Can a Fast Car Raise Your Insurance Rate?

Posted: Friday, May 27th, 2016

When you decide to purchase your next car the total cost of ownership is actually quite a bit more complicated than just the purchase price. When you apply for that auto loan, you’ll also want to consider how much your insurance will cost. What kind of car you drive is going to change how much your insurance will be every month. Find out why a sports car will cost you more to insure than other kinds of vehicles below.

Why Do Fast Cars Increase Your Premiums?

Fast cars cost more to insure – that is a fact. Your insurance premiums are determined via a complicated set of factors that insurance companies use to calculate the level of risk you present as a driver. Driving a car with a lot of horsepower is an indicator for higher risk of accident for those insurance companies, so performance vehicles almost always cost more to insure.

Those insurance companies don’t really care that you have a car with a lot of horsepower – but they do care about how much that fancy sports car will cost to replace or repair. High performance cars are usually more expensive than more mainstream cars, and the high performance engineering involved in those vehicles is complicated and expensive to fix. Combine that fact with the greater possibility of an accident for any vehicle driven fast, and you can see the point of view of the insurance company!

What Other Factors Can Change Your Premium?

So if you’re planning to purchase a new car, you’re probably wondering what other factors might make your insurance premium higher. If any of these apply to you then you might have a higher premium:

  • Moving Vehicle Violations
  • Chargeable Accidents
  • A Low Credit Score
  • Live in an Urban Area
  • Are Single
  • Are Under 25

Drivers of older, less expensive cars can also expect to pay less for insurance. Also, cars with good safety scores generally cost less to insure as well. All of this is something to keep in mind if you’re shopping for your next vehicle.

Find the Best Way to Secure Quality Car Insurance Premiums at Green Light Auto Credit

Contact Green Light Auto Credit online now or give us a call at (800) 200-5551 if you need help planning your next vehicle purchase. We’re happy to help you find the financing and car insurance premium you need to get behind the wheel of your next new car today.