The Value of Your Car & the Cost of your Insurance

As a matter of fact it is a part of the common knowledge that the level of your car insurance can be linked to the value of your car, directly as well as commensurately. This level or better the classification to a certain level doesn’t limit your car to a date of purchase meaning the car doesn’t necessarily need to be brand new to be more valuable. Let us, for example, compare a classic 1960s Ford Mustang to a brand new Ford Focus. It is possible that the car insurance for the Mustang could exceed the insurance costs for the Focus because of two simple reasons stating that the Mustang is a high performance car and that, if the Mustang is in ‘show’ condition, it may be worth more money and therefore be more valuable now than it was when originally purchased.

Car Performance influences Car Insurance

An important factor that adds cost to your car insurance premium is the performance of your vehicle. So due to the reason that a high performance car is in general more entailing costs than a standard model, these costs will be higher than for a comparable brand and age with a lower performance engine.
Again we are using the Ford Focus model to explain the situation because it is a straightforward illustration when it comes to a real evaluation. A basic new Ford Focus Sedan can be bought for approximately $15,000, with a 2.0 liter 110hp engine. However, the Ford Focus with a high performance 2.3 liter 145hp engine will cost at least $18,500.

So this example states that if you demolish a brand new Ford Focus, your insurance company will have to pay more for the high performance car, so your insurance premium is bound to be higher to reflect the increased risk of payout.

Car Insurance Premiums & Old High Performance Cars

When it comes to the performance of a car, insurance companies presume that people with high performance cars are more prunes to accidents due to a higher likelihood of driving fast and taking more risks – therefore, it is a given fact that the premium for your car insurance will rise correlating with the rise of performance of your car.

In addition to this given fact there is another one increasing the risk of accidents – repair parts of sports cars are more expensive than those of standard models. In that case it is very important that you are aware of the fact that if you have bought an older version or a used car and modified it – you will need to inform your car insurance companies because you have automatically increased the value by changing original parts or increasing/ altering its performance. Should you, or someone you know, be an automatic genius that can fit a 300hp V8 engine into your Ford Focus Sedan - then you’ve fundamentally increased the performance of your car and your current insurance may become worthless. To make sure you are on the safe side then, you should ask your car insurance car insurance for a new quota.

Whether you drive an older model of your car or not doesn’t necessarily mean that your car insurance will be lower or higher. The important factor is the value of your car. This value is calculated by summing up the performance, the age and the condition of the car and then results in the premium you will have to pay. A lot of online Car Insurance companies give you highly competitive quotes regardless of the type of car you own