Insurance plays a major part in determining the overall cost of car ownership. Your car insurance premium accounts for around 11% of the net ownership cost over five years. Various factors rule when deciding on an insurance premium, and one of them is surely the horsepower of your dream steam. The higher the horsepower, the higher the insurance rate.
Bigger power, higher speed
This is one of the most important reasons why higher-powered cars cost more to insure. More horsepower signifies increased speed, which in turn accelerates the chances of driving at a faster pace than usual. A faster pace increases the threat of accidents to a great extent, and hence, the insurers will generally tag you as a costly client here. No wonder a 4-cylinder vehicle with a somewhat moderate engine would cost less to insure than a 6 or 8-cylinder vehicle.
More risks of accident
This point is in conjunction with the first point mentioned here. High-powered vehicles generally counter more crashes compared to their low-powered counterparts. The basic reason here is the mind-blowing speed these cars secure, and you are always up for a rush when you have the steering of a fancy sporty steam.
Moreover, high-powered vehicles are usually prized possessions and saved just for weekends or special trips. They are not taken out regularly as primary household cars, and hence, it takes time for the driver to settle with the flashy car’s typical driving conditions. Now, when you take up a high speed on a steering that you are not so familiar with, it’s possible to lose control.
Bigger Damage
The damage caused by a higher-power car is always greater than that caused by a regular vehicle with moderate horsepower. This is because higher horsepower means larger force, which leads to bigger blows for the 3rd party car or the passengers in it. According to market reports, the damage or injury claims made by accidents from high-power cars are 22% costlier than damage claims from regular cars.
Theft
High-powered cars are some of the flashiest models on the road, attracting undue attention. These flamboyant vehicles are a favourite of thieves and burglars, which makes them costlier options for insurance providers.
High repair costs
High-powered cars carry parts of higher specifications, and hence, repairs are always more expensive here. Moreover, repairing a sports car or such premium wheels requires special labour attention. All these together make high-power cars a pricey option for insurance providers, and hence, they are always looking to place higher premiums on cars with greater horsepower.
However, don’t let the higher insurance costs debar you from enjoying your dream ride on a higher-powered sports car. The insurance cover is a much-needed safeguard to ensure the best experience with your great wheels. The good news is that there are a number of ways by which you can somewhat lower the insurance premium.
Tips on saving on high-powered car insurance
Secure your car
As mentioned earlier, higher risks of theft play a key role in upping the insurance costs of high-powered vehicles. Thus, strong security measures from your side that can reduce theft attempts on the vehicle would somewhat relieve the insurance providers, and they would be happy to lower down the premium rate. You can power up the car with theft alarms or immobilizers. Car GPS trackers that can notify about the exact location of the car in real-time would be handy in tracing the vehicle in case it’s stolen. The point is especially important if you are staying in a theft-prone neighbourhood.
Moreover, the security of your car also depends on how you store it. A car left out all night on the road would definitely fetch higher insurance rates than a car stored in a garage.
Reduced mileage
This is another important tip when you are looking to save on the high insurance costs of your high-powered car. The more mileage you have, the higher the risks of accidents and, consequently, the claims. Thus, the insurance companies look closely at the car’s mileage before deciding on the insurance rate. Maintaining a low limit on annual mileage specifications is advisable as you choose an insurance policy and try to stick to it to enjoy lower insurance rates throughout. However, if you ever need to breach the limit, don’t forget to inform your insurer.
Add a seasoned driver
The driver’s age is a big criterion when deciding on insurance, and more so when it comes to high-powered cars. Insurance providers generally consider young drivers as reckless, and the amazing thrill offered by the fast-paced sports cars makes them even costlier for the insurers. Thus, they usually impose elevated rates if a young driver has a high-powered car. But you can reduce the rate here by adding in the name of another driver who is mature and seasoned to the policy. This way, it will convey the message that the car is somewhat in safe hands which will lead to lower rates.
Driving education and clean record
Maintaining a clean driving record is advised to prove that you are a controlled, knowledgeable, and level-headed driver. A poor driving record will eventually raise your chances of higher insurance rates, posing you as an unsafe driver.
Finally, make sure to take a comparative survey while choosing your insurance provider.