Sports Car Insurance Rates: What’s the Difference?
Q: I went from a 1996 Ford Mustang to a 2003 BMW M3. Since they are both sports cars why did my car insurance rates go up?
AIS Answer: There are many factors that go into your auto insurance premium that it may not be so much about the vehicles.
However, let’s assume that your driving record has remained unchanged and the only discernible difference was the purchase of a new vehicle.
A 1996 Ford Mustang is not a slow car by any means, but the rates are probably less about how fast it is in comparison to the BMW M3, but the age of the vehicle, and total repair costs.
Typically a domestic (American) vehicle will cost less to insure because repair is cheaper. A European import like a BMW M3 will be much more expensive to purchase, and in turn repair. Also, look at residual values. The Mustang will drop substantially in 5 years where the M3 would retain about 40% - 60% of it’s initial value. All of this means more money to repair and replace.
You may want to try shopping around for a better rate if you feel that you’re paying too much for auto insurance. There are many places online that will give you instant quotes, and you can always call or walk into an insurance agents office.
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That M3 is going to be costly! It’s not only super fast, but european and expensive…
If you get a new mustang they can be pretty expensive to insure if you’re a younger male driver…though it’s the same situation with the M3. Both vehicles put out a ton of horsepower, but the M3 is about 2 times the price and that makes it more expensive to insure and repair.
corvettes are expensive to insure as well
german cars are more expensive to insure than japanese cars, and definitely more expensive than american (domestic) vehicles.
I don’t believe you could insure a Ford GT , or Chevrolet Corvette ZR-1 and a BMW M3 and have the BMW be anywhere near the same insurance rates, so really it’s not that domestics are less expensive for car insurance, it’s about the price of the vehicle.