Luxury car insurance typically costs more than coverage for a standard vehicle, mainly due to high replacement and repair costs. But you may be able to find affordable luxury car insurance by shopping with companies like Clearcover, State Farm, and Nationwide.
How much does luxury car insurance cost?
On average, luxury car drivers can expect to pay an average of $109 per month for minimum liability coverage and $282 per month for full coverage.
If that number seems high, that’s because it is. The average US driver pays about $77 a month for minimum liability coverage and around $165 for full coverage—about 61% less than luxury car drivers. This is mainly due to increased repair and replacement costs for luxury cars.
To find out more about the cost of luxury car insurance, our experts analyzed thousands of policies purchased by real Jerry users. After examining the average monthly cost of minimum liability and full coverage for several popular luxury car brands, here’s what they found:
| Luxury car brand | Minimum liability | Full coverage |
|---|---|---|
| Acura | $107 | $240 |
| Audi | $98 | $268 |
| BMW | $104 | $293 |
| Infiniti | $117 | $286 |
| Lexus | $105 | $265 |
| Lincoln | $105 | $232 |
| Mercedes-Benz | $108 | $294 |
| Porsche | $118 | $331 |
The best (and cheapest) insurance companies for luxury cars
Unfortunately, no single car insurance company will provide the cheapest luxury car insurance rates every time. Car insurance rates are highly individualized, so you’ll need to shop around for insurance quotes for your luxury car to get a full picture of your expected rates.
With that being said, here are the average rates from the top luxury car insurance providers in the industry right now.
To find detailed information about luxury car insurance, the experts at Jerry performed one of the largest insurance surveys in the nation. They examined the average minimum liability and full coverage luxury car insurance rates offered by several insurance providers. Here’s what they found:
| Insurance company | State minimum | Full coverage |
|---|---|---|
| AAA | $120 | $234 |
| Bristol West | $175 | $452 |
| Founders | $50 | $175 |
| MAPFRE | $68 | $188 |
| National General | $91 | $244 |
| Nationwide | $75 | $180 |
| Progressive | $78 | $194 |
| Safe Auto | $119 | $245 |
| State Auto | $76 | $170 |
| Travelers | $87 | $160 |
Why is car insurance so expensive for luxury cars?
There are two primary reasons that luxury car insurance is so expensive:
- They’re more expensive: Luxury vehicles are expensive to purchase and replace but also very expensive to repair.1 This increased financial risk for insurance companies results in higher average rates.
- They’re high-performance: Most luxury vehicles are high-performance vehicles with powerful engines, which increases the risk of a crash.2 To offset this risk, insurance companies increase your premiums.
These higher car insurance rates typically apply to your comprehensive insurance and collision insurance, but you might also see higher liability insurance rates for your luxury vehicle because of the increased chance of causing an accident.
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 to make 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 driver profile when determining your rates. Things like your driving record, your monthly mileage, and your age can have a significant impact on your insurance rates.
What about car insurance for exotic cars?
Exotic cars from brands like Alfa Romeo, Maserati, Ferrari, and Lamborghini see more expensive average insurance rates of $128 per month for minimum liability coverage and $364 a month for full coverage. That’s because exotic cars often have unique parts that require specific tools, making repair and replacement costs very high.
Usually, exotic cars are insured via classic and collector car insurance policies, as these vehicles are considered collector’s items.3 Classic and collector insurance policies offer specialized protection so that rare and valuable vehicles (like exotic cars) are insured for their actual appraised value rather than their current market value.
Average auto insurance rates for luxury vehicles
One of the biggest factors in determining luxury car insurance rates is vehicle cost. More expensive cars cost more to insure, and luxury cars are often very expensive.
Below, you’ll find the average monthly minimum liability and full coverage rates for some of the most popular luxury vehicles of 2024 so you can compare MSRP with insurance cost.
| Model | MSRP (2024) | Minimum liability | Full coverage |
|---|---|---|---|
| Acura MDX | $50,745 | $107 | $238 |
| Audi A4 | $41,395 | $95 | $239 |
| BMW 230i | $38,395 | $103 | $303 |
| Infiniti Q50 | $43,800 | $116 | $343 |
| Lexus ES | $43,090 | $102 | $264 |
| Mercedes-Benz GLA-250 | $38,650 | $104 | $278 |
How much insurance do you need for a luxury car?
While you’re only legally required to purchase liability coverage insurance for your new car, expensive vehicles like luxury cars warrant purchasing at least a full coverage policy to your auto insurance policy. Liability insurance 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.
A full coverage insurance policy will include liability coverage plus:
- Comprehensive coverage: Comprehensive coverage insurance 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: Collision coverage insurance 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 due to high repair and replacement costs, but it’s well worth it in the event of an accident. Jerry can help you find affordable rates on full coverage insurance for your luxury vehicle by generating quotes from top providers in a matter of minutes.
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.
How to find affordable luxury car insurance
It’s not easy to find cheap car insurance for a high-value vehicle, but there are a few things you can do to lower your insurance rates for your vehicle:
- Compare rates and shop around: When finding affordable car insurance, the best place to start is by comparing rates from multiple insurance carriers. Jerry can compare personalized insurance quotes from a pool of 55 top insurance providers in a matter of minutes, making this process quick and easy.
- Look for discounts: Most insurance companies offer car insurance discounts for things like bundling, being a safe driver, and even being a good student. 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 while it might be tempting to speed down the highway in your high-performance luxury vehicle, make an effort to avoid speeding tickets and other traffic violations.
- Improve your credit score: Drivers with poor credit scores (524-577) pay an average of 44% more for car insurance than drivers with fair credit (710-740) and 115% more than drivers with excellent credit (823+).
- Forego 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 inadvertently 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 because they lower risk factors for car insurance companies.
- 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.
FAQ
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Do luxury vehicles need special insurance?
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What is the best car insurance company for luxury cars?
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Are car insurance rates higher for luxury cars?
Sources
- https://www.jaguarakron.com/finance/car-buying-tips/are-luxury-cars-more-expensive-to-insure/ ↩︎
- https://www.ridewithloop.com/blog/why-sports-cars-get-charged-more-by-car-insurance-companies ↩︎
- https://www.classicins.com/what-we-insure/exotic-car-insurance ↩︎
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.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars. Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
