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Car Insurance for Luxury Vehicles

Written by Elizabeth Rivelli

Reviewed by Alyssa DiCrasto

Last updated: January 25th, 2024

The make and model of your vehicle will impact your car insurance premium. Because luxury cars have a high value and are often expensive to repair, the cost of car insurance for luxury vehicles can be pretty high. So if you’re thinking about purchasing a luxury vehicle, you should be prepared to pay a higher premium for your car insurance coverage.  

What does it cost to insure my luxury vehicle?

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How much is luxury car insurance?

Before you purchase luxury car insurance, it’s a good idea to get several rate quotes to see how much you’ll pay for coverage. In this guide, we’ll provide average car insurance rates for several popular luxury vehicles, and highlight which models are the cheapest and most expensive to insure. We’ll also share some tips for reducing your insurance premium.  

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How much luxury car insurance costs

The make and model of your vehicle will impact your car insurance premium. Because luxury cars have a high value and are often expensive to repair, the cost of car insurance for luxury vehicles can be pretty high. So if you’re thinking about purchasing a luxury vehicle, you should be prepared to pay a higher premium for your car insurance coverage.  

Before you purchase luxury car insurance, it’s a good idea to get several rate quotes to see how much you’ll pay for coverage. In this guide, we’ll provide average car insurance rates for several popular luxury vehicles, and highlight which models are the cheapest and most expensive to insure. We’ll also share some tips for reducing your insurance premium.  

Make Model Premium
Mercedes GLC 300 1,867
Mercedes GLE 350 1,869
Acura MDX 1,903
Volvo XC60 B5 Inscription 2,083
Lexus NX 250 2,116
Lexus RX 350 2,155
Lincoln Aviator 2,358
Lexus ES 250 2,439
Audi Q5 Quattro Premium S-Line 2,443
Cadillac Escalade Luxury 2,492
Porsche Cayenne 2,649
BMW X3 M 2,700
Land Rover Range Rover Sport P360 SE 2,831
Tesla Model Y Long Range 2,845
Tesla Model 3 2,920
BMW X5 M 3,443

Annual rates for a single 35-year-old male, estimated using public rate filings sourced from First Interpreter. Rates do not represent actual quotes. Accurate as of July 2023. 

Are luxury cars more expensive to insure?

If you’re thinking about buying a luxury vehicle, you might be wondering, are luxury cars expensive to insure? The short answer is yes, it’s typically more expensive to insure a luxury vehicle than a standard sedan or SUV.  

One of the biggest factors that impacts the cost of auto insurance is the make and model of your vehicle. Cars with a higher value are usually more expensive to insure because if you get into an accident, the insurance company has to provide a higher payout to settle the claim.  

Most luxury cars also cost more to repair than non-luxury vehicles. If your luxury car needs to be repaired after an accident, the parts might be more expensive, or not as readily available as parts for less expensive cars. For example, Tesla parts may need to be specially ordered, and because the car is electric, the cost of parts might be higher compared to parts for a cheaper gas-powered vehicle. 

What is the best car insurance for luxury cars?

The best car insurance company for luxury vehicles is different for every driver. The right insurer for you depends on factors like your location, budget, and coverage needs.  

Based on average rate data, the cheapest car insurance companies for luxury vehicles are Progressive, State Farm, and Nationwide on average. These insurers offer a good selection of coverage options and discounts in most states. They also offer online and mobile policy management tools, where you can file a claim, make payments, and download your ID cards. 

However, depending on the type of luxury car you own, you might not be able to purchase car insurance from a standard car insurance company. For instance, some providers won’t insure exotic cars with a very high value, like Ferraris or Lamborghinis. 

In this case, you might need to purchase car insurance from a company like Allstate or Chubb, which underwrite policies for the highest-end vehicles. You can also look into a specialty car insurance company, like Hagerty, which insures classic cars, collector cars, and rare vehicles. 

How much should I expect to pay to insure my luxury vehicle?

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Your rates will vary based on where you live, your age, and other factors like your driving record

What is the cheapest luxury car to insure?

Among popular 2022 models, the cheapest luxury car to insure is the Mercedes GLC 300. The average premium for this vehicle is around $1,860 per year, or about $155 per month. However, remember that your exact premium will depend on factors like your car insurance company, location, and driving record.  

Luxury vehicles with cheap insurance:

Some luxury vehicles are cheaper to insure than others. Below, you can see the cheapest luxury vehicles to insure, based on 2022 popular models. 

Mercedes-Benz GLC

$1,867 average annual premium

The Mercedes-Benz GLC is a luxury compact SUV that offers a blend of comfort, performance, and technology. It features a range of advanced safety features, a high-quality interior, and multiple powertrain options, including a plug-in hybrid version. Erie Insurance, Progressive, and Nationwide are among the cheapest insurance companies nationwide for Mercedes-Benz GLC. 

Mercedes-Benz GLE

$1,869 average annual premium

The Mercedes-Benz GLE is a luxury mid-size SUV that offers a balance of power, comfort, and technology. It features a spacious interior, a range of safety features, and a choice of multiple powertrain options, including a plug-in hybrid version. Erie Insurance, Progressive, and Nationwide are among the cheapest insurance companies nationwide for Mercedes-Benz GLE. 

