What Types of Cars Increase the Cost of Insurance?

Certain types of vehicles are considered high-risk by automobile insurance companies due to various factors such as their value, powerful engine, rarity of parts, or modifications made. As a result, the cost of insuring these vehicles can be substantially higher. While extreme examples exist to emphasize this point, even opting for a sportier model from a specific make can often lead to increased premiums compared to choosing a more family-oriented model.

This discrepancy becomes more pronounced when the driver has a history of driving violations or is considered high-risk. For instance, a middle-aged driver with a clean driving record may experience only a slight increase of a couple of hundred dollars in premiums when opting for a sporty model. However, a teenager in a similar situation may face a substantial increase of a couple of thousand dollars in insurance costs.

Insurance companies take into account factors such as the driver’s age, driving record, location and the characteristics of the vehicle when calculating premiums. It is important to note that the higher premiums associated with high-risk vehicles reflect the increased likelihood of accidents or theft, as well as the potentially higher costs of repairs and replacement parts. Therefore, drivers should consider these factors and their personal circumstances when selecting a vehicle and obtaining insurance coverage.

Why Certain Types of Vehicles Are More Expensive to Insure:

Often, Insurers are concerned with specific features and they increase rates when they are rating a car with such features. In the following discussion, we will explore the reasons behind this practice and identify the particular characteristics of an automobile that can lead to an increase in insurance costs.

  1. Make and Model: Luxury cars like Mercedes S-Class, Audi R8 or BMW 7-Series can significantly raise insurance costs due to their expensive replacement parts, repair expenses, and higher theft rates. In contrast, vehicles with lower replacement costs, such as minivans, station wagons, and sedans generally have lower insurance premiums.
  2. Engine Size and Speed: Vehicles with powerful engines, like sports cars and high-performance vehicles like Porsche Panamera and Maserati Quattroporte are deemed riskier to insure due to their potential for higher speeds and increased accident likelihood. As a result, these cars typically come with higher insurance premiums. Even going for a coupe instead of a sedan from the same manufacturer and for the same year can increase your premiums.
  3. Repair Costs: Certain car models, especially German makes like Volkswagen, BMW, and Audi, and Tesla have expensive parts and advanced technology, leading to higher repair costs. Consequently, insurance companies charge higher premiums for these vehicles in comparison to typically popular automobiles with plenty of parts and easy to repair.
  4. Safety Ratings: Vehicles with high safety ratings tend to receive lower insurance premiums because they can withstand collisions better. On the other hand, certain vehicles are made with lighter material to increase their speed and performance. They sustain substantial damages in crashes and therefore cost more to insure. Most high-performance cars are likely to suffer large damages in accidents.
  5. Theft Rates: Cars with higher theft rates are riskier to insure. The likelihood of a car being stolen directly affects its insurance premium. Staying informed about theft rates, as provided by the National Insurance Crime Bureau’s Hot Wheels report, can help car owners assess potential risks.
  6. Modified Vehicles: Modifying your vehicle, such as adding a turbocharger, modifying the exhaust system, or installing custom body kits, can increase the risk associated with your car. Insurers may perceive modified vehicles as more prone to accidents or theft, resulting in higher premiums. Informing your insurer about any modifications is crucial to ensure proper coverage.
  7. Rare Vehicles: Owning a rare vehicle can significantly raise insurance costs. Limited availability of parts and specialized repair requirements contribute to higher insurance premiums for these unique automobiles. Examples of rare vehicles, such as the Bugatti Veyron, Lamborghini Aventador, Ferrari LaFerrari, and Aston Martin DB5, command high insurance premiums. It is advisable to work with insurance providers specializing in high-value and collector car insurance to ensure appropriate coverage for your rare vehicle.

Other Key Factors Affecting Auto Insurance Rates

Car insurance rates are influenced by various factors beyond particulars of the vehicle. Insurance providers consider factors like location, where population density, climate, and claims impact costs. Age plays a role, as younger and less experienced drivers are viewed as riskier and therefore pay higher premiums. Credit history also matters, with a high credit score resulting in lower rates, while a poor score leads to costlier premiums. Driving record, including speeding tickets and at-fault accidents affects insurance costs. Marital status and gender also impact rates, with married individuals and women typically paying less. Lastly, the chosen deductible influences premiums, as selecting low deductibles result in higher costs.


The type of car you drive plays a significant role in determining your auto insurance rates. More expensive cars, vehicles with higher horsepower, and models with higher theft rates often lead to higher insurance premiums. Conversely, cars with favorable safety ratings, and lower repair costs tend to have lower insurance costs. Additionally, factors such as location, age, credit history, driving record, marital status, and deductible choice also influence your auto insurance rates. It’s essential to consider all these factors when choosing a vehicle and obtaining insurance to make an informed decision and potentially save on insurance costs.