Car Choice Can Make A Big Difference In Insurance

When it comes to driving, most motorists know the best vehicle is simply the one that's safe and dependable. Unfortunately, that vehicle isn't always the most fun to drive. Luxury cars and high-performance models are more fun, but they will also cost their drivers more not only to buy but also to insure.

This might not seem fair, and in a way it's not, but when all the factors are looked at it does make a whole lot of sense. Insurance companies set their rates based on probabilities. When it comes to cars, the probabilities that are examined include a lot of factors that simply are more risky for luxury vehicles and high-performance cars.

A Saturn, for example, will generally be less expensive to insure than a Mercedes Benz and this is so for a whole host of reasons. They include:
* Replacement costs. If comprehensive and collision come into play, the insurance company is saying it's willing to pay fair market value on the car in the event of an accident. Fair market for most luxury cars will obviously be higher than for a regular sedan.
* Likelihood of theft. It's a fact that some makes and models are more likely to be stolen than others. If the car you're looking at is a thief's car de jour, you can count on paying more. Again, this makes sense for an insurance company to have to do. If you buy something that has a high chance of being stolen, expect to pay more.
* Repair costs. Cars that cost a lot to repair, generally cost more to insure. It just doesn't make sense for an insurance company not to charge more in this case for the reasons stated above.
* Safety record. Automobiles that have high safety records tend to cost less to insure. Those that don't do well on industry crash tests can have considerably higher rates.

On the surface it might not seem fair to have to pay a high price for a car only to get hit with what seems like exorbitant insurance rates, but when the situation is looked at closely, it makes a lot of sense. Car buyers need to know the history of their vehicles before they buy if insurance prices are a concern. Those cars that are high targets for theft, cost a lot to replace or repair and even those that don't perform well in crashes could end up costing an insurance company a lot of money. Inasmuch, the company doesn't have much of a choice than charge higher rates to cover itself, too.

The insurance game is a gamble and for those who want to buy luxury cars and high-performance vehicles, it's a price they'll have to pay so the companies can hedge their bets.