Owning a high-performance vehicle is exciting. Whether it's the roar of the engine, the sleek design, or the thrill of taking tight corners, these cars are designed to give their drivers an exhilarating experience.
But with great power comes great responsibility – and higher insurance premiums. If you're considering the purchase or already own a high-performance vehicle, understanding your insurance options is crucial, especially if you're under the age of 25.
In this guide, we'll walk you through what makes a vehicle "high performance," the challenges of insuring one, and some tips for managing those costs.
WHAT IS A HIGH-PERFORMANCE VEHICLE?
A high-performance vehicle generally refers to cars that deliver more power, speed, and superior handling compared to the average car on the road. These vehicles are built for enhanced acceleration and can reach top speeds quickly, making them a favorite among car enthusiasts.
But they're not just limited to race cars or exotic brands. Some everyday carmakers, like Ford, BMW, and Audi, offer models that fall under the high-performance category. A few factors that typically define a high-performance vehicle include:
- Horsepower: High-performance cars often have significantly more horsepower than regular vehicles, ranging from 300 horsepower to over 700 in extreme cases.
- Engine Type: Turbocharged engines, V6s, V8s, and larger engines typically signal high performance. These engines allow for faster acceleration and better overall speed.
- Suspension and Braking Systems: These vehicles are built with superior handling in mind. Upgraded suspension and braking systems allow them to perform well at high speeds or on challenging terrain.
- Price: High-performance vehicles often come with a hefty price tag, thanks to the advanced technology and premium materials used in their construction.
Some examples of high-performance vehicles include models like the Chevrolet Corvette, Porsche 911, Ford Mustang GT, and BMW M3.
WHY IS INSURING A HIGH-PERFORMANCE VEHICLE MORE EXPENSIVE?
Now, let's get to the heart of the matter: auto insurance. High-performance vehicles are typically more expensive to insure, and this is due to several key factors:
Cost of Repairs
High-performance cars usually require specialized parts and expert labor to repair. If you get into an accident, the cost to fix even minor damage can be significantly higher than for a regular vehicle.
Higher Risk
Insurers see high-performance vehicles as inherently riskier. They're statistically more likely to be involved in accidents because they can reach high speeds and are often driven aggressively.
Theft
High-performance cars are attractive to thieves. If your vehicle is a hot commodity, expect insurance companies to charge higher premiums to cover the increased risk of theft.
Value
These cars generally have a higher value, which means the potential payout for a total loss is greater. Insurance companies charge more to compensate for that risk.
Driver Profile
Insurers look at who is driving the vehicle. Younger drivers, particularly those under 25, are seen as more likely to take risks or get into accidents, so their premiums are higher across the board.
INSURING A HIGH-PERFORMANCE VEHICLE UNDER 25: WHAT YOU NEED TO KNOW
For drivers under 25, insuring a high-performance vehicle can be incredibly challenging. This age group is already considered high-risk due to a lack of experience and the tendency to engage in riskier driving behaviors. Adding a high-performance car to the mix makes you even more of a liability in the eyes of insurance companies.
Here are a few important things to keep in mind:
Expect to Pay More
If you're under 25 and own a high-performance vehicle, you'll likely pay significantly higher premiums than an older driver with the same car. In fact, some insurance companies may refuse to insure you altogether, depending on the vehicle and your driving history.
Consider Your Driving Record
A clean driving record can help mitigate some of the costs. If you have tickets, accidents, or any previous claims, your premium will increase even more. Conversely, demonstrating responsible driving habits can lead to discounts.
Check for Age-Based Discounts
Some insurers offer discounts once you hit certain age milestones or after maintaining a clean driving record for a set period. If you're approaching 25, it's worth asking about potential rate reductions as you age.
Take a Defensive Driving Course
Some insurance companies offer discounts to drivers who complete an accredited defensive driving course. This demonstrates that you're improving your driving skills, which might lower your rates.
Bundling Insurance
If you have other insurance policies like renters or home insurance, consider bundling them with your auto insurance. Insurers often offer discounts to policyholders who have multiple policies with them.
HOW TO LOWER INSURANCE COSTS FOR HIGH-PERFORMANCE VEHICLES
While insuring a high-performance vehicle will always cost more than insuring a regular sedan, there are steps you can take to reduce your premiums:
Shop Around
Different insurance companies have different policies when it comes to high-performance cars. Don't just settle for the first quote you get – compare rates from multiple insurers to find the best deal.
Increase Your Deductible
Raising your deductible – the amount you pay out-of-pocket before insurance kicks in – can lower your monthly premium. Just make sure you can afford the higher deductible if you ever need to file a claim.
Consider Usage-Based Insurance
Some insurance companies offer pay-as-you-go or usage-based insurance. If you don't drive your high-performance vehicle often, this could be a good way to save money. Your premium is based on how much and how well you drive.
Add Security Features
Installing anti-theft devices or a tracking system can lower your premiums. Insurance companies like to see that you're taking steps to protect your vehicle from theft or damage.
Garage Your Vehicle
Keeping your car in a garage can lower your insurance rates. A garage reduces the risk of theft, vandalism, and weather-related damage; all of which can lead to a lower premium.
Insuring a high-performance vehicle, especially if you're under 25, comes with its challenges. However, understanding the factors that affect your insurance premium and exploring ways to reduce those costs can make owning one more manageable. While the thrill of driving a high-performance car may come at a higher price, smart insurance decisions can help ensure you're fully protected without breaking the bank.
If you need help finding the best car insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get an auto insurance quote online now.
