TRUE OR FALSE: The Luxury Car Insurance Myth

Luxury cars cost more, right? Right-- for the most part, that is…

Insurance policies are built on dozens of complex factors and each factor has its own individual complexities. This can mean different drivers in identical cars can have as disparate rates as identical drivers in different cars. It’s a confusing system, but it has simple rules. Refer to the scenarios below to see if your luxury, high-end or performance vehicle will truly cost more to insure.

Older cars are always cheaper to insure-- FALSE.

While typically an older car’s overall value is lower than that of a newer car, some conditions can upset that balance. Of course a cheaper car is costs less to replace, but an insurer can still charge higher premiums for a vehicle that lacks modern safety features or if it is a commonly stolen make or model.

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If I drive safely, my high-end vehicle can be less expensive to insure-- TRUE.

Insurance policy prices are not just tied to the type of vehicle you drive-- your driving habits are likely the most influential factor when it comes to determining your premiums. A long record of safe driving is the most reliable way to get a break on your insurance costs.

A basic vehicle model is always cheaper to insure than a luxury vehicle-- FALSE.

Depending on year and make, a low-end vehicle with good resale value can cost as much to insure as a high-end vehicle. If you are buying used, a vehicle with a problematic claims history will cost more to insure regardless of make, model or options.

It’s true that car specifications can lead to higher insurance costs, there is definitely grey area and wiggle room tied to a variety of factors. Consult with your insurer and the professionals here at ARC Insurance to determine if you are paying too much for your vehicle policy. Our experts can customize an insurance plan to address your needs, vehicles and driving history-- all while getting you the best deal possible.

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