As the owner of a Mustang, you know that driving a high performance vehicle feels like nothing else on wheels. You are bolder, faster, more powerful behind the wheel of your car, than you ever could be if you were driving a sedan, or, heaven forbid, a minivan. Unfortunately, with great performance comes increased insurance premiums, so before you actually start your engine, take a look at your finances and your existing insurance coverage, and decide if you can afford the car of your dreams. Risky Business.
The fact is, performance cars are extremely risky investments for the insurance industry, and there are two main reasons for this: likelihood of claims, and difficulty of replacement.
1. Likelihood of Claims: Analysis of the relevant statistics shows us that the owners of performance vehicles, like the Mustang, are extremely protective of their cars, so even the slightest fender bender is more likely to generate an insurance claim. The insurance industry offsets this by charging more to cover such cars.
2. Difficulty of replacement: High performance cars are also more expensive to replace. Because they tend to be speed demons without a lot of crumple room, even a minor accident will come with more significant damage than the same crash in a more pedestrian car. As well, such cars often sport specialized parts, either from the manufacturer or added after the fact, and while most upgrades can be added to your insurance policy, doing so makes your premium higher, as well increasing the invoice for any repairs.
Reduce Risk – Save Money
Rather than giving up on your Mustang, you can reduce the price you pay for a performance auto insurance policy by reducing the perceived risk attached to your car. Steps you can take include:
· Reduce the likelihood of theft, by keeping your car parked in a locked garage.
· Make your car easier to find by adding a GPS system or LoJack
· Make it harder to steal by adding an alarm system or engine immobilizer
· Keep the mileage low – use another car as a daily driver if possible
· Keep your driving record clean.
Why do these things help? Insurers see the possibility of a car being stolen as the highest risk, so anything you do that reduces the chance of theft, saves you money. Keeping your driving record clean puts you, yourself, into a lower risk category – people who haven’t had accidents, insurers believe, are less likely to have future accidents.
Your Mustang is an amazing ride. Keep the insurance on it from getting amazingly high and use the money you safe for something else, like upgrading the wheels, or improving the engine – just remember to run such changes past your insurer first.