The More Expensive Your Car, The More You Can Expect to Pay for Insurance
Insurers who insure expensive vehicles, particularly luxury vehicles, understand how alluring these automobiles can be.
They attract the attention of most individuals -- even the ones that are not so honest.
Unfortunately, expensive vehicles are desired by car thieves and other unscrupulous individuals because of their value.
If one of these vehicles is stolen or vandalized for parts, it will cost thousands of dollars to replace or repair the car.
No insurance company wants to take on this cost, but they continue to insure luxury vehicles because it is profitable for them to do so.
To make it worth the risk, the insurance company will charge a sizeable down payment plus a high monthly premium to drivers who own expensive vehicles.
This will give them the financial cushion they need to support themselves if they happen to get hit with a claim.
If they do not charge for the risk, they will not have enough cash to cover the cost of a stolen or damaged luxury car.
The price of some expensive vehicles are greater than or equal to the price of some houses on the market.
One claim from a very expensive car can financially cripple and even bankrupt an insurer.
Theft and vandalism are just two issues that concern insurers who write policies for expensive cars.
They also need to think about road hazards, road debris, and vehicle safety matters.
Expensive cars -- especially sports cars -- are built to turn heads.
Looks, speed, and comfort takes precedence over how well the vehicle can withstand a crash or maneuver in the snow.
In the case of a sports car, the only two issues that really matter are looks and speed.
This is problematic for any insurer because good looks attract thieves and speed is what causes accidents.
Drivers with expensive sports cars may wish to drive fast at some point.
When they make this decision, they will be traveling too fast to maneuver around potholes and large objects on the road.
This is in addition to the flying rocks and falling debris they may come across.
People who buy these vehicles rarely think about these matters but insurance companies do.
This is why most expensive car owners experience shock when they receive auto insurance quotes.
The majority of insurance companies will gladly insure an expensive sedan or sports car.
They are extremely popular, they can charge a sizeable premium for the car, and they can enhance their reputation by paying a claim on one of these vehicles.
Even with all these positives, it still makes them nervous to insure expensive cars.
The risk factor is what makes them charge high premiums and high deductibles for these vehicles.
People who purchase these vehicles should take this into consideration before they make a commitment.
They need to look beyond the vehicles style and speed capabilities and think about the total cost of owning an expensive car.
They attract the attention of most individuals -- even the ones that are not so honest.
Unfortunately, expensive vehicles are desired by car thieves and other unscrupulous individuals because of their value.
If one of these vehicles is stolen or vandalized for parts, it will cost thousands of dollars to replace or repair the car.
No insurance company wants to take on this cost, but they continue to insure luxury vehicles because it is profitable for them to do so.
To make it worth the risk, the insurance company will charge a sizeable down payment plus a high monthly premium to drivers who own expensive vehicles.
This will give them the financial cushion they need to support themselves if they happen to get hit with a claim.
If they do not charge for the risk, they will not have enough cash to cover the cost of a stolen or damaged luxury car.
The price of some expensive vehicles are greater than or equal to the price of some houses on the market.
One claim from a very expensive car can financially cripple and even bankrupt an insurer.
Theft and vandalism are just two issues that concern insurers who write policies for expensive cars.
They also need to think about road hazards, road debris, and vehicle safety matters.
Expensive cars -- especially sports cars -- are built to turn heads.
Looks, speed, and comfort takes precedence over how well the vehicle can withstand a crash or maneuver in the snow.
In the case of a sports car, the only two issues that really matter are looks and speed.
This is problematic for any insurer because good looks attract thieves and speed is what causes accidents.
Drivers with expensive sports cars may wish to drive fast at some point.
When they make this decision, they will be traveling too fast to maneuver around potholes and large objects on the road.
This is in addition to the flying rocks and falling debris they may come across.
People who buy these vehicles rarely think about these matters but insurance companies do.
This is why most expensive car owners experience shock when they receive auto insurance quotes.
The majority of insurance companies will gladly insure an expensive sedan or sports car.
They are extremely popular, they can charge a sizeable premium for the car, and they can enhance their reputation by paying a claim on one of these vehicles.
Even with all these positives, it still makes them nervous to insure expensive cars.
The risk factor is what makes them charge high premiums and high deductibles for these vehicles.
People who purchase these vehicles should take this into consideration before they make a commitment.
They need to look beyond the vehicles style and speed capabilities and think about the total cost of owning an expensive car.
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