Acura MDX

$1,903 average annual premium

The Acura MDX is a luxury mid-size SUV that features a spacious interior, advanced safety features, and a powerful V6 engine. Nationwide, Progressive, and Travelers are among the cheapest insurance companies nationwide for Acura MDX for those seeking a luxury SUV that is both reliable and affordable to insure. 

Luxury vehicles with more expensive insurance 

Most luxury vehicles are more expensive to insure than non-luxury cars. If you’re in the market for a luxury car, it’s a good idea to get insurance quotes before you head to the dealership. That way, you can factor the cost of car insurance into your budget. Here are some of the most expensive luxury vehicles to insure, based on popular 2022 models. 

BMW X5

$3,443 average annual premium

The BMW X5 is a luxury mid-size SUV that offers a blend of performance, style, and technology. It features a spacious and well-equipped interior, advanced safety features, and a range of powerful engine options. Progressive, State Farm, and Erie Insurance are among the cheapest insurance companies nationwide for BMW X5. 

Tesla Model 3

$2,920 average annual premium

The Tesla Model 3 is a popular electric vehicle that offers impressive acceleration, advanced technology features, and a sleek design. With a range of up to 353 miles on a single charge, it is one of the most practical EVs on the market. Nationwide, State Farm, and Erie Insurance are among the cheapest insurance companies nationwide. 

Range Rover

$2,831 average annual premium

The Range Rover is a luxury SUV that offers a combination of off-road capability, high-end amenities, and powerful engines. With a spacious and refined interior, advanced technology features, and impressive towing capacity, it is a popular choice for those seeking a premium SUV. Progressive, State Farm, and Erie Insurance are among the cheapest insurance companies nationwide. 

Popular luxury vehicle brands

Some popular brands that make luxury vehicles include Mercedes-Benz, BMW, Lexus, Jaguar, Porsche, Cadillac, Lincoln, Acura, and Infiniti. These brands are known for their high-end features, advanced technology, exceptional performance, and premium materials, providing a luxurious driving experience. Luxury vehicles often come with a higher price tag, but for those who value comfort, style, and prestige, they are a top choice. 

Mercedes Insurance by Vehicle

Mercedes-Benz 

BMW Insurance by Vehicle

BMW

Lexus Insurance by Vehicle

Lexus

Porsche Insurance by Vehicle

Porsche

Cadillac Insurance by Vehicle

Cadillac

How to get cheap car insurance for your luxury vehicle

If you drive a luxury vehicle, there are several ways to potentially reduce your insurance premium. Here are some suggestions for saving money. 

  • Bundle your policies: You can typically get a cheaper car insurance premium when you purchase auto insurance and home insurance or renters insurance from the same insurance company. 
  • Look for discounts: Most car insurance providers offer discounts. Some of the most common discounts are safe driver discounts, multi-vehicle discounts, and payment discounts.  
  • Pay your premium in full: If you can afford to pay your annual car insurance premium upfront and in full, most insurance providers will give you a small discount. 
  • Choose high deductibles: For coverages that have a deductible, like collision or comprehensive insurance, choosing high deductibles can lower your monthly premium.  
  • Improve your credit score: In most states, your credit score will impact the cost of your auto insurance. If you can raise your credit score, you might be able to get a cheaper rate. 

To find the most affordable auto insurance policy for your situation, it can be helpful to shop around and compare quotes from several companies. You should also get new car insurance quotes every few years, or after filing a claim. Take our short quiz to see how much you can expect to pay to insure your luxury vehicle. 

Take our short quiz to see how much you can expect to pay to insure your luxury vehicle. 

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Frequently asked questions about luxury car insurance

Do luxury cars need more insurance?

Legally speaking, you aren’t required to purchase more car insurance or special types of car insurance if you drive a luxury vehicle. However, luxury vehicle owners should strongly consider a full coverage policy, which provides physical damage protection for their car. A minimum coverage policy doesn’t provide any coverage if the car is damaged or totaled in an at-fault accident or gets vandalized or stolen. 

Why is insurance higher on luxury cars?

Luxury cars often have higher premiums because of their value. Most luxury vehicles are worth more than a regular car. Because of this, when something happens to a luxury car, the insurance company has to pay a much higher settlement to fix or replace the car.  As a result, insurance providers typically charge more expensive premiums for luxury vehicles. 

Methodology

Rate Retriever rates are based on public rate filings obtained by analytics company First Interpreter. This data comes from the rating plans insurance carriers submit to each state’s department of insurance. Rating plans detail how each carrier calculates premiums using factors such as location, age, gender, and driving record, and they ensure that insurance premiums are both fair and competitive. 

For the data on this page, we made the following assumptions: a 35-year-old single male with a clean driving record and Good credit score. We adjusted this profile by vehicle make, model, trim, and year to determine the rates you see on this page.

These rates are not actual quotes and should only be used for comparative purposes. Your rates can vary significantly based on your unique driver profile.