What is a common factor that can lead to a higher insurance premium?

A high-performance vehicle or poor driving history significantly contributes to higher insurance premiums due to the increased risk associated with these factors. Insurance companies assess the likelihood of a claim being made based on various criteria, and a poor driving history—marked by accidents or traffic violations—indicates a higher risk of future claims. Additionally, high-performance vehicles often come with higher repair costs, greater potential for accidents due to their speed, and higher theft rates, all of which can lead to more expensive insurance policies.

In contrast, safe driving histories and vehicles with high safety ratings typically suggest lower risk, while living in rural areas is associated with lower accident rates and, consequently, often results in lower premiums. Therefore, the combination of a poor driving record and owning a high-performance vehicle presents a significant risk factor that justifies the increase in insurance costs.