When you're in the market for a new vehicle, chances are you're focusing on performance, design, comfort, or fuel efficiency. But one essential aspect that's often overlooked is how your choice of car can impact your auto insurance premiums. While factors like age, location, and driving history play a role in determining your rates, the car you drive is one of the biggest influences.
Insurance companies assess risk based on historical data. If a particular model is associated with frequent claims, costly repairs, or high theft rates, it's going to cost more to insure—no matter how safe or responsible you are as a driver.
In this post, we’ll explore ten cars that can cause your car insurance rates to increase, and the reasons behind those higher premiums.
1. Dodge Charger
The Dodge Charger is known for its bold styling and powerful performance. Many versions of this car are muscle cars with high horsepower, especially in the SRT and Scat Pack trims. Unfortunately, that power translates into higher insurance costs. The Charger frequently ranks among the most stolen cars in the U.S., and its performance-oriented nature means it's statistically involved in more speeding-related incidents.
Why it raises your rates:
2. Tesla Model S
Electric vehicles are becoming increasingly popular, and the Tesla Model S leads the pack in terms of innovation and performance. But those futuristic features come at a cost—especially when it comes to insurance premiums. The Model S is equipped with complex electronics and a costly battery, making repairs far more expensive than traditional cars.
Why it raises your rates:
-
Costly to repair or replace
-
High-tech components increase labor time
-
Expensive battery replacement
3. BMW 7 Series
BMW’s flagship luxury sedan is a statement of status and sophistication, but it’s also a magnet for higher insurance rates. Luxury cars like the 7 Series come with advanced features, custom parts, and powerful engines, which can significantly raise claim costs in the event of an accident or malfunction.
Why it raises your rates:
-
High purchase and replacement cost
-
Specialized parts and repair labor
-
More prone to theft and vandalism
4. Subaru WRX
The Subaru WRX is a sporty, turbocharged sedan popular with car enthusiasts. Its rally-inspired performance makes it fun to drive, but also places it on the radar of insurers. Statistically, the WRX has been linked to aggressive driving and higher-than-average accident rates, especially among younger drivers.
Why it raises your rates:
-
Associated with risky driving behavior
-
Higher accident involvement
-
Performance modifications are common
5. Chevrolet Camaro
Another American muscle icon, the Camaro blends performance and style. But like the Dodge Charger, it often ends up with above-average insurance costs. Insurers consider the driver demographic and performance risks, particularly in high-powered trims like the SS or ZL1.
Why it raises your rates:
-
High performance = higher liability risk
-
Increased likelihood of speeding violations
-
High cost of repairs after collisions
6. Range Rover
Luxury SUVs like the Range Rover are popular among high-income drivers, but they also come with steep insurance premiums. These vehicles are not only expensive to repair, but they also have above-average theft rates and are often involved in high-dollar insurance claims due to their value.
Why it raises your rates:
7. Ford Mustang GT
The Ford Mustang is a staple of American performance, particularly in its GT and Shelby variants. Insurers often flag the Mustang as a higher-risk vehicle due to its high horsepower, common modifications, and an owner base that includes younger, riskier drivers.
Why it raises your rates:
-
Prone to speeding-related accidents
-
Aftermarket modifications increase costs
-
Repair parts can be expensive
8. Mercedes-Benz S-Class
The Mercedes S-Class is the epitome of luxury sedans. From massage seats to semi-autonomous driving features, it's packed with technology that drives up both its sticker price and its insurance costs. Insurers view it as a high-value, high-maintenance vehicle, and that translates to a higher risk profile.
Why it raises your rates:
-
High-value vehicle with expensive tech
-
Luxury brand = higher theft risk
-
Repairs often require dealership service
9. Porsche 911
This iconic sports car is built for speed, precision, and power. Unfortunately, those attributes also make it one of the most expensive cars to insure. With top-tier performance comes increased accident severity and repair costs. The 911 is also associated with high-end claims, including liability for property damage and injuries in performance-related incidents.
Why it raises your rates:
10. Nissan Altima
Surprisingly, the Altima—a mid-sized family sedan—often appears on lists of most-stolen vehicles in the United States. While it isn’t a sports or luxury car, the high theft rate alone can drive up insurance premiums. The Altima’s popularity makes its parts valuable on the resale market, increasing theft incentive.
Why it raises your rates:
-
Frequently stolen in the U.S.
-
Claims for stolen vehicles drive up premiums
-
Popular with younger drivers, who often pay more
Key Factors That Influence Insurance Rates by Car Model
So what makes one car more expensive to insure than another? Insurance companies use data-driven risk assessment models that consider multiple vehicle-specific factors, including:
-
Repair Costs: Luxury and high-performance vehicles often require specialized labor and imported parts.
-
Vehicle Value: The more a car is worth, the more an insurance company stands to lose in a total loss scenario.
-
Accident Statistics: If a particular make or model is involved in more claims or collisions, it’s seen as higher risk.
-
Theft Rates: Cars that are frequently stolen tend to be more expensive to insure.
-
Driver Demographics: Cars popular with younger or riskier drivers often carry higher insurance premiums.
Tips for Keeping Insurance Costs Down
If you’re set on buying a vehicle that could spike your insurance rates, there are still ways to mitigate those costs:
-
Compare Insurance Quotes Before Buying: Get quotes from multiple companies for the specific car you’re considering.
-
Consider Higher Deductibles: A higher deductible can lower your premium, though it means more out-of-pocket expense in the event of a claim.
-
Ask About Discounts: Safe driver programs, multi-policy discounts, and anti-theft device credits can all reduce costs.
-
Avoid Unnecessary Modifications: Performance upgrades can increase your premiums or void your coverage altogether.
-
Maintain a Clean Driving Record: No matter what you drive, a clean record always helps lower your rates.
Conclusion
Choosing a car isn't just a matter of personal style or performance preference—it's also a long-term financial decision. The model you choose can significantly affect your insurance rates, sometimes adding hundreds or even thousands of dollars per year to your total cost of ownership.
While many of the vehicles on this list are admired for their power, luxury, or cutting-edge design, they also carry a higher risk in the eyes of insurers. Whether it's due to higher repair costs, frequent theft, or a statistical link to riskier driving behavior, these ten cars can drive up your premiums.
Before making your next purchase, take a moment to consider not just what it costs to buy the car, but also what it will cost to insure it. A little research now can save you a lot of money down the road.
Thinking about a new ride? Compare insurance rates before you buy to avoid surprise costs. Peace of mind starts with being informed.