Not all vehicles are created equal when it comes to insurance costs. Some cars come with significantly higher insurance premiums due to their performance, value, theft risk, or repair costs. Understanding what makes certain vehicles expensive to insure can help you make informed decisions when purchasing a car.
Why Some Cars Cost More to Insure
Insurance companies assess risk based on historical data and vehicle characteristics. Several factors can drive up insurance costs significantly:
High Performance
Vehicles with powerful engines and high-performance capabilities typically cost more to insure because:
- They enable higher speeds and more aggressive driving
- They are involved in more severe accidents statistically
- They attract drivers more likely to take risks
- Repairs often require specialized parts and expertise
High Theft Rates
Some vehicles are disproportionately targeted by thieves, significantly increasing comprehensive coverage costs. The Insurance Bureau of Canada publishes annual data on the most stolen vehicles in Canada. Vehicles on this list will have higher insurance premiums due to the elevated theft risk.
Expensive Repairs
Vehicles with specialized components, imported parts, or complex systems cost more to repair after an accident. This directly increases collision and comprehensive coverage costs. Factors include:
- Aluminum body panels instead of steel
- Specialized electronic systems
- Limited parts availability
- Requirement for certified technicians
High Replacement Value
Expensive vehicles cost more to replace if they are totalled in an accident. This higher replacement value translates directly to higher premiums for comprehensive and collision coverage.
Vehicle Categories That Typically Cost More to Insure
Sports Cars
Sports cars consistently rank among the most expensive vehicles to insure. Their combination of high performance, expensive repairs, and association with aggressive driving leads to elevated premiums. Even entry-level sports cars from manufacturers like Ford (Mustang), Chevrolet (Camaro), or Dodge (Challenger) can carry significant insurance costs compared to similarly priced sedans.
Luxury Vehicles
Premium brands like BMW, Mercedes-Benz, Audi, and Lexus typically cost more to insure than mainstream brands. This is due to:
- Higher purchase and replacement values
- Expensive original equipment manufacturer (OEM) parts
- Specialized repair requirements
- Advanced technology that is costly to repair or replace
High-Performance SUVs
Performance-oriented SUVs combine the expense of luxury vehicles with powerful engines. Models like the BMW X5 M, Mercedes-AMG GLE, or Porsche Cayenne carry premium insurance costs.
High-Theft Vehicles
Certain vehicles are consistently among the most stolen in Canada. Full-size pickup trucks and some SUV models frequently appear on most-stolen lists due to their value for parts and overseas export. If you drive a high-theft vehicle, expect to pay significantly more for comprehensive coverage.
Exotic and Supercars
Vehicles from manufacturers like Ferrari, Lamborghini, McLaren, and Porsche represent the highest tier of insurance costs. These vehicles require:
- Specialized insurance policies
- Agreed-value coverage
- Exclusive repair facilities
- Parts that may take weeks or months to obtain
The Impact of Modifications
Vehicle modifications can significantly increase insurance costs:
Performance Modifications
- Engine upgrades and turbocharger kits
- Suspension modifications
- Aftermarket exhaust systems
- Performance chips and tuning
These modifications increase both the value of the vehicle and the risk of aggressive driving.
Cosmetic Modifications
- Custom paint and body kits
- Aftermarket wheels
- Interior upgrades
- Audio systems
While less impactful than performance modifications, these still increase the vehicle's value and replacement cost.
How to Manage High Insurance Costs
If you own or are considering a vehicle that is expensive to insure, there are strategies to manage costs:
Shop Around Extensively
For expensive-to-insure vehicles, the difference between insurers can be substantial. Some insurers specialize in luxury or high-performance vehicles and may offer more competitive rates.
Consider Usage-Based Insurance
If you drive your expensive vehicle conservatively and infrequently, telematics programs can help demonstrate your low-risk behaviour and potentially reduce premiums.
Increase Your Deductible
If you have the financial means to cover a higher deductible, increasing it can lower your premium. This is especially impactful on high-value vehicles where coverage is expensive.
Secure Your Vehicle
For high-theft vehicles, taking security precautions can help:
- Park in a secure, enclosed garage
- Install approved anti-theft devices
- Use tracking systems
- Consider steering wheel locks and other visible deterrents
Bundle Policies
Multi-policy discounts can provide meaningful savings, especially when your base premium is high.
Before You Buy
Always get insurance quotes before purchasing any vehicle, especially if you're considering a sports car, luxury vehicle, or model known for high theft rates. The difference in insurance costs between vehicles can be hundreds or even thousands of dollars annually.
Want to know what you'll pay? Get your free car insurance quote and see the actual cost for any vehicle you're considering.