When it comes to insuring luxury cars, the rates can be significantly higher compared to other vehicles. This is due to luxury models’ high value, advanced technology and the cost of repairs. In this guide, you’ll find the reasons behind the higher insurance premiums for luxury cars and how you can lower your premiums.
Why do luxury cars cost more to insure?
Luxury cars are built with premium materials and advanced technology, making them more expensive to repair or replace. The parts used in these vehicles are specialized and can be hard to find, increasing the cost and time it takes to fix or replace a damaged car.
This higher cost is reflected in insurance premiums, as insurers consider the potential financial risk of repairing or replacing luxury vehicles. For instance, Maserati Quattroporte and Maserati Ghibli are two of the most expensive luxury car models, with an annual insurance cost of $7,090 or $6,386, respectively.
Many luxury cars are equipped with cutting-edge technology, such as advanced safety features and high-performance engines. Moreover, some luxury vehicles may use custom parts that are more expensive than those found in other cars, further increasing policy rates.
Other factors that influence car insurance premiums
Insurance companies take various factors into account when determining premiums other than the make and model of your car.
- Age: Your age plays an important role in calculating insurance rates. Younger drivers, especially those under 25, typically face higher premiums because they are considered higher-risk drivers due to inexperience.
- Location: Where you live can significantly affect your policy cost. Your premiums are likely to be higher if you live in an area with high car theft rates, accidents or traffic congestion.
- Coverage level: The level of coverage you choose is another important factor that influences the insurance cost. A full coverage policy with higher liability limits costs more to insure than a liability-only or state minimum policy.
- Annual mileage: How much you drive affects your insurance rates. The more you drive, the higher the risk of being involved in an accident, so drivers who use their car for long-distance travel may have to pay higher premiums than those with a shorter commute.
- Driving habits: If you drive frequently at night, in bad weather or in high-traffic areas, your insurer may consider you a higher risk. Safe driving habits, such as obeying traffic laws and avoiding distractions, can help lower your premium over time.
Car insurance rates for luxury models
Maserati Quattroporte is the most expensive model to insure, with an average car insurance cost of $7,090 or $591 per month, followed by Maserati Ghibli and Mercedes-Benz S-Class. On the other hand, Audi A3, Acura TLX and Acura Integra are more affordable than other luxury cars on our list.
The table below shows various luxury models’ annual, 6-months and monthly car insurance rates.
| Make Model | Annual rates | 6 months rates | Monthly rates |
|---|---|---|---|
| Maserati Quattroporte | $7,090 | $3,545 | $591 |
| Maserati Ghibli | $6,386 | $3,193 | $532 |
| Mercedes-Benz S-Class | $5,211 | $2,605 | $434 |
| BMW 8 Series Gran Coupe | $4,929 | $2,464 | $411 |
| Genesis G90 | $4,927 | $2,464 | $411 |
| BMW 8 Series | $4,853 | $2,427 | $404 |
| BMW 7 Series | $4,827 | $2,413 | $402 |
| Porsche Panamera | $4,586 | $2,293 | $382 |
| Audi A8 | $4,451 | $2,226 | $371 |
| Lexus LC | $4,437 | $2,218 | $370 |
| Lexus LS | $4,158 | $2,079 | $346 |
| Audi A7 | $3,787 | $1,893 | $316 |
| BMW 4 Series Gran Coupe | $3,637 | $1,818 | $303 |
| Mercedes-Benz E-Class | $3,587 | $1,793 | $299 |
| Volvo S90 | $3,580 | $1,790 | $298 |
| BMW 4 Series | $3,564 | $1,782 | $297 |
| Jaguar XF | $3,520 | $1,760 | $293 |
| Alfa-Romeo Giulia | $3,484 | $1,742 | $290 |
| Genesis G80 | $3,482 | $1,741 | $290 |
| Audi A6 | $3,459 | $1,729 | $288 |
| BMW 5 Series | $3,414 | $1,707 | $284 |
| Infiniti Q50 | $3,391 | $1,696 | $283 |
| Lexus IS | $3,223 | $1,611 | $269 |
| Genesis G70 | $3,220 | $1,610 | $268 |
| BMW 3 Series | $3,182 | $1,591 | $265 |
| Lexus RC | $3,173 | $1,587 | $264 |
| Audi A5 | $3,105 | $1,553 | $259 |
| Volvo S60 | $3,074 | $1,537 | $256 |
| Audi A4 | $2,993 | $1,497 | $249 |
| BMW 2 Series | $2,962 | $1,481 | $247 |
| BMW 2 Series Gran Coupe | $2,962 | $1,481 | $247 |
| Cadillac CT5 | $2,954 | $1,477 | $246 |
| Mercedes-Benz C-Class | $2,947 | $1,474 | $246 |
| Lexus ES | $2,924 | $1,462 | $244 |
| Mercedes-Benz CLA-Class | $2,890 | $1,445 | $241 |
| Cadillac CT4 | $2,861 | $1,430 | $238 |
| Audi A3 | $2,795 | $1,397 | $233 |
| Acura TLX | $2,668 | $1,334 | $222 |
| Acura Integra | $2,598 | $1,299 | $216 |
How to reduce insurance costs on a luxury car
Owning a luxury car is no less than a dream for many, but it often comes with a hefty insurance price. Reducing insurance costs on a luxury car can be tricky but there are ways to mitigate the increased premiums.
- Shop around and compare quotes: Insurance companies offer different insurance rates based on your driving profile and other factors. Make sure you get quotes from multiple companies to find the best deal.
- Increase your deductible: Raising your deductible (the amount you pay out of pocket before insurance kicks in) can lower your premium.
- Bundle policies: You can bundle your luxury car insurance with other policies, such as home or renters insurance, to get a multi-policy discount.
- Install anti-theft devices: Luxury cars are attractive to thieves, so adding alarms, GPS trackers, or immobilizers can reduce your risk—and your insurance rate.
Final thoughts
Luxury cars come with higher insurance costs because they’re more expensive to repair, often include advanced features and parts and can be more attractive to thieves. However, rates can vary based on your driving history and location. If you’re considering a luxury car, getting quotes beforehand is a good idea, so you know the potential costs.
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