We were looking at Statistic Brain the other day – well, just because we like numbers. They had a listing of the 10 most expensive cars to insure – on average. That made us a bit curious – what was it about the following list of cars that seemed to make them more expensive to insure?
- Mercedes C63 AMG Coupe $5,532
- Audi R8 Spyder Quattro $3,384
- Mercedes-Benz CL600 $3,307
- Mercedes-Benz S600 $2,948
- Audi R8 4.2 Coupe $2,903
- Porsche Panamera Turbo $2,738
- BMW ActiveHybrid 7 $2,701
- Porsche 911 Turbo / Convertible $2,674
- Mercedes-Benz CL65 AMG $2,669
- Mercedes-Benz CL63 AMG $2,615
- Jaquar XKR Supercharged Convertible $2,585
- Mercedes-Benz S63 AMG $2,542
- Audi A8 L Quattro $2,513
- BMW 750i $2,430
This listing was pretty much confirmed in an August article in Forbes magazine that has some pretty nice pictures to go with it.
We know that your Washington auto insurance premium is influenced by biological factors like age and gender and that it is also influenced by behavioral factors like driving record, length of commute or miles driven per year and marital status. Premiums can also be influenced by where a vehicle is garaged and the vehicle’s make and model. Now, how do you figure out an “average” rate if there are so many variables? The answer comes from insure.com which used a “standard” to figure out average premium. The averages are based on a standard such as a 40-year-old male driver who commutes 12 miles to work, with policy limits of 100/300/50 and a $500 deductible on collision and comprehensive. This approach provides a fair comparison across companies. It also means that your premium, if you have one of these cars, may vary from this average number.
So, if we remove biological, behavioral and geographical variables and the insurance premiums are still different, how do we account for the difference? The car you drive is associated with a certain amount of risk so far as underwriters are concerned. Risk here In the eyes of an insurance carrier, increased risk means increased potential of payout. An underwriter’s task is to set the premium at a rate that will cover potential claims. If the car you choose is expected to be stolen more often, involved in accidents more often or has parts that are more costly to repair, you can expect a higher premium. The cars on the most expensive list are high-end sports cars. They may be associated with more serious injury in the event of crashes, even with the presence of safety equipment. Smaller and lighter cars don’t absorb the energy of a crash as well as larger cars. The vehicles start with a high price – some in the $100,000 range – so the risk of loss from theft would be a great concern. These vehicles also all have the probability of high costs of repair for even relatively minor damage. Finally, the class of vehicle itself interest into the equation. Mom’s minivan may not corner so well, accelerate as fast or stop as quickly but history suggests that it also will not be driven fast or recklessly. This may not be the case with a vehicle with an engine powerful enough to drive a small plane and fast enough to out run one.
If you are going to buy one of these top ten’s, don’t worry about getting a red one. The notion that red cars cost more to insure is pretty much just an urban legend.