Whether you own a 1999 Honda Accord whose 140 horsepower 1.5 liter D15 engine you have just replaced with a 280 horsepower 2.3 liter turbocharged K Series engine, or you are the owner of a new 1018 horsepower Koenigsegg CCXR, you will want to do business with an auto insurance company which has the inside track on insuring performance vehicles.
Insurance companies, when determining the premium for a particular vehicle, consult actuarial companies to evaluate that year, make and model’s loss history, how often this type of vehicle is stolen and how expensive it is to repair or replace. This is how your insurer prices the comprehensive and collision coverage on your vehicle.

Differences in Performance Vehicles

It is for this reason that sports performance cars, such as the Porsche or Mercedes AMG may be less expensive to insure than a performance-enhanced vehicle in which a smaller engine has been replaced by a larger, more powerful one, and whose suspension and other driving characteristics may have been altered. Insurers may assume that such modifications alter the handling of the vehicle and make it less safe on the road. “Garden variety” insurers believe that drivers of “tricked out” vehicles are also more likely to drive with less caution.

Use an Agent Who Knows Performance Vehicles

Consider obtaining performance auto insurance from a specialty insurer who may be more familiar with your type of vehicle and more experienced handling performance vehicle claims. In many situations, a specialty insurer recognizes that the hours of labor and expense devoted to a vehicle may reveal a driver who is more responsible than most. In some instances, the cost of the modifications to a vehicle may be worth more than that of the vehicle itself. In those situations, a specialty insurer will prepare an agreed-value policy based on the value of the car and its modifications. Regardless, you will want to know how to keep your performance auto insurance premiums as low as possible while keeping your lightning bolt on wheels adequately protected.

Discounts for Security Devices

Compare auto insurance rates online and talk directly with insurance companies and brokers to see if they can beat the best price you found. In some cases, your insurer will make a coverage stipulation, requiring that you limit your miles driven in order to keep your premium at a given rate. To qualify for other discounts, consider installing a tracking device or vehicle immobilizer. Take an advanced driving course for which some insurers will offer a discount.

Delay Gratification

Young people are considered a higher risk and are charged a higher rate. If you are between 21 and 25 years old, find out which insurers use the age 21 as the cutoff for the higher young driver rates. Other insurers use 25 years as the point at which they drop the “young driver” penalty. If you can just wait until after your thirtieth birthday to order your own CCXR, your performance auto insurance premium will be even less.

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