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Introduction

Luxury is an experience, and so is driving. Luxury car companies combine these two to provide an ultimate experience.  Considering it a high-end investment, it is important to maintain your luxury car on and off the road. This includes staying prompt with luxury car insurance which is higher than the traditional vehicles. The obvious reason behind this is the higher repair and replacement cost that the insurance company has to pay in case of any damage.

You can still insure your car at the cheapest rates with the best insurance companies exclusively for your luxury car.

What's the Best Luxury Vehicle Car Insurance?

Experiencing a luxury car is more than an A to B means of transportation. There occurs a fine-tuning that allows you to enjoy the trip. It is worth protecting. For a high-performance car, additional insurance options need to be considered. Let's explore the best car insurance for luxury vehicles.

Cheapest Luxury Car Insurance by Make and Model

For a standard vehicle, luxury car insurance is often more costly than insurance. The high price of a luxury car inevitably leads to higher insurance costs, as car insurance is designed to protect your vehicle. The average annual insurance premium for a luxury car was about 18 percent higher than the cost of insuring a moderately priced sedan for the models included in our survey. We broke down average insurance costs for popular luxury car models, using a driver profile outlined here, generating average quotes from individual businesses.

 

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Audi Q5

Among the vehicles we surveyed, the Audi Q5 is slightly more expensive at a list price of $43,330. Its average insurance premium is around $1,749. Though USAA is the cheapest option, not everyone can qualify for their insurance which is open for military members. The next best option would be State Farm offering $1720.

Audi Q5's Annual Insurance Rates

Company Insurance Premium
USAA $1341
State Farm $1720
Progressive $1373
Nationwide $1458
Liberty Mutual $1883
Farmers $2161
Allstate $2378

BMW Series 3

BMW is yet another luxury brand and their 3 series is a classic. This luxury small class car is priced at $41,450. Apart from USAA, Nationwide provides the cheapest insurance rate, beginning at $1680 per month. 

Annual Insurance Rates For The BMW 3 Series

Company Insurance Premium
USAA $1506
Nationwide $1680
State Farm $1769
Progressive $1926
Farmers $2043
Liberty Mutual $2103
All State $2577

BMW X3

This crossover SUV is priced at $43,700. The insurance for this model from BMW is cheaper when compared to its counterparts.

Average Cost Of Annual BMW X3 Insurance

Company Insurance Premium
USAA $1221
Nationwide $1439
Progressive $1442
State Farm $1627
Farmers $1722
All State $2169

Q50 Infiniti

Q50 Infinity is a luxury sedan that is slightly on the cheaper side of the luxury spectrum in our survey. It starts at $42,100. The average annual insurance for Infiniti Q50 is $1910, which is around $163 per month. USAA provides the cheapest insurance once again, followed by Nationwide or State Farm offering affordable rates.

Average Cost Of Annual Infiniti Q50 Insurance

Company Insurance Premium
USAA $1372
Nationwide $1507
State Farm $1765
Liberty Mutual  $1949
Progressive $2001
Farmers $2125
Allstate $2474

BMW X5

The price of the BMW X5 is between $59,600 and $65,400 for its plug-in hybrid variant. You can reduce your annual insurance premium to $1620 by signing up with Nationwide, if not with USAA.

Average Cost Of Annual BMW X5 Insurance

Company Insurance Premium
USAA $1490
Nationwide $1626
Progressive $1787
State Farm $1908
Liberty Mutual $2027
Allstate $2759

Lexus ES

Lexus ES is one of the lower-priced mid-sized cars belonging to this clan. Priced at $40,800 for the base models, and $49,980 for its ultra-lux trims. Based on the price of the car, the insurance premiums range between $1299 and $2375, with USAA and Nationwide being the cheapest and Allstate being the highest.

Average Cost Of Annual Lexus ES Insurance

Company Insurance Premium
USAA $1299
Nationwide $1412
State Farm $1707
Liberty Mutual $1917
Progressive $2056
Farmers $2105
Allstate $2375

Lexus RX 350

Lexus RX comes in two and three-row variants priced at $45,320 and $48,150 respectively. It also features a sports trim which tops the price chart at $48,800. The insurance premiums offered stand at an affordable range.

Average Cost Of Annual Lexus RX Insurance

Company Insurance Premium
USAA $1228
Nationwide $1361
Progressive $1623
State Farm $1695
Liberty Mutual $1810
Farmers $1958
Allstate $2245

Mercedes-Benz C-Class

Coming in premium, exclusive and pinnacle trim levels, insuring a Mercedes-Benz C-Class is a pricy affair. The average cost to insure it is $1639 per year which is costlier than the average insurance rate of the other models.

Average Cost of Annual Mercedes-Benz C Class Insurance

Company Insurance Premium
USAA $1480
Nationwide $1738
State Farm $1776
Progressive $1831
Farmers $2140
Liberty Mutual $2172
Allstate $2677

Small Luxury Car Insurance Rates

Compact luxury cars are always in demand for the features and the affordability it offers. The average car insurance rate for small luxury cars is $1723 per year. The cheapest model under this category would be Mercedes-Benz A220, costing $1,492 per year.

