The Best Car Insurance Companies for Luxury Cars
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When you buy a luxury vehicle, you’re purchasing more than a mode of transportation; you’re buying style, performance, and status. All of which contribute to the incredible driving experience a luxury car offers. But luxury vehicles have notoriously high car insurance rates.
It’s worth protecting your car to the highest degree, but that doesn’t mean you can’t save money. This article will cover everything you need to know about luxury car insurance, from why it costs so much to how to lower your premiums. By the end, you’ll be able to confidently shop for and find the best policy for the best price.
Let’s get you covered.
- Policies for luxury vehicles vary depending on the driver. Some drivers pay more (or less) depending on their location, driving record, and other factors.
- Luxury cars cost more to insure because they have high-cost materials, which makes them expensive to replace. Some luxury models also have higher rates of vandalism and theft.
- Insurance companies assign even higher premiums to luxury sports cars because the vehicle’s high-speed capabilities indicate a higher risk of car accidents and more consequential damage when one occurs.
- Luxury car owners should purchase robust insurance policies to protect their assets. Collision, comprehensive, and uninsured/underinsured motorist protection are all highly recommended. Some may be required. Other coverage types may not be necessary but are still a good idea.
- Drivers can save money on luxury car insurance by using discounts (especially bundling), raising deductibles, and comparing car insurance rates. If their luxury vehicle is not their primary vehicle, they can save money using usage-based car insurance.
What is Luxury Car Insurance?
Luxury car insurance policies cover high value vehicles with high-end materials, parts, and features. These policies consider the higher service costs and replacement values and the higher incidence of theft and vandalism.
Exactly which cars are considered luxury vehicles will differ somewhat from insurer to insurer. But the following car makes usually qualify:
- Aston Martin
- Genesis Motors
- Land Rover
Luxury vs. Exotic Cars
An essential distinction between luxury and exotic cars (sometimes labeled super-cars) exists. Though both are high-quality, exotic cars are high-performance vehicles that go fast – very fast.
Exotic car insurance policies are more expensive, as the cars are usually more expensive than average luxury vehicles. The high horsepower also increases the risk of extensive damage in car accidents.
Several car manufacturers produce both luxury and exotic cars, so distinguishing them is confusing. Moreover, the line between luxury sports cars and exotic ones varies by company, and insurers determine labels based on the vehicle’s horsepower, number of cylinders, and size.
How Much Does Luxury Car Insurance Cost?
Drivers of luxury vehicles should expect to pay more than what you’d pay to insure a traditional vehicle. Costs vary widely depending on several risk factors, including
- Your vehicle: The make, model, age, and specifications of your car influence its value and replacement cost, which affects your premium cost.
- Where you live: Areas with more traffic congestion and higher claim rates typically come with higher insurance rates.
- Your driving history: Drivers with accidents on their driving records pay more (sometimes much more) than drivers with clean records.
- Your vehicle: The make and model of your car affect rates because every car has different repair and replacement costs.
- Your credit score: Drivers with higher credit scores pay lower rates on average.
Components of a Luxury Car Insurance Policy
Every driver needs to meet state minimum car insurance requirements. But people who drive high-end vehicles need more. They should purchase a full coverage policy plus additional coverage options to protect them completely. Lenders will require different insurance options, but even cars that are paid in full need more than state minimums.
Here are additional coverage options every luxury vehicle driver should consider:
- Collision Coverage: This covers damage to your car in an at-fault car accident. It covers the vehicle up to its actual cash value (ACV).
- Comprehensive Coverage: This covers damage to your vehicle that isn’t related to a car accident. That includes natural disasters (flood, hail, tornado), but each insurance company will have its definition. It also covers you up to the ACV.
- Gap Insurance: It covers the owner when the car’s ACV is less than what you owe on your car loan in the early stages of car ownership since vehicles depreciate faster than the principal. Without gap insurance, car owners must cover the difference if the car is totaled.
- Uninsured and Underinsured Motorist Protection: This type of insurance coverage is mandatory in some states, but it’s a must for luxury car drivers everywhere. It covers you if you’re hit by some without car insurance or who isn’t carrying enough coverage. Nationally, about 12% of drivers drive without insurance.
