The Most Expensive Cars to Insure in 2014!

The Most Expensive Car to Insure

The Most Expensive Car to Insure

Most people think their car insurance premiums cost too much. Every year it feels like the premium is more expensive. Well to give us all some consolation let’s take a look at the most expensive cars to insure!

Every year Insure.com creates a list of the most expensive cars to obtain car insurance for and usually the list is full of expensive sports cars, but sometimes there are exceptions to the rule. This year the list is full of well known brands including BMW, Porsche, Mercedes and even Nissan.

Most of the cars in this list are capable of truly insane speeds and have truly insance price tags attached to their purchase costs. Well unfortunately for the speed freaks that want to drive these kinds of cars the insurance costs are nothing short of astronomical by conventional standards. It turns out that people who like to drive fast also crash a lot! Insurance companies worked that out pretty early on so pumped up premiums on these speed machines.

1. Nissan GT-R Track Edition $3,169
2. BMW M6 $3,065
3. Mercedes-Benz CL550 4Matic AWD $3,019
4. Mercedes-Benz SLS AMG GT $2,986
5. Porsche Panamera Turbo S $2,970
6. Audi R8 5.2 Spyder Quattro $2,917
7. Mercedes-Benz G63 AMG $2,887
8. Audi A8 L 6.3 Quattro $2,869
9. Jaguar XKR Supercharged $2,854
10. Jaguar XK $2,610

Hard to drive
It also turns out that many of these cars are extremely hard to drive! There is so much power behind the accelerator that an operator can be at face melting speeds in a few seconds and not always intentionally.

The cars are extremely twitchy and everything from steering, braking to acceleration are built for the driver who has lightning fast reflexes and the experience to handle a high powered vehicle. Unfortunately many of the people who are wealthy enough to buy these kinds of cars are not incredibly experienced drivers. Some of the cars have safety features which are designed to tame the speed and handling of the car, but operators can turn them off, and many do to experience the “beast unleashed”. Unfortunately when they go into full racing mode they are actually turning off controls that help with vehicle stability and easier handling.

The vehicle that comes in at number 1 is especially hard to tame. The Nissan GT-R track edition is nicknamed “Godzilla” which should scare you enough if the $115’000 price tag hasn’t already. It has a massive 545 horsepower from a v-6 engine and twin turbochargers. The car is really designed for people who want to take their car onto a racing track once every few weeks, and the various electronic controls help tame the beast and keep it safe on conventional roads. It can reach the 200 mile per hour mark, where even professional racing drivers need to be careful, so the average joe could get into serious trouble very easily.

Most of these cars “feel” stable and easy to drive and that is why some people get into trouble – they become over confident and don’t appreciate how quickly the extra speed can turn into a crash, particularly on roads that are not of race track quality. That’s another one of the issues, the speeds that some of these cars are capable of is primarily for the race track and the quality of roads around most towns and cities is much much lower. A sudden pot hole and that Nissan GT-R that felt stable at fast speeds is heading for a tree.

Repair Costs

It also turns out that repairing expensive and exotic cars is quite expensive! The insurance costs reflect the fact that a simple fender bender in a Nissan GT-R might cost $25’000 in parts, because of the advanced mechanical parts and rare body parts involved. Some components must be discarded because they are not metal that can be reshaped, but carbon fiber which shatters on impact and must be replaced after a crash.

So the next time you balk at the cost of comprehensive car insurance for your vehicle, remember the revheads who are forking out thousands every year for a thrilling and dangerous hobby!

The Extra Benefits of Comprehensive Car Insurance

Comprehensive Car Insurance

Comprehensive Car Insurance

A lot of unexpected and unusual events can occur in the real world and not all forms of insurance are equipped to deal with them. For example, many people who were in London for the riots in 2011 saw massive property damage including their cars destroyed by mobs of people. There is also common vandalism where someone might damage or destroy your car for the “fun” of it.

While the vandals might have fun perpetrating the act, it is certainly distressing and annoying to the owners of the vehicles who have to check if their insurance covers acts of vandalism or terrorism. If you have simple collision insurance, these acts will not be covered and you actually need comprehensive insurance to be covered against rioting, vandalism and terrorism.

Comprehensive insurance is the only form of car insurance that will also cover damage that occurs to your car that was not the result of a traffic accident.