Other cars under this category include BMW330i, Acura TLX, and Audi A4, the monthly rates which range between $139 and $172.

Midsize Luxury Car Insurance Rates

Acura ILX, Lexus RC 300, and BMW i4 are a few luxury models falling under the mid-size category. The cheapest sedan to insure would be Acura ILX costing around $1398 per year. The average cost for this category of luxury cars is around $2009 per year.

Large Luxury Car Insurance Rates

The average monthly rate of insurance for large luxury cars is $205. Audi A5 costs around $1783 per year while BMW 760i, one among the costliest to insure costs around $2984 annually on an average.

Additional Options for Luxury Car Insurance

Insuring a luxury car might be a costly affair but it is important to go through the coverage options and choose wisely as the risk associated with the car is higher. So, even when your state requires only liability coverage, it is smart to insure it with other optional coverage options available.

Liability Insurance

This is a mandatory coverage option that covers the expenses of the repair and medical treatment of the other driver in an at-fault accident. The general rule for liability insurance is to buy enough to cover your assets at risk, meaning that if you are held liable for damages, you should cover the value of anything you stand to lose. In the event of a car accident, this insurance covers medical expenses and property damage to other parties if you are proven to be at fault.

Sometimes, insurers in a specific state have the maximum amount of liability insurance. For example, in New York, Allstate's maximum liability limits are $250,000 per person and $500,000 per liability for bodily injury (BI) accident, and $100,000 per liability for property damage (PD) accident. Try having an umbrella policy that is available in installment of $1,000,000 and comes in after the BI and PD caps are met for extra exposure coverage.

Collision and Comprehensive Coverage

It provides full coverage of the damage that occurs in an accident or other non-collision-related incidents. Full collision and comprehensive insurance, both covering damage to your own vehicle, are an essential and costly part of luxury vehicle insurance. In an accident that involves your car hitting another vehicle or structure, collision insurance covers damage to your vehicle. Comprehensive insurance covers damage caused by accidents outside of your vehicle. To name a few examples, this includes damage caused by natural disasters, falling objects, and stealing.  Getting crash and extended coverage means that you are protected, regardless of liability, for the entire cost of the damages to your car. Premiums are based on the value of your car and its repair expenses for this type of coverage. The high value of expensive cars and costly maintenance costs allow for high premiums. Choose an insurer, such as Nationwide, with an OEM part requirement option for their complete and collision coverage, if you prefer to have your vehicle repaired with original equipment manufacturer (OEM) parts. With this option, the insurer will, wherever possible, pay for OEM parts, even though less costly aftermarket parts are available. This raises your premium but saves you from paying for pricey parts out of pocket.

Gap Insurance

Though it is an optional insurance, it is good to opt for gap insurance if it is a brand-new car and if you are financing it for 60 months or longer. It covers the difference between the car’s current value and how much you owe for it.   You should purchase gap insurance which covers you if you owe more to the vehicle than your insurance would pay to replace it in the event of an accident if you are leasing or financing a luxury vehicle. Since your insurer would only pay the actual cash value of the car, if your vehicle quickly depreciates in value, you could be on the hook for thousands of dollars, which happens to many luxury vehicles once purchased and driven, if you don't have a gap insurance.

Personal Injury Protection

Also known as medical payments insurance, it covers the cost of medical bills incurring due to the accident regardless of whose fault. Depending on the state it can be mandatory or optional.

Personal Injury Protection (PIP) is a significant coverage for luxury car owners, which covers you and your passengers' medical bills in the event of an accident, given the increased risk of injury from a car crash that comes with high-powered vehicles. Your insurer will pay with PIP regardless of who is at fault, meaning claims are usually processed faster and with less conflict. If your insurer does not offer PIP, or it is not available in your state, then consider covering medical payments. Medical payment coverage functions like PIP, but for lost wages or similar losses, it does not payout.

New Car Replacement Coverage

If you have full coverage, then you can opt for the new car replacement coverage. If your car gets destroyed, then this will step in to reimburse for the new model of the same car. Consider new car replacement coverage if you are purchasing a new luxury vehicle outright.

Custom Parts and Facilities Coverage

It is better to consider this policy if you have custom add-ons on your vehicle like stereo, wi-fi access, navigation system, and television.

Uninsured Motorist Property Damage Coverage

In the case of an accident, if the at-fault driver doesn’t have insurance or if his insurance isn’t enough to cover the cost of damages, then, this coverage helps you navigate through the expenses.

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How much does insurance for luxury vehicles cost?

Insuring a luxury vehicle costs much more than a non-luxury car. Yet insurance premiums don't usually go up immediately in line with the price of the vehicle, based on our analysis. On average, about $1,800 more a year to insure than comparable non-luxury models, the luxury sedans that we received quotes for pricing. However, although the premium models proposed selling price (MSRP) from the manufacturer was 400 percent higher than the simpler models, the insurance prices were just 63 percent higher. This may be due to safety equipment or that a substantial portion of the insurance premiums are focused on compensation of exposure that is not impacted by the price of the car.