- Custom Coverage: If your car has non-standard equipment, such as specialized stereo equipment, you’ll need a rider written to cover those features.
- Umbrella Coverage: Though not part of your car insurance policy, many auto insurers offer umbrella insurance (and a bundling discount). These policies extend your liability coverage and protect you if someone sues you for damages that exceed your car insurance limits.
Some carriers offer agreed value on these vehicles and agreed value should be encouraged when you’re is purchasing a high-end vehicle to ensure you can recover financially if it’s ever declared a total loss.
Cheap Car Insurance Companies for Luxury Vehicles
Though car insurance costs more for luxury vehicles, some insurance companies are known for offering lower rates on average. It’s important to remember that the cheapest car insurance company, in general, isn’t always the most affordable for you. The best way to know which company will offer you the best policy at the best price is to compare companies side-by-side.
That said, here are some of our favorite providers for cheap luxury vehicle car insurance.
- Pros: Low average rates, high customer satisfaction, many options, and discounts.
- Cons: Not cheap for drivers with speeding tickets or young drivers, doesn’t offer gap coverage
State Farm offers affordable luxury car insurance to drivers with clean driving records. You’ll also find full-service options for car insurance coverage and the ability to add customized coverage features to your policy. State Farm offers a ton of discounts and bundling options. The company also relies on local agents, so that you can expect hands-on service from an appointed representative.
According to J.D. Power, State Farm customers report high customer satisfaction and claims satisfaction levels. A.M. Best gives the company a “superior” financial strength rating. And the company has received fewer complaints than the national average, according to the National Association of Insurance Commissioners (NAIC).
- Pros: Lots of car insurance policy options, discounts, and a low number of customer complaints.
- Cons: Limited home and renter’s insurance options for drivers who want to bundle low customer satisfaction rates.
Progressive insurance offers competitive rates for luxury cars and a ton of bells and whistles customers love. The company makes it easy to explore and access insurance policies and products online and with a mobile app. Progressive also offers aggressive discount programs, including a telematics program that rewards customers for practicing safe driving.
Though you can save by bundling with Progressive home insurance, you’ll find limitations with home and renter’s products. If you’re considering switching everything to Progressive, review your home or renter’s needs with your insurance agent before deciding. Progressive customers report lower levels of customer satisfaction than they do for other insurers on this list. Even so, customer complaints are lower than the industry average, according to the NAIC.
- Pros: Lots of insurance products (including business insurance products) for bundling. Customizable discount programs.
- Cons: Higher than average customer complaints and lower satisfaction levels. Only available in some states.
With Nationwide, you’ll have access to many car insurance options and insurance products, and easier to get everything you need from one insurer. Saving money with Nationwide feels customized, as the company offers a variety of savings programs, including a few telematics programs.
On the other hand, Nationwide customers report lower customer satisfaction and claims satisfaction levels than other insurers. Moreover, the company also received higher customer complaints than the industry average (NAIC). Finally, Nationwide car insurance is unavailable in Alaska, Hawaii, or Massachusetts.
- Pros: Cheap rates, various products and discounts, and easy-to-use technology.
- Cons: Not the cheapest for high-risk drivers and doesn’t offer gap coverage.
GEICO offers some of the cheapest rates for car insurance in the country, including rates for luxury vehicles. Though the company won’t offer policies on all luxury cars, you can expect policies for most — especially for popular makes and models. The company also provides many options for savings, whether through telematics programs, bundling options, or multi-vehicle discounts.
The company offers a variety of insurance products and policy perks, including accident forgiveness, emergency roadside assistance, and 24/7 customer service. Even better, customers report decent claims and customer satisfaction levels with GEICO and report an average number of customer complaints based on its size.
- Pros: Highly customizable auto and home insurance options, low customer complaints, and average customer satisfaction rates.
- Cons: Higher rates than most on this list, so best suited for drivers who need customized policies.
To be upfront, Allstate doesn’t consistently offer the cheapest rates compared to others on this list. And it has a limited number of discounts compared to other companies on this list. But, for luxury drivers with complicated home insurance policies they want to bundle, Allstate is a great option.
