Why Some Cars Are Considered High-Risk and How It Affects Your Insurance

In the world of car insurance, not all vehicles are treated equally. Insurance companies assess risk based on several factors, including the type, make, and model of the car you drive. Cars considered “high-risk” are generally associated with higher insurance premiums, and understanding why can help you make more informed choices when purchasing a vehicle and selecting insurance coverage. This article will explore the reasons behind high-risk car classifications, the effect on insurance rates, and actionable steps to mitigate these costs.

Understanding High-Risk Car Classifications

A car may be labeled as high-risk for various reasons. High-risk cars often fall into specific categories, including:

•Sports and High-Performance Vehicles: Cars with powerful engines, like sports cars, tend to be driven at higher speeds and are more likely to be involved in accidents.

•Luxury Vehicles: High-end cars are often expensive to repair or replace, leading insurers to charge higher premiums.

•Vehicles with High Theft Rates: Certain makes and models are stolen more frequently, which raises the risk for insurers.

•Older or Custom Vehicles: These may lack modern safety features or require specialized repairs, increasing potential costs for insurers.

Common High-Risk Car Models

The following table outlines some popular high-risk models due to their accident rates, theft rates, or high repair costs:

Make & Model	Reason for High Risk
Dodge Charger	High accident rate
BMW 4 Series	Expensive repairs and parts
Toyota Camry	High theft rate
Ford Mustang	High-speed vehicle prone to accidents
Honda Civic	Frequently targeted for theft

Source: National Insurance Crime Bureau (NICB) and Insurance Institute for Highway Safety (IIHS)

Factors That Make Certain Cars High-Risk

1. Performance Capabilities

Cars designed for speed and performance, such as sports cars, are statistically more likely to be driven aggressively. Insurers view these vehicles as high-risk due to their increased likelihood of accidents.

Example: The Ford Mustang and Dodge Charger are popular sports models that often come with higher insurance premiums.

2. Repair and Replacement Costs

Luxury vehicles and models with advanced technology or custom features are more expensive to repair. In an accident, replacing parts or repairing complex systems in a luxury car costs more than it does for a standard sedan.

Example: Models like the BMW 7 Series or Audi A8 have parts and repair costs that far exceed those of standard vehicles, raising their insurance premiums.

3. Safety Ratings and Features

Cars with lower safety ratings and fewer safety features are more likely to result in severe injuries for drivers and passengers, increasing potential medical costs for insurers. Vehicles with advanced safety features, like lane departure warnings, automatic braking, and airbags, are less risky to insure.

Example: Many newer SUVs with advanced safety technology may qualify for lower premiums, while older models without these features could be classified as high-risk.

4. Theft Rates

Cars that are popular targets for thieves are often more expensive to insure. The National Insurance Crime Bureau (NICB) provides annual lists of frequently stolen vehicles, with certain models consistently ranking high.

Example: The Honda Civic and Toyota Camry have historically been popular targets for theft, making them more costly to insure.

How Being Classified as High-Risk Affects Insurance Costs

When a car is classified as high-risk, insurers adjust the premium to reflect the perceived likelihood of a claim. Here’s how the classification affects different aspects of your policy:

•Higher Premiums: The most direct impact is the increased premium. Cars with high-risk classifications often carry premiums that are 20-50% higher than standard vehicles.

•Reduced Coverage Options: Some insurers may limit coverage types or add exclusions for high-risk vehicles.

•Higher Deductibles: In some cases, insurers may require higher deductibles for high-risk cars to offset potential claim costs.

Chart: Premium Increase for High-Risk Vehicles

Vehicle Type	Average Premium Increase
Sports Cars	30-50%
Luxury Cars	25-40%
High-Theft Models	15-30%
Vehicles Lacking Safety Features	10-20%

Source: Insurance Information Institute (III)

Strategies to Lower Insurance Costs for High-Risk Vehicles

If you already own a high-risk vehicle or are considering purchasing one, there are several strategies to help reduce insurance costs.

1. Install Additional Safety and Anti-Theft Devices

Many insurers offer discounts for vehicles with added safety or anti-theft devices. Installing features like GPS tracking, anti-lock brakes, or enhanced airbag systems can reduce the risk profile of your vehicle.

2. Opt for Usage-Based Insurance (UBI)

Usage-based insurance uses telematics to monitor driving habits. Programs like Progressive’s Snapshot or Allstate’s Drivewise reward safe driving behaviors with discounts, regardless of the car’s risk classification.

