When shopping for a new car, most people consider things like fuel efficiency, design, and performance. But one factor that often gets overlooked is how your choice of car can affect your auto insurance premium. While insurance rates are based on many variables—your driving history, location, and age, among others—the type of car you drive plays a major role in determining your insurance costs.
Some cars are more expensive to repair, more likely to be stolen, or statistically involved in more accidents. These factors make them riskier to insure, which leads to higher premiums. In this article, we’ll take a deep dive into 10 types of cars that can raise your auto insurance, and explain why they tend to be more expensive to cover.
1. Luxury Cars
Examples: BMW 7 Series, Mercedes-Benz S-Class, Audi A8
Luxury vehicles are synonymous with high performance, advanced technology, and comfort. But all those premium features come with a high price tag—not just in purchase but also in insurance. Insurers know that repairing luxury vehicles often requires specialized parts and technicians, making claims more costly. In addition, these cars are attractive targets for theft, further increasing the risk.
Why Insurance is Higher:
2. Sports Cars
Examples: Chevrolet Corvette, Porsche 911, Dodge Challenger SRT Hellcat
Sports cars are built for speed and performance, which often means higher accident rates. Drivers of these vehicles tend to be perceived as risk-takers, and the car’s capability to go fast increases the likelihood of severe collisions. Insurance companies use statistical data to determine risk, and unfortunately for sports car enthusiasts, the numbers don’t lie.
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3. Electric Vehicles (EVs)
Examples: Tesla Model S, Rivian R1T, Lucid Air
While EVs are lauded for their environmental benefits, they can also come with higher-than-average insurance premiums. The main reason? Battery technology is expensive to repair or replace, and many EV models include high-end, cutting-edge features that increase the cost of claims. Additionally, fewer specialized mechanics are available, driving up labor costs.
Why Insurance is Higher:
4. High-End SUVs
Examples: Range Rover, Cadillac Escalade, BMW X7
SUVs may offer extra safety features and space, but high-end SUVs in particular tend to raise insurance rates. These vehicles are more expensive to replace, often involved in more significant accidents due to their size and weight, and can inflict greater damage on other vehicles, increasing liability risks.
Why Insurance is Higher:
5. Convertibles
Examples: Mazda MX-5 Miata, Ford Mustang Convertible, BMW Z4
Convertibles are a symbol of fun, freedom, and summer road trips—but not when it comes to your insurance bill. The soft tops make them easier to break into, and they can be less structurally safe in accidents compared to hard-top cars. Additionally, convertibles often fall into the sports car category, combining risks from both types.
Why Insurance is Higher:
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Higher theft and vandalism risk
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Less structural safety in crashes
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Higher repair costs for unique parts
6. Cars Popular with Young Drivers
Examples: Honda Civic, Subaru WRX, Volkswagen GTI
Cars that are affordable and sporty are often popular with younger drivers, who statistically are more likely to be involved in accidents. Because of this demographic trend, insurers often charge more for cars that are typically driven by inexperienced or high-risk groups—even if the car itself isn’t inherently dangerous.
Why Insurance is Higher:
7. Modified or Tuned Cars
Examples: Any car with aftermarket turbochargers, lowered suspension, or performance exhaust systems
Modifications may improve a vehicle's performance or appearance, but they can be a red flag for insurers. Customizations often invalidate factory safety standards, increase the vehicle's value, and suggest aggressive driving behavior. Also, modified parts are more difficult and expensive to replace after an accident.
Why Insurance is Higher:
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Increases performance and risk
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Difficult and costly to repair
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Limited coverage availability
8. Rare or Classic Cars
Examples: 1967 Ford Mustang, 1955 Chevrolet Bel Air, any limited-edition model
Classic cars may be a collector's dream, but they pose unique insurance challenges. They often require specialty parts, which may be hard to find or even discontinued. Additionally, many are driven less frequently, which may reduce liability risk—but repairs and replacements can still cost a fortune.
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9. High-Theft Models
Examples: Honda Accord, Toyota Camry, Dodge Charger
Surprisingly, some of the most common and unassuming vehicles are also the most frequently stolen. Cars with parts that are easy to resell or have minimal anti-theft technology are prime targets for thieves. Insurers keep close tabs on vehicle theft data, and if your car is on the high-theft list, your premiums will likely reflect that.
Why Insurance is Higher:
10. New-to-Market Models
Examples: First-year releases of redesigned models or brand-new lines (e.g., the first model year of a new EV or SUV)
When a brand-new model hits the market, there’s limited data available on reliability, repair costs, and safety performance. This uncertainty makes insurers cautious. Until there’s enough historical data to evaluate risk accurately, they often hedge their bets by charging higher premiums for these vehicles.
Why Insurance is Higher:
Final Thoughts: How to Manage High Insurance Costs
If you’re considering one of these vehicle types but don’t want to break the bank on insurance, here are a few ways to offset the high premiums:
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Shop around for insurance quotes before buying the car.
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Consider raising your deductible to lower monthly premiums.
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Take advantage of bundled policies (home + auto).
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Ask about discounts for anti-theft devices, good driving records, or defensive driving courses.
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Explore usage-based insurance programs if you drive infrequently.
Conclusion
Choosing a car isn’t just about performance, aesthetics, or fuel economy. Your vehicle’s insurance cost is a long-term financial commitment that’s easy to underestimate. Whether you're eyeing a luxury sedan, a sporty coupe, or a brand-new electric truck, understanding how your vehicle type affects your premium can save you hundreds—or even thousands—over the life of your policy.
Next time you hit the dealership, take a moment to consider not just how a car drives, but also how it drives up your insurance bill.
Need help finding affordable insurance for your dream car? Don’t hesitate to compare quotes from multiple providers—it’s the smartest first step toward responsible car ownership.