As one of the most storied muscle cars ever produced, the Ford Mustang GT is a coveted vehicle. Although it's produced in fairly large numbers, the demand for these cars is typically red-hot. Aside from a forgettable run during the 1980s and 1990s, the Mustang is believed to offer excellent value. The car often wins time trials and other evaluations against high-performance vehicles that retail for as much as three times the cost of a base-model GT. If you're in the market for an affordable, fun-to-drive American muscle car, you could do worse than a 2005 Mustang GT.
Unfortunately, these vehicles cost a fair amount to insure. Despite their relatively modest retail value, there are several insurance-related factors that work against the Mustang GT. If you're dead-set on buying one of these cars, be prepared to budget several hundred dollars a month for your loan payments and insurance premiums.
First, most Mustang trims come with a standard rear-wheel drivetrain. While this increases their power and responsiveness on dry pavement, it makes them susceptible to inclement weather conditions. When the roads are wet or icy, Mustangs tend to perform poorly and may become involved in preventable accidents. In fact, many serious winter-driving accidents are caused by such improperly-equipped vehicles.
Secondly, Mustangs are popular targets for vandals and car thieves. While newer Mustang models come with robust safety features that deter all but the most experienced criminals, the versions that Ford produced for the 2005 model-year don't have many of these safeguards. As such, Mustangs are stolen at higher rates than "normal" Ford vehicles like Explorers, Expeditions and Escapes.
There are plenty of other factors that work to increase the insurance costs of the typical Mustang. Although it may seem unfair, insurance companies generally flag drivers who purchase high-performance vehicles as potentially unsafe. Even if you have a solid driving record, the fact that you own a Mustang may increase your perceived risk as a driver. Despite evidence to the contrary, some insurance companies argue that drivers take more risks with muscle cars than with ordinary vehicles.
Of course, your demographic profile and driving history will also affect the cost of insuring your 2005 Mustang GT. If you're young or inexperienced, chances are good that you'll be forced to pay more for your policy. Likewise, a driving history that's filled with speeding tickets and fender-benders may cost you as well. In general, your choice to purchase a Mustang could cost you an extra $1,000 per year in insurance premiums.