Luxury car insurance typically costs more than coverage for a standard vehicle, partly because drivers of expensive vehicles tend to want full coverage insurance to protect the investment. Additionally, the bells and whistles that make a car luxurious are pretty expensive to replace and repair after a crash — all leading to higher premiums.
How much does luxury car insurance cost?
On average, Jerry customers with fancier cars can expect to pay $186 per month for minimum liability coverage and $398 per month for full coverage. Pricing varies based on car specifics, location and driver profile.
If that number seems high, that’s because it is. The average cost of car insurance in the U.S. is $183 per month for state minimum coverage and $245 per month for full coverage according to Jerry data. This is because repair and replacement costs for luxury cars tend to be higher, which tends to lead to higher collision and comprehensive insurance costs.
Below are average rates that Jerry customers have been quoted for some higher end car brands for full coverage insurance:
|
Car Make
|
Avg Monthly Quote
|
|---|---|
| Lincoln | $342 |
| Cadillac | $350 |
| Acura | $364 |
| Lexus | $364 |
| Audi | $437 |
| Porsche | $442 |
| Infiniti | $448 |
| Mercedes-Benz | $483 |
Finding the best insurance rates for luxury cars
Unfortunately, no single car insurance company will provide the cheapest luxury car insurance rates for everyone. Car insurance rates are highly individualized, so you’ll need to shop around for insurance quotes for luxury cars to get a full picture of your expected costs.
With that being said, here are the average rates from the top luxury car insurance providers in the industry right now based on quotes Jerry customers have received:
|
Insurance Company
|
Avg Monthly Quote
|
|---|---|
| Safeco | $256 |
| Aspire Advantage | $259 |
| Mercury | $263 |
| Bluefire | $269 |
| Progressive | $276 |
| Trexis | $325 |
| AAA | $345 |
| First Acceptance | $347 |
| National General | $367 |
| Mendota | $371 |
Why is car insurance so expensive for luxury cars?
In addition to your driving history and demographics, auto insurers take many vehicle factors into consideration when setting prices. There are several reasons that luxury auto insurance is so expensive:
- They’re higher-risk for theft. New luxury cars are prime targets for thieves due to their desirability and resale value. Even if recovered, stolen vehicles often suffer damage or have missing parts, leading to increased insurance costs.
- Complex parts and manufacturing: Many luxury car parts are manufactured overseas, making shipping and replacement more expensive. Additionally, these vehicles often have pricey features like heated and cooled seats, advanced entertainment systems and advanced suspension systems, which cost more to repair.
- Specialized parts: Luxury cars are often engineered with tighter tolerances, meaning parts must be precisely manufactured to fit and function correctly. This makes them more expensive to produce and replace.
- Lower production volume: Luxury car manufacturers produce fewer vehicles than mass-market brands, so parts are harder to get ahold of when you need them, leading to higher costs for parts and labor.
- Fewer mechanics available: Repairing a luxury car often requires specialized knowledge and tools, which can increase labor costs.
These higher car insurance rates typically apply to your comprehensive and collision portions of your insurance rate, which pay out to repair your own car after an accident, regardless of fault.
However, you might also see higher liability insurance rates for your luxury vehicle if you choose higher limits to protect your assets in case you cause a bad wreck. When choosing liability limits, you should get enough to protect your net worth, which is likely to be higher for a luxury car owner.
Beyond the value of your car itself, your car insurance company might also consider things like the vehicle’s safety ratings — the safer your vehicle, the less likely you are to be seriously injured and require an expensive insurance claim. If your luxury car of choice has good safety ratings from the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS), you may be more likely to get a low rate.
Finally, auto insurance companies will consider your personal characteristics when determining your rates. Things like your driving record, your monthly mileage and your credit health can have a significant impact on your insurance premiums.
How much car insurance to get for expensive vehicles
While you’re only legally required to purchase minimal liability coverage, if you own a home and have a lot of assets you will want enough liability to cover them in case you cause a bad wreck and are sued. And liability insurance alone won’t cover the costly repairs to your vehicle in the event of a car accident, leaving you with very, very high out-of-pocket repair expenses to cover on your own.
Expensive vehicles warrant purchasing a full coverage policy to protect your investment in luxury, which will include liability coverage plus:
- Comprehensive coverage pays for repairs up to the actual cash value (ACV) of your vehicle after it sustains damages from something other than a collision, such as vandalism, theft or a natural disaster.
- Collision coverage pays for damages to your vehicle after a collision with another vehicle or a stationary object.
These insurance coverage options will be more expensive for a luxury car, but it’s well worth it in the event of an accident.
It’s also a good idea to carry gap insurance or new car replacement insurance for leased or financed luxury vehicles. Carrying these types of coverage will ensure that you’re not stuck with a car payment after totaling your vehicle.
More luxury car insurance tips
When you also need peace of mind for your high-value vehicle, it’s not going to be easy to find cheap car insurance. Still, there are a few things you can do to lower your insurance rates for your vehicle:
- Compare rates and shop around: Each carrier will value your personal characteristics differently, the best place to start is by comparing rates from multiple insurance carriers.
- Look for discounts: Most insurance companies offer car insurance discounts for things like bundling and being a safe driver. To learn more about discounts available to you, contact your car insurance provider and ask.
- Keep your driving record clean: Drivers with a clean driving record will see lower car insurance rates — so make an effort to avoid speeding tickets and other traffic violations.
- Improve your credit score: A strong credit history can lead to lower auto insurance premiums. By paying bills on time, limiting credit usage and regularly checking your credit report, you can improve your score and potentially save money.
- Forego the most expensive trims: Luxury vehicles often offer expensive trim options that can increase your car insurance rates. By choosing the most basic trim option, you may be choosing a lower monthly premium, too.
- Invest in safety features and vehicle protection: Things that protect your vehicle, like anti-theft devices and safety features to help you avoid an accident, can lower your auto insurance rates.
- Raise your deductible: A higher deductible corresponds to lower insurance rates. Just remember that you’ll be responsible for paying your deductible out-of-pocket in the event of an accident, so don’t raise it higher than you can afford.
Megan Lee is an editor, writer, and SEO expert who specializes in insurance, personal finance, travel, and healthcare. She has been published in U.S. News & World Report, USA Today and elsewhere, and has spoken at conferences like that of NAFSA: Association of International Educators. Megan has built and directed remote content teams and editorial strategies for several websites, including NerdWallet. When she`s not crafting her next piece of content, Megan adventures around her Midwest home base where she likes to drink cortados, attend theme parties, ride her bike and cook Asian food.
Liz Jenson is an insurance writer who specializes in general automotive and insurance topics. Liz’s mission is to produce informative and useful content to help car owners make smart choices when buying cars and car insurance. Since joining Jerry in 2021, Liz has written nearly 4,000 long- and short-form articles on topics including state-specific insurance recommendations, common car insurance questions, and deep dives into vehicle model details. Before they came to Jerry, Liz was a full-time student at Indiana University, Bloomington working on a double major in English and French.
Lacie Glover is a Lead Writer and Editor with sixteen years’ experience in the insurance category. Prior to Jerry, she spent more than a decade on NerdWallet’s content team writing, editing and then overseeing the auto insurance category, as well as dabbling in other insurance and automotive topics. Prior to her career in the online personal finance content space, Lacie spent time in the hard sciences, in clinical research and chemistry labs. She has a bachelor’s degree from Colorado State University.