Let’s consider the many ways that your car can be damaged, there are many!

Rioting usually involves wanton destruction of anything nearby ad rioters might decide that your car needs to be flipped or destroyed with blunt force! Vandals are similar – they simply decide that your car is a good target for destruction.

Fire can spread from property to your car or it can spread from nearby cars to yours. The car might have a mechanical problem that starts a fire and destroys the vehicle.

Flooding is unfortunately common in recent years and you might suddenly lose your car to a flash flood or water damage could destroy the engine.

Related to flooding, storms could bring down branches or throw debris at your car, destroying or significantly damaging it. With the increase in volatile storms in recent years thanks to global warming, this risk is in fact increasing rapidly. Related to storms, hail damage can also write off your car in the space of minutes.

A slightly more unusual one is animal damage which might occur! While it sounds strange, there are actually a number of cases of animals damaging or destroying cars every year in the United States.

You need to have comprehensive car insurance to guard against these unexpected and sometimes unusual events.

There are a couple of things to be aware of with comprehensive car insurance. The first is that when you get a car loan from a bank, you are expected to obtain comprehensive car insurance. This is to safeguard both you and the financial institution.

After the loan has been paid off and the car is older, many people consider dropping their comprehensive car insurance. However there is actually a lot of risk if you decide to do this, because as cars age they actually can become a greater target for thievery. Older cars are targeted because they are usually easier to break into and the seconds hand parts market is larger for those cars. T

hat means thieves can target the car and scrap it for parts and achieve a large profit. Often the greatest prize to a car thief is not the brand new Mercedes, but the 6 year old Subaru which they can break down into parts and achieve a large profit on.

It’s important to realize that vandals also attack cars indiscriminately. So if your car is brand new or it is 7 years old, they still might decide to vandalize it. That means that maintaining your comprehensive car insurance for a few years more might help you there as well.

So before you consider dumping your comprehensive car insurance, try to remember it covers for a wide variety of unusual and extreme events that most people never see coming!

Americans Without Health Insurance Drop

Uninsured Rate Drops

Uninsured Rate Drops

A new survey indicates that the number of Americans without any form of insurance has dropped dramatically since the introduction of the Affordable Healthcare Act by the Obama administration. That includes millions who have never had health insurance before.

In the last quarter of 2013 the number of adults that lacked coverage was 18% and that figure dropped to 14.7% in the last part of March. That equates to about 8 million people gaing health insurance since September last year. That also adjusts for cancellations of policies that may have occurred when the new laws forced the removal of plans that did not meet the legislation’s requirements.

The poll was conducted by Gallup, who have a long history of monitoring the state of health care in the United States, including the progress of Medicare and Medicaid. The results are a slap in the face to pundits who said the law has not done anything to increase participation in health insurance.

According to Gallup researchers – “The uninsured rate has been falling since the fourth quarter of 2013 … a sign that the Affordable Care Act, commonly referred to as Obamacare, appears to be accomplishing its goal of increasing the percentage of Americans with health insurance coverage,”

Under the Affordable Healthcare Act, insurance companies could no longer turn away sick individuals who may have had pre-existing conditions. Many of the newly insured may in fact be people who could not find insurance previously.

Under the act, in many states low income Americans could also sign up for Medicaid coverage for the first time. The survey doesn’t even cover the full extent of the increase in the number of insured because many Americans gained coverage before September.

An estimated 3 million children gained the coverage of their parent’s health care plans which they retain until they turn 26.

The number of uninsured has always been relatively high in the United States, but it became worse under the George W Bush administration as the economy slid into recession and many people could no longer afford it, or lost their employment.

It may in fact be a number of years before we know the full impact of the Affordable Health Care act, as people adjust their insurance plans and decide on what level of coverage they think is appropriate. There is a distinct possibility that many of the new signatories to health insurance may not remain covered for more than a couple of years and instead return to the pool of uninsured.

In some states certain provisions like the Medicaid changes are also being rolled out late, so there will be a boost to the insured rate there in the coming months. Additionally, many people who began applying for insurance coverage by March 31 may not have actually completed their application and have until April 15 to do so. There could be many more thousands who jumped in at the last minute and will not show up in the insurance figures yet.

Gallup said this may result in another drop to the uninsured rate in the 2nd quarter of 2014.

