Most expensive cars to insure.

[FC]

Article

Most Expensive Cars to Insure
by David Gelles
Tuesday, August 14, 2007

Eyeing that 2007 Mercedes S Class with all the trimmings? Be prepared to pay through the nose for it.

And for the insurance.

It should come as no surprise that the more expensive the car, the more it will cost to insure it. But just how expensive may come as a shock. For modest coverage ($500 deductibles on collision and comprehensive coverage, $100,000 each for personal and property coverage and $25,000 each for medical and uninsured coverage) on this year's $135,400 Mercedes SL, owners will pay about $22,536 a year.

For pricey cars like this, 20% of the base price is typical. But for those with low monthly payments on high-end cars, that could mean spending more on insurance than on the car itself.

"The cost of the vehicle is primary when setting the price of a policy," says David Wurster, president of Vincentric, a Detroit-based automotive data firm that studies car- insurance costs. Vincentric gets its data from state agencies and averages these figures in compiling its list of most expensive yearly rates. "But there's also the type of vehicle it is. Sports-car owners tend to drive them a little more aggressively."

This, in turn, leads to higher-priced policies. With this in mind, it's no surprise that racy offerings from Mercedes, BMW and Porsche make for some of the most expensive cars to insure.

How It Works
"We start with the manufacturer's suggested retail price (MSRP)," says Kip Diggs, a spokesman for State Farm, the largest insurer of autos in the U.S. Diggs says State Farm then considers how expensive it is to repair each model. The more costly the parts, the higher the policy. For foreign brands with parts from afar, expect to pay more. "From there," Diggs says, "we look at safety features to see if a vehicle qualifies for a safety discount."

Allstate, the second-largest U.S. car insurer, also considers the MSRP, but places more weight on a policyholder's driving record.

"Pricing has more to do with the driver than the car," says spokesman Raleigh Floyd. "If there are two drivers with the same car, the driver with accident histories will have a higher rate. He has shown himself to be a higher risk." Those with a penchant for wrecking Ferrari Enzos on California's Highway 1, for example, can expect to pay more.

Age is also a factor. "A 17-year-old driver is going to be more expensive to insure than a 40-year-old with a family," says Floyd. "Experience counts. It counts a lot."

There are some anomalies in the ranking.

"You would think a Corvette convertible would be hideously expensive to insure," says State Farm's Diggs. "But that car is involved in very few accidents, so it's fairly low." This is because research shows Corvettes typically aren't driven every day.

More utilitarian models, like the Toyota Camry, however, can be more expensive to insure because with more road time, they are more likely to be involved in an accident. Vincentric doesn't collect data on exotics like Ferraris and Lamborghinis because, says Wurster, there are too few owners to make the data useful.

Policy pricing also has to do with where a car is garaged, with urban areas considered higher-risk. "In a more concentrated area, your chances of bumping into something are higher," says Floyd. "Jersey's going to be on one end of the spectrum, and a less populous state is going to be on the exact opposite."

But if you have a hundred grand to spend on a car, you're probably not worrying about insurance.

"For people of that caliber," says a salesman at Mercedes Benz Manhattan, "the cost of insurance really isn't an issue."

Copyrighted, Forbes.com. All rights reserved.

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$20K a year in insurance? F-that.

Actual list

[ff]

Ouch. Better cross the S Class off my shopping list.

[Nick M3]

Uh. Where the fuck are they getting their data?

I mean, my parents pay about $1K/year to insure their SL55 AMG. (It used to be less when my Mom was the primary driver.) So clearly, they've done some dumbass things to get the numbers listed in that article. And needless to say, they've got a hell of a lot more coverage than the bullshit numbers listed there, too.

[bren]

My Corvette isn't all that cheap to insure.

[FC]

Originally Posted by Nick M3

Uh. Where the fuck are they getting their data?

I mean, my parents pay about $1K/year to insure their SL55 AMG. (It used to be less when my Mom was the primary driver.) So clearly, they've done some dumbass things to get the numbers listed in that article. And needless to say, they've got a hell of a lot more coverage than the bullshit numbers listed there, too.

Yeah, hence the

They list a $90K 911 (a low-option 997S?) as costing $17K a year to insure.

They are on crack.

[rumatt]

Originally Posted by FC

But if you have a hundred grand to spend on a car, you're probably not worrying about insurance.

"For people of that caliber," says a salesman at Mercedes Benz Manhattan

Nice touch.

Was this article written by a member of the fest 6er forum?

[dredmo]

I can't help but laugh at this guy. There's no way in hell he knows what he's talking about, and if he does, he is lying through his teeth.

[lupinsea]

Those with a penchant for wrecking Ferrari Enzos on California's Highway 1, for example, can expect to pay more.

No shit? I guess if you're going to crash your Enzo, do it at the track.

[Sharp11]

When I was shopping S2000's, the insurance was cheap as hell.

The Z4 was only a little more......

But this three series convertible is very expensive to insure......go figure, there is plenty of truth in the article, of course it can't cover everyone in every single circumstance....jeeeze guys

Ed

[Sharp11]

Originally Posted by stuka

The only valid point in the whole article is the explanation of why some high performance cars cost less to insure than say, a commuter Camry that gets driven 120 miles a day.

Ummm, that was the entire point of the article

Ed