Hacks to Save on Luxury Car Insurance

The high cost, increased risk of theft, and expensive repairs associated with luxury vehicles mean that insurance can be very costly. In the case of exotic vehicles, it could also be difficult to find an insurer that offers coverage.

   ●   Be clever with your assertions

While using your insurance to safeguard your high-end investment may be your instinct, consider the long-term financial implications of filing a claim. Most car insurance companies will charge you for any accident at fault for three years, i.e., rate. Consider these steps when you decide between filing a claim or paying out-of-pocket.

   ●   Research and shop around

It is important to research and get quotes from different insurance providers. This will help you compare better and choose the best according to your needs. This makes sure you don't overpay for coverage.

For common luxury cars, it is reasonably straightforward to procure online quotes from top insurers. For the same amount of coverage, businesses may charge different rates, so matching quotes is important. As they are likely to have coverage in your market, we recommend beginning with major national auto insurers, although these insurers do not provide coverage for certain high-cost exotic vehicles.

   ●   Bundle your policies

Known as multi-line discounts, several insurance providers give incentives on the bundling of different insurance lines. It is wise to couple your insurance as most of the providers offer a good percentage of deductions if you purchase your home, car, life, or pet insurance from the same carrier. Avoid adding high-risk drivers to the package, such as young drivers, because they will cause your premiums to escalate significantly.

   ●   Know the discounts

A major share of insurance providers offers discounts based on your clean driving record, driving history, credit scores, good student record, and so on. Enquiring about the availability of these discounts can result in a reduced rate.

   ●   Raise your deductibles

Opting for a higher deductible will automatically reduce your premium rates.

   ●   Off-season vehicle storage

If you drive your car occasionally, then you can opt for storage of your vehicle. If you don't intend to drive a car for an extended period of time then drop all but extensive coverage. Maintain comprehensive coverage in the event of any injury to your car that is not relevant to driving. Certain companies will allow maintaining just the comprehensive coverage if you have opted for driving seasonal coverage.   For example, if you have a vehicle, you drive only in the summer, a convertible, check if your insurance will allow you to minimize your coverage while your car is in storage. When you intend to store your car in an unsecure area with limited coverage so you won't be covered for hit-and-run collisions, don't cancel the collision insurance.

   ●   Security and anti-theft luxury car discounts

For safety equipment such as anti-lock braking, daytime running lights, airbags, and traction control systems, car insurers typically offer discounts. Many of these items are common for luxury cars, so make sure the insurance provides you with any possible discounts. Insurers offer discounts on goods that minimize burglary risks, such as car alarms, safe parking, electronic monitoring equipment, and window etching for vehicle identification numbers (VIN). VIN glass etching entails engraving the VIN on the vehicle's hood and windows and can be done anywhere for about $100 to $200 at a garage or car body store. It makes it possible for law enforcement officials to reclaim your car and lowers the appeal for criminals who try to take your vehicle apart when they have to remove traceable bits.

Insurance for Exotic Cars

Exotic vehicles are known to be a subsection of extremely rare and luxurious luxury cars. Ferraris, Lamborghinis, and McLarens are examples. Due to their immense expense, pricey maintenance, and the elevated chance of accident that comes with extremely high horsepower, these cars pose a huge risk for insurers. A special feature of such cars is that they can rise in value over time, unlike other vehicles. Consider a collector's vehicle or specialty auto insurance package if you drive an expensive car. These plans also work with a negotiated valuation for your car, ensuring that to repair your vehicle, you and your insurance negotiate a net payout price. If the insurance has a lower estimate of the real cash worth of the exotic car than you can anticipate, this negotiated value is the overall cost you are insured for which removes conflicts.

Grundy Insurance, Hagerty, and PURE Insurance are the top firms selling niche auto coverage for exotic vehicles. You would need to meet the following conditions to apply for these policies:

  • Your car must be of a certain size or age (for example, over $100,000 or 25 years old)
  • Your car must be in excellent shape.
  • Your car should not be a car for everyday use.
  • When not in operation, you must place your car in a locked garage.
  • You have to be over 25 and have a clear driving record.
  • When reviewing the driving record, these insurers are also more concerned with serious driving offences like DUIs, reckless driving, and excessive speeding. If you only have a handful of minor penalties on your record, you can still be eligible for these policies.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

FAQ

How much does luxury car insurance cost?

Luxury cars generally cost more due to their sophisticated make. The insurance rates vary according to the size of the car. While insurance for small size luxury cars costs around $1,723 per year, it is around $2009 and $2398 for mid-size and large luxury cars respectively. 

Are there any restrictions in place for luxury and sports car insurance?

While most insurers cover luxury vehicles, not all companies insure high-end sports cars. You might need to consider a specialty insurer for the same.

Which is the best insurance company for luxury cars?

There is no one-size-fits-all when it comes to insurance. One must be specific about the coverage, compare quotes, and consider discounts, to find the best that suits them.

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