According to the survey, the greatest gain to the insured rate was in African, Latino households who could suddenly access cheaper health care plans. Households earning less than $36’000 a year also demonstrated a large gain in insurance rates. They were all groups that the Obama administration did expect large gains in, so they have come to fruition.

Gallup isn’t the only poll reflecting these gains with recent polls by the Times and Rand Corp also showing a drop in the uninsured rate.

Common Car Insurance Myths

Car Insurance Myths

Car Insurance Myths

There is a lot of fine print on most car insurance contracts and most people could not be bothered to read all of the details of the contract. Instead, most people know the broad points of insurance agreements but on the finer points they carry a number of misconceptions and beliefs that they have garnered from talking to other people about insurance.

Let’s take a second and dispel some of these common myths about car insurance!

The color of cars affects the cost of insurance

Some people believe that cars of a certain color are more expensive to insure, with darker colors costing more than brighter colors. Some people also believe that red cars are the cheapest because they are the most visible on the road. Others believe red cars are the most expensive because they attract the attention of police more often. Not true! Color does not affect insurance costs.

A person’s driving record is the only factor in determining car insurance rates

This is incorrect. There are many variables that go into calculating your insurance rate. Other variables include your age, the age of your car, the type of car, intended use for the car, the location of your car and your credit history. Some insurance companies even look at the grades of students to help in their premium calculations!

Comprehensive Insurance covers mechanical problems

No it doesn’t! It will cover the car for theft, vandalism, floods and more, but it will not cover the cost of a new clutch if the one in your car fails!

Eventually my good driving record will make my premium come down

There is some truth in this, but while a good crash-free record will help your premium, as you age and as your car ages they can push the premium up more than your good driving pushes it down. Because there are a number of factors which are used in determining the cost of premiums, it’s not all about your driving record.

New cars are always more expensive to insure than older cars

Not always the case! This really comes down to make and model, so you will need to pull a number of quotes to get the truth here.

Smaller cars are cheaper to insure

This is not always the case. The reason why is that smaller cars tend to take more damage when involved in a crash. A small car is often easier to write off when it is involved in even a small crash. Again you will need to compare policies on various models to see if there is a saving available.

Buying Insurance online is always the cheapest

While the Internet is a fantastic tool for buying insurance it doesn’t always guarantee the best price. This is especially true if you don’t have a firm grasp on the finer points of the policy. Depending on your exact situation, an insurance broken might be able to obtain a better deal for you.

A car is only considered a “write-off” if it can’t be driven after the accident

Often a car is still drivable but the costs to make it entirely road worthy and restore it to it’s previous appearance are extremely high. So even if it appears to be capable of driving from the accident scene, that doesn’t mean it is not a write off.

If I write off my car, the Insurance will cover the loan on the car

This is incorrect! The standard insurance policy will only cover the value of the car at the time of the accident minus the deductible. If the value of the car is now less than the remaining debt on the car loan, you will will still owe money after the insurance has been paid.

Insurance policies always cover car theft

They do not. You will need a “comprehensive” insurance policy to cover the theft of your vehicle.

A new car is more likely to get stolen because it’s worth more

This seems to make sense right? Well no. Car thieves usually prefer older cars because they are easier to break into and they have a larger second hand parts market. So they can sell the car to a third party and they will scrap it for parts. So if you have a slightly older car, comprehensive insurance is more valuable than you think.

Everything inside my car is also covered by comprehensive insurance

Most car insurance policies only cover the car itself, but the good news is that a good home insurance contents policy may include valuables that are inside your locked vehicle.

Expensive sports cars always cost the most to insure

This is not always the case. A 40 year old Porsche driver with no accidents may have a cheaper insurance policy than a 24 year old Subaru WRX driver with a bad driving record. Once again, many variables are at play and it is worth talking to an insurance broken and/or shopping around for the best deal.

Insurance will also cover the cost of car modifications

This is not true, so if you have one of those high performance car to which you have added various modifications, they will not be covered by most insurance policies. You will have to pay extra to have those modifications covered, and you should keep receipts and photographs of the modifications. Even then, only the modifications that you included when you purchased the insurance policy will be covered.

If your car breaks down your car insurance policy will provide a rental car

No it won’t! If it is a mechanical issue, the onus is upon you to repair it and pay for your own rental car.