3. Consider Higher Deductibles

Opting for a higher deductible can lower your monthly premium. While this means more out-of-pocket costs if you file a claim, it’s a viable option to reduce the overall premium for high-risk cars.

4. Compare Multiple Insurance Providers

Different insurers weigh risk factors differently, so it’s essential to shop around and obtain quotes from various companies. Some insurers specialize in high-risk policies or offer more competitive rates for high-risk vehicles.

5. Limit Mileage and Use Your Vehicle Strategically

High-risk cars that are used less frequently often qualify for lower premiums under low-mileage discounts. If you primarily use a high-risk vehicle for recreational purposes, consider a usage policy to help manage costs.

Pros of Reducing Mileage	Cons of Reducing Mileage
Lower premiums if you qualify for low-mileage discounts	Limited use of the vehicle
Reduced wear and tear	May not be practical for everyday needs
Potential eligibility for usage-based policies	Requires accurate mileage tracking

Top Insurance Providers for High-Risk Vehicles

Certain insurance companies offer specialized policies or competitive rates for high-risk vehicles.

Provider	Specialty	Considerations
The General	Known for high-risk insurance policies	Limited coverage options
State Farm	Discounts for safe driving habits	Discounts vary by state
Progressive	UBI program for high-risk drivers	Telematics program monitors driving
Geico	Competitive rates for all vehicle types	Premiums may still be high for luxury models

Long-Term Strategies for Reducing Insurance Costs on High-Risk Cars

Improve Your Personal Driving Record

Insurance premiums often reflect both the car’s risk classification and the driver’s history. By maintaining a clean driving record over time, you may qualify for discounts and potentially transition to standard risk status.

Keep Your Vehicle Maintained

Regular maintenance helps prevent breakdowns and potential accidents. A well-maintained vehicle is less likely to be involved in a mechanical-related incident, which could positively impact your premium.

Explore Classic Car Insurance (If Applicable)

If you own a high-value car that’s used sparingly, such as a classic or antique vehicle, you may qualify for specialized insurance. Classic car policies often come with lower premiums and specific conditions, such as limited mileage.

Evaluate Replacement Cost Coverage Options

Consider reducing or eliminating comprehensive and collision coverage on older high-risk vehicles if their replacement value is low. If your vehicle’s value is less than your deductible or annual premium for these coverages, it may not be cost-effective to carry them.

Pros and Cons of Owning a High-Risk Vehicle

Pros	Cons
Enjoyment of high-performance or luxury features	Higher insurance costs
May offer advanced features or driving capabilities	Limited coverage options
Resale value may be higher in some cases	Higher theft risk for certain models
Possible eligibility for usage-based savings	Expensive repairs and parts

Call to Action: Find the Best Insurance for Your High-Risk Vehicle

Owning a high-risk vehicle doesn’t mean you have to settle for excessive insurance premiums. By taking strategic steps, such as shopping around, installing safety devices, and maintaining a clean driving record, you can reduce costs while enjoying your vehicle. Start today by comparing quotes from top insurance providers, exploring UBI options, and considering higher deductibles to secure affordable coverage that meets your needs.

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Grigor Yovov
Co-Founder and Senior Insurance Consultant

Grigor Yovov is the co-founder of Trendix Insurance and a senior consultant with over 17 years of experience in the insurance and finance sectors. Specializing in car, home, life, and health insurance, he brings a strategic approach to insurance solutions for individuals and businesses. Grigor is dedicated to providing accurate, insightful information that helps users make well-informed decisions about their insurance needs. His deep knowledge of industry regulations and commitment to transparency ensure that Trendix Insurance readers get reliable, up-to-date content.

Vili Yovova
Insurance Specialist and Consumer Advisor

Vili Yovova is an insurance specialist at Trendix Insurance with extensive expertise in personal and family insurance planning. She focuses on helping users understand complex insurance topics and find the right coverage options for their unique needs. With a strong emphasis on transparency and user education, Vili provides detailed comparisons, guides, and insights into the latest insurance trends. Her user-focused content empowers readers to make informed insurance choices confidently.

Michael Johnson
Research Analyst and Content Writer

Michael Johnson is a research analyst and content writer with a background in financial services and a passion for clear, reliable information. At Trendix Insurance, Michael focuses on analyzing insurance products, policy benefits, and market trends to help users stay informed and make educated decisions. His commitment to accuracy and detail ensures that every article meets Google’s E-A-T standards, supporting readers with trustworthy and expert-backed content.