Allstate offers one of the most extensive ranges of coverage options on this list. Drivers with specialized insurance needs can typically get a customized policy that covers all their needs, whether for home or auto.
Allstate customers report average claims and customer satisfaction rates, plus lower customer complaints, making them a perfect choice for the right driver.
- Pros: Competitive rates, excellent customer service, and a service team that knows the particular needs of your area.
- Cons: Cost and value vary depending on the company. Limited availability.
State and regional insurance companies, such as Erie Insurance, offer competitive rates to drivers in their service areas. While these smaller companies may not have the name recognition of the rest of the insurers on this list, don’t count them out. Not only can you find excellent customer service, but many regional companies can also offer competitive rates and even beat out national brands.
What is the Best Luxury Car Insurance Company?
No one company universally offers the best policy to every luxury car driver. The key is to find the best car insurance company for you and your vehicle. That starts with getting clear on what you want from your car insurance policy, including the coverage limits, customer service level, and price. And be sure to prioritize those needs based on your preference.
Next, you should compare rates, policies, and reviews of all the car insurance companies offering you a policy. Ask yourself, “Which of these insurers will best meet my needs?” Ultimately, you’re the one who should decide which company is best.
What to Look for When Getting Luxury Car Insurance
There are so many ways to look at and evaluate an insurance provider. Ultimately, your particular needs and preference will determine which company is best. Some factors to consider:
- Customization: Can you create a policy tailored to your vehicle’s specifications and other considerations?
- Customer service: Will you be able to get in touch with a human being right away? Do you want to have multiple options for contacting your insurer?
- Technology: Does the insurer offer a high-quality website and mobile app? Can you store your insurance card digitally?
- Cost: What’s your budget for auto insurance?
- Discounts: Does the insurance company offer discounts you can use?
How to Save on Luxury Car Insurance
Despite the higher price tag, you can save money insuring your luxury vehicle. Here are the most effective ways to lower your rate.
Evaluate your deductible
First, you can tweak your policy to lower your rate by raising your deductible. Your insurance company will charge you less if you are willing to cover more of a claim. Don’t raise your deductible so high it’s impossible to protect your end of the deal.
Another way to lower your rate is by using discounts. Typically, the best discount is bundling your car insurance with another product, which is popular with homeowner’s insurance. Still, renter’s insurance, life insurance, and umbrella insurance policies will also work. You can usually bundle your auto policy with any other insurance product your insurance company offers.
Buy a policy tailored to your car’s use
If you only drive your luxury vehicle during certain times of the year, you can save by switching to car-storage insurance. You can also try usage-based insurance and pay by the mile.
Compare insurance quotes regularly
Finally, compare rates before you buy and compare rates often. Since rates change, you always need to determine which company will offer you the best deal. That’s why it’s essential to comparison shop every six months. Compare.com provides free tools to compare rates from several insurers in less than ten minutes.
FAQs about Luxury Car Insurance
Do luxury cars cost more to insure?
Luxury vehicles cost 15% to 20% more than the average sedan. Of course, how much more it costs to insure a car will depend on the vehicle’s year, make, and model. Other factors, such as where you live and your driving history, also significantly impact your price.
Why do luxury cars have higher insurance?
Luxury vehicles cost more to repair and replace if they are damaged, which leads to higher insurance premiums. Some luxury vehicles have higher rates of vandalism and theft, which means owners of these vehicles are more likely to make a claim. Because these factors make it more likely for insurers to cover a claim, they will charge you more to cover this higher financial risk.
How much is Lamborghini insurance per month?
You should expect to pay between $850 and $2,500 a month to cover the cost of Lamborghini car insurance. Costs can be higher or lower depending on where you live and your driving record. Some Lamborghini owners can save thousands a year simply by taking advantage of discounts offered by insurance companies.
Who will insure a Lamborghini?
Lamborghinis are among the most expensive cars to insure, which is why many insurance companies don’t often offer policies for these vehicles. Allstate, Farmers, and State Farm are all well-known providers that tend to offer policies to Lamborghini drivers. Drivers with long-standing relationships with their insurance companies may have luck getting a policy based on their relationship with the company, so it never hurts to ask.
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