When you renew your car insurance, do you ever think about the factors that impact on the price you pay? This can often be very interesting as many people don’t stop to consider why they pay the price that they do. For instance, one factor that has a big impact on the cost of car insurance is the performance of the car itself.
It can be tempting to think that the better a car performs when you are driving, the less your car insurance will cost. Of course, while things such as how quickly a car comes to a stop when you brake are taken into account, factors such as acceleration and speed also play a role.
This means that even if your car performs well when it comes to braking, any cost benefits on your car insurance can be cancelled out if it has a high top speed and accelerates faster than most other cars – and it can even push the cost of your insurance up considerably.
This is because most cars that have a high top speed and accelerate extremely quickly are high performance cars, and statistically speaking they are more likely to result in insurance claims than cars with a lower top speed and more sedate acceleration. The car insurance companies build this into the insurance that you pay, so if you own a high performance car you are likely to have to pay more to insure it even if you never make use of your car’s capabilities.
Similarly, if you own an old car where the performance has been affected by age and deterioration, you might find you have to pay more to insure it, too. All of this is based on the likelihood of accidents in various types of cars: the higher the risk your car is seen to pose, the bigger the impact on your insurance costs.
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