What cars increase the cost of insurance?

Why is insurance higher for newer cars? The cost of the car, whether it's a type of car that's often stolen, and higher profile risks are some of the most common factors increasing insurance.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: May 4, 2022

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Here's what you need to know...

  • More expensive cars cost more to insurance due to the high cost to the insurance company to fix after an accident
  • The amount of horsepower a vehicle has can spike rates
  • The rate of theft for a vehicle can increase your insurance rates

The type of car you drive can have a significant impact on the total cost of insurance. A general guideline is that the more a car costs to buy, the more it will cost to insure.

Is insurance higher for newer cars? Before buying a car is the ideal time to shop and compare the cheapest rates. To this end the factors and specific cars that inspire high rates are discussed below.

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What factors affect premium price?

More expensive cars cost more to insurance due to the high cost to the insurance company if they have to fix a high priced car after an accident.
The amount of horsepower a vehicle has can spike rates, since more horsepower, means more speed; that leaves the potential for more accidents and more speeding tickets.

Add to this scenario a young and inexperienced driver and you are making the insurance companies nervous. In essence, you are paying for their confidence.

Are you looking for a list of cars that will significantly raise the cost of insurance changes every year?

Currently, the list for 2010 models that raise the roof on insurance prices include:

  • Porsche Carrera GT2
  • Mercedes S65
  • Dodge Viper
  • Porsche Panamera Turbo
  • Mercedes CL600

Cars from other years that will cost you a pretty penny to insure include the Mitsubishi Lancer Evolution, the convertible Jaguar XK, and the Honda S2000 among others.

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Why is insurance more expensive for newer cars?

The reason that an extremely expensive luxury vehicle will cause your auto insurance rates to rise is because of the risk that the insurance company must take in insuring the vehicle.
This high risk is because there is a high replacement cost associated with the car if it is stolen or totaled in an accident.

Car insurance companies must have the financial resources available to cover the costs when an expensive vehicle needs to be replaced or fixed. Parts are more expensive and are often more difficult to obtain.

This increased potential cost must be offset by the insurance premium, causing higher rates.

Also, if you are leasing an expensive car, your rates might be even higher to cover any potential loss by the leasing company since they technically own the vehicle.

In fact, according to Forbes two of the most expensive vehicles to insure are the Porsche 911 Carrera and the Mercedes-Benz S65 AMG.

Both are very pricey as well, with price tags that are close to $200,000. The rest of the list contains cars with manufacturer’s suggested retail prices of more than $75,000.

Be sure to speak to your insurance company to find out what your rates will be before purchasing or leasing an expensive vehicle.

Other Important Issues in Car Insurance

Another thing that can increase your insurance rates is how often a type of car gets stolen. The number one car for easy theft is the Cadillac Escalade. It is currently seven times more likely than any other car to be stolen.

Other cars often targeted by thieves include the Ford F-250 and the impressive Infiniti G37. Niceties such as DVD players and GPS devices installed in cars can make them a hot target for a thief.

With close to a million cars being stolen every year in the USA alone, you can understand the worries of insurance companies, and why rates for hot ticket cars tend to be higher.

The least expensive 2010 car to insure was the Mazda Tribute and the Dodge Caliber. Other cars with low insurance rates include the Volvo XC902, Chevrolet Malibu, the Buick LeSabre, and the Ford Taurus.

What helps lower the auto insurance rates on these cars? Features such as lower horsepower and safety devices installed in the car can help bring down costs.

Cars that have been profiled to be family vehicles or a favorite of “soccer moms” tend to be less expensive when it comes to insurance since a lot of the pricing is based on favorable statistical evidence. The insurers believe the more family members you have to take care of, the fewer risks you take!

This means mini vans, station wagons and sedans will be on the lower end of the list. Having a low cost for repairs can also land a car on the less expensive end of the spectrum when it comes to insurance costs.

These types of cars also tend to be the least ticketed, which helps keep your rates down.

Forget about Hummers, Scions, and most Mercedes, if being pulled over is your biggest concern.

These cars are often cited as the most ticketed vehicles on the road today.

Higher Profile Risks

Driving a higher risk profile vehicle statistically costs the insurance companies more money when there is a claim, and so these cars cost more to drive. Things such as a good driving record and even taking defensive driving courses can lower your rates.

If you have a child who is in high school or college, ask about good student discounts. Airbags, anti-lock brakes, and automatic seatbelts can also help to get you a discount. Ask about retirement discounts, loyalty discounts, and any other programs that may apply to you.

There are many lower risk options available in cars that don’t necessarily forfeit style. If you don’t see your ideal car mentioned, or just want a ballpark figure, then it is usually best to contact your insurance agent for more information or a quote.

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How do I keep the cost of my insurance down if I own a car that is typically expensive to insure?

The type of car you drive is not the only indicator for insurance costs. The type of driver you are plays a role. If you do not have a history of accidents or traffic violations, you may be able to keep your insurance cost down even if you own an expensive, fast, or highly sought-after vehicle.

Speak to your insurance agent about other ways you can save money on auto insurance.

Get started comparing car insurance rates with our FREE comparison tool offered below now!

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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