher-priced vehicle. Here are some additional insights into the connection between vehicle quality and insurance premiums.
Luxury Lanes: High-End Models That Drive Up Rates
The more expensive the vehicle, the costlier the replacement parts. That makes sense — right? At least you hope your $3.8 million Lamborghini Veneno Roadster doesn’t use the same cheap parts you can find at any service garage or parts store. Or why are you paying seven figures for your sporty ride?
When your high-end vehicle gets damaged, vandalized, or stolen, your insurer must cut fat checks to replace the parts — or the entire vehicle.
With that understanding, here are a few of the bigger-ticket vehicles that might more realistically fit in your own budget — even if they stretch it a bit. All are 2024 models, and the figure is the Manufacturer’s Suggested Retail Price (MSRP) starting point.
- Tesla Model 3 – $40,630
- Toyota GR Supra – $47,535
- Audi S3 – $48,495
- Volvo V60 Cross Country – $51,495
- Cadillac CT5-V – $52,890
- BMW i4 – $53,195
- Mercedes-Benz CLE – $57,650
If you buy or lease a vehicle in this price range, you’d better shop extra carefully for insurance. It might be harder to find a bargain.
Sports Cars: High Horsepower Equals Higher Premiums
Some injuries are self-inflicted, so to speak. In the case of car insurance rates, that describes motorists who get the most speed out of their cars because, well, they can. Vehicles generally referred to as sports cars are built for speed. So are their fast cousins, the muscle car. Both have larger engines and are engineered to go from zero to 60 in a blur. Speed and acceleration are the features that the salesperson and the TV commercials promote first.
If that’s why you bought your automobile, you’ll probably drive it to take advantage of its awesome power. Insurance company underwriters have found that to be statistically true, and your rates are set to reflect that truth.
Cars that travel faster tend to get into more (pricey) accidents. Your sexy little ride might also be more tempting to car thieves. So your insurer gets ahead of that threat with the premium you’re charged. Here are a handful of the fastest — and therefore costliest — 2024 sports cars and muscle cars to insure:
- Audi R8
- Nissan GT-R
- Tesla Model S
- BMW i8
- Dodge Challenger
- Maserati Quattroporte (well, of course)
You deserve to own and operate the car you can afford, and that meets your lifestyle and personal tastes. Just be ready to pay more for insurance to cover speedy sportsters like these.
Imported Cars: Foreign Fees and Repair Costs
Imports can cost more to repair because the replacement parts must often be purchased overseas and shipped to the U.S. The repairs might also have to be handled by mechanics who are specially trained in handling that vehicle. You’ll pay for those shipping fees and higher labor costs. If you’ve made a claim, at least part of that cost gets handed over to your insurer.
If your foreign vehicle is also a luxury or high-performance sports car, you’ll pay more for your coverage based on the logic you’ve already read.
This doesn’t mean all foreign vehicles will cost more. If it’s a lower-priced car with good domestic parts availability, you’ll likely pay much less for your protection. Once again, it’s important to contact your agent and get a cost quote before you’ve even completed your car sale or lease.
On a Budget: Economical Vehicles with Lower Insurance Costs
All other things being equal (more on that later), the less your ride costs, the less it will probably cost you for insurance. Other reasons for lower rates have to do with the automaker’s presence in the U.S. If the manufacturer builds and sells a lot of cars here, replacement parts are usually also in good supply.
Furthermore, there’s no need for mechanics with specialized knowledge since they see your type of vehicle all the time. If they can fix a Ford, they can fix a Honda.
Here, in no particular order, are several more common vehicles that probably won’t set you back considerably when it comes time to insure them:
- Honda Civic
- Toyota Camry
- Toyota Prius
- Nissan Altima
- Ford Escape
- Subaru Outback
The Final Lap: Are Red Cars More Expensive to Insure?
No. That’s a myth based on the fact that the color is a popular one for sports cars, and those models tend to get stopped a lot for speeding. After all, drivers who buy vehicles that go fast tend to do so because they like to … go fast.
But it’s not the color that drives motorist motivation. It’s the type of vehicle they own and the decisions — good or bad — that the motorists make that get them ticketed and raise their insurance rates.
So, if you have a lead foot and own a fire-engine red Ferrari, it might get stopped a lot, and you’ll definitely pay more for coverage. But if it’s a 2018 Ford Taurus of the same color you’re conservatively tooling around town in, you shouldn’t have major concerns about being unable to afford your coverage.
Regardless of the make, model, or even the color of your vehicle, you can get the facts on what you’ll pay for protection even before you shake hands with a car salesperson. Simply call an independent auto insurance agent and let them run the numbers.
Independent agents don’t work for one insurer. Instead, they have contractual relationships with several leading carriers, so they can go shopping for the most affordable rates regardless of how popular your ride is with the insurance underwriters.
In fact, a knowledgeable independent agent can help you find numerous unexpected ways to save on your car insurance in Georgia.
Additional Factors Affecting Your Car Insurance
It’s not just all about the vehicle you’re driving and the insurance classification for cars. That’s a big part of the recipe that goes into what you’ll pay to insure your vehicle, but there’s more to it than that.
Some factors are out of your control. For instance, men tend to pay more than women simply because they have a greater tendency to get into accidents. And men 25 and younger tend to pay the most of anyone for their behind-the-wheel habits. All you can do in that regard is “age out” of the higher rates.
Your Georgia address can be another factor you have less control over. Some communities and even individual streets or neighborhoods can be bigger targets for thieves and vandals than other areas. That will certainly affect your rates.
Even your credit scores can affect your rates. If you have poor scores now, start to do a better job of handling your finances, and it could mean lower premiums.
The biggest cost factor, and the one over which you have the most control, is the way you drive. If you stay accident-free and have few, if any, points on your license for speed violations, reckless driving or similar offenses, you’ll pay less for insurance. Never drink and drive, because a DUI has one of the biggest impacts on your premium.
Observe speed limits, wear your seat belt, drive carefully, and qualify for the most affordable coverage available, no matter your car’s make and model. It really is that simple.