Most Expensive Cars to Drive: Jaguar XJ

The Highway Loss Data Institute keeps track of the reported collision losses for the different makes and models of cars out on the road. From this data, they compile a list of the ten most expensive cars to insure. The cars that make the top ten list have higher collision losses than any other type of vehicle. For the period from 2002-2004, the Jaguar XJ checked in at number ten on the list. Given the XJ’s hefty price tag, it shouldn’t come as too much of surprise that the car costs a mint to insure. However, insurers look at several factors when determining your premiums, and we’ll discuss those in order to explain more fully why the XJ is so costly to insure.

Factors Influencing Premiums

You might look at the Jaguar XJ and see an elegant, powerful, and luxurious machine. An insurer looks at the car and sees an expensive, imported car with too much engine power to overlook. You have to remember that the things that appeal to you in a car don’t really matter to an insurer, unless of course those features have any impact on statistical risk. If a particular feature of a car makes it less likely to get into an accident, the insurer will reduce your premiums accordingly. If, on the other hand, your vehicle possesses one or more features that make it more collision prone, then you can expect to pay for this added risk in your premiums. Here are the main features of the Jaguar XJ that make it one of the most expensive vehicles to insure:

• Price tag. The 2009 Jaguar XJ starts at $94,075. Obviously, this is not a cheap car, which also means it will not be cheap to fix. This is what insurers see when they are issuing policies for luxury cars. The more expensive your car is, the more the parts will cost when it has to be repaired after a covered loss. In other words, more expensive cars mean high-dollar claims, and insurers like to avoid those at all costs.
• Domestic or foreign. Imported vehicles usually cost more to repair than domestic vehicles. Thus, if you drive a foreign automobile, you will more than likely pay higher premiums. Though Jaguar was owned and made by Ford for a brief period of time, Jaguar is still usually regarded as a British car manufacturer.
• High-powered engines. The Jaguar has a supercharged 4.2 L V8 engine with a whopping 400 horsepower (for model year 2009). The base model XJ can do 0-60 mph in about 6.5 seconds. Without question, this is a high-performance vehicle. Needless to say, insurers cringe when they have to write a policy for a car that’s considered high performance. This is because, statistically, these cars are driven at higher speeds and get into more collisions than do other vehicles. More frequent collisions mean more frequent claims for insurers, and they mitigate this risk by charging you higher rates.

Additional Resources

• About the Jaguar XJ
• 10 Most and Least Expensive Cars to Insure