Bryant

It’s a fact that your car insurance costs and the value of your auto are inextricably linked. It’s as simple as this…The more expensive your auto is, the higher your car insurance premium will be. This isn’t just dependant on whether your car is brand new, either. For example, the auto insurance for a classic 1960s Ford Mustang could exceed the insurance costs for a brand new Ford Focus for two reasons. First, there’s the fact that a ‘Mustang’ is a high performance car.  And second if the Mustang is in ‘show’ condition, it may be worth considerably more now than when it was originally purchased.

Car performance & car insurance.

The performance of your car can be a significant factor in determining the cost of your car insurance premium, too.  Because a high performance car is typically more expensive to buy than a standard model, you can see why the cost of your car insurance could be higher than for a car of an equivalent make and age without a high performance engine.

A simple example is the value of  the Ford Focus models. A basic new Ford Focus Sedan can be bought for about $15,000, with a 2.0 liter 110hp engine. However, the higher performance 2.3 liter 145hp versions cost at least $18,500. If you wreck a brand new Focus, the insurance company will have to pay more for the higher performance auto, so your insurance premium is bound to be higher to reflect the increased risk of payout.

Older high performance cars & auto insurance premiums.

Any high performance car, even an older model, generally will have a higher car insurance premium than a ‘less sporty’ model. Insurance companies presume that the driver of a high performance car is more likely to take risks when driving, increasing the likelihood of an accident. However unfair this might seem, it’s a fact that your car insurance will rise with the performance of your auto.

In addition to the increased risk of an accident, the parts needed to repair a high performance auto are usually more expensive than those for a standard car. Something else you need to be aware of is that if you have bought an older or used car and modified it - you will need to inform your auto insurance company  because you may have increased its value. This includes any modifications that affect the performance of your vehicle. Should you, or someone you know, be a mechanical genius that can fit a 300hp V8 engine into your Ford Focus Sedan - then you’ve radically altered the performance of the vehicle and your current insurance may become invalid; so ask your car insurance company for a new quote.

Having an older model car doesn’t necessarily mean that your car insurance will be lower than if you own a newer vehicle. The premium you’re asked to pay for your car insurance will depend on the age, performance and condition of your car - which add up to the value of your auto. Regardless of the type of car you own,  you should be able to find some highly competitive quotes from online car insurance companies.