Many people spend their whole life dreaming about the opportunity to own a luxury car. Typically, these types of cars come equipped with amazing features that will convince any driver that they have driven directly into automotive heaven. However, once they see their insurance rates, they might drop right off cloud nine and back onto the hard floor. Read on to find out why luxury cars are such a bad idea for good insurance rates.
They Are Expensive
One of the biggest reasons why luxury cars are such a bad idea for insurance rates is that they are expensive themselves. Typically, automotive insurance prices are based on the value of the car. Ergo, if you have an expensive car, it is more likely that you will have an expensive insurance policy to go along with it. These inflated insurance rates can make it difficult for you to budget and effectively make your car payments.
They Are More Prone to Damage
Another reason why luxury cars are such a bad idea for insurance rates is that they are more prone to damage. While it may seem like luxury cars have craftsmanship built into them, these cars actually break more often due to the way different parts fit together. Because of this, insurance companies charge an inflated rate to counterbalance the eventuality that your car will need repairs.
They Attract More Tickets
Finally, luxury cars tend to attract more tickets than other types of vehicles. Ticket accrual directly affects your insurance rates by classifying you as a reckless or high-risk driver. While this may not be the case for you, it is true that luxury cars are eye-catching vehicles that become easy targets for any overzealous police officer who wants to hand out a few tickets. After all, what better way to get a bit of extra money than to charge the person driving the most expensive car on the road?
We hope this guide has clarified why luxury cars are such a bad idea for insurance rates. If you are looking to get a great insurance rate, be sure to reach out to a local insurance dealer to find out what rates they can provide you!