Reader’s Question:

Hi, I recently purchased a high-performance vehicle here in Illinois. Is it true that my car insurance rates will be off the roof?

Tyler

Chicago, IL

Having a high-performance, top of the line vehicle will certainly mean substantially higher auto insurance rates for you. Unlike regular types of vehicles there are a few reasons why a performance vehicle (sports cars, racing cars etc.) are seen by car insurance providers as costlier to insure, namely:

Car Theft
Expensive, top of the line vehicles like sports, performance and luxury vehicles costs higher to insure due to its popularity among car thieves. Since you’re getting car insurance to protect the monetary value of your asset there in Illinois, it will cost the car insurance provider more to replace or reimburse you should the vehicle get stolen or lost. Naturally, they will pass along this increased risk to you in the form of bigger insurance premiums to compensate for the risk.

Expensive Repairs
Since its a top of the line vehicle, repair and replacement of parts will be expensive as well. Unlike regular vehicles, car parts would need to be specifically ordered and extensive repairs would need to be done by specialist in order to maintain the quality and worth of the vehicle.

It may prove beneficial for you to get car insurance from a provider specializing in niche market insurance. Most of the time the coverage and rates you get are tailor fit to your particular type of vehicles need as compared to what a general insurance provider can offer.

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