Cheap Insurance Companies for Luxury Cars
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Choosing the right insurance is crucial in protecting your luxury or exotic vehicle. Knowing that your car is fully covered can give you peace of mind and allow you to enjoy your vehicle whether it’s parked or on the road. But car insurance can be expensive, especially when insuring a high-value luxury car.
Fortunately, several companies offer cheap insurance for a luxury car, so you can protect your investment with monthly premiums that fit into your budget.
- Since luxury cars cost significantly more than traditional vehicles, they are also more expensive to insure.
- Several car insurance companies offer cheap car insurance for luxury cars, which can help you save money.
- In addition to standard coverage options for your luxury car, you may consider gap insurance, guaranteed or agreed value coverage, and new car replacement coverage.
- While luxury car insurance can get expensive, shopping around and looking into available discounts can help to keep your premium costs down.
Cheapest Car Insurance Providers for a Luxury Car
When shopping for cheap car insurance for luxury cars, you can save time by starting your search with the following companies. These car insurance providers offer luxury car coverage at some of the cheapest rates available.
Average Annual Premium for Typical Cars: $1,139
Average Annual Premium for Luxury Cars: $1,510
MileAuto offers pay-per-mile car insurance policies that can help drivers save money. According to MileAuto, this per-mile model helps drivers save 30 to 40% off their car insurance rates.
Mile’s full coverage insurance includes the minimum liability policies required by your state. You can also increase your liability coverage if you like. You will also have the option to include comprehensive and collision coverage; optional coverages like rental vehicle reimbursement and roadside assistance are also available.
With Mile’s per-mile insurance, you must photograph your odometer once a month. You will pay a base rate for your insurance plus a rate for the miles that you’ve driven.
Mile insurance is available in Arizona, California, Georgia, Illinois, Ohio, Oregon, Pennsylvania, Tennessee, and Texas.
Average Annual Premium for Typical Cars: $1,369
Average Annual Premium for Luxury Cars: $1,711
Mercury Insurance offers affordable rates and has built a reputation for providing quality customer service. The customer portal allows you to change your policy or print ID cards quickly, and Mercury’s hotline is available 24 hours a day for claims reporting. It guarantees any repairs made at a Mercury-authorized repair shop for as long as you own your vehicle, standing behind its service.
Mercury offers many coverage options, including collision and comprehensive, ride-hailing, and rental car insurance.
If you decide to work with Mercury, you will connect with a local insurance agent who can help to tailor your coverage to your needs. Mercury consistently earns A ratings from AM Best.
Average Annual Premium for Typical Cars: $1,623
Average Annual Premium for Luxury Cars: $2,206
Founded in 2016, Clearcover is a younger insurance company specializing in auto insurance powered by online tools. This tech-friendly insurer offers a robust app that you can use to find and purchase coverage and file and submit claims.
Clearcover boasts a fast, hassle-free claims experience. If you need to file a claim, you can submit photos of the damage through the app. The technology scans and analyzes the car and issues a payment. According to Clearcover, it pays most claims in less than a week.
It offers typical coverage options, including comprehensive, collision, and liability. Rideshare insurance is also available. Currently, Clearcover Insurance is available in 19 states.
Compare Auto Insurance Quotes for Your Luxury Vehicle
Average Annual Premium for Typical Cars: $1,963
Average Annual Premium for Luxury Cars: $2,206
Esurance, an Allstate company, focuses on providing simple, transparent, and affordable car insurance. Available coverages include collision, comprehensive, roadside assistance, rental car, loan/lease gap coverage, and more. Drivers can add renter’s insurance to an auto policy for a multi-policy discount.
The DriveSense program can help you to save additional money with Esurance. The DriveSense app logs your driving habits, patterns, and behaviors, providing weekly recaps to help you drive safely. You’ll get a discount for enrolling in the program, and good driving habits can help you to secure additional discounts on your car insurance.
Esurance has an A+ AM Best rating.
Average Annual Premium for Typical Cars: $1,812
Average Annual Premium for Luxury Cars: $2,350
Safeco Insurance, a Liberty Mutual company, offers standard car insurance coverages like liability and collision and specialty coverage options, including classic car and umbrella insurance. The company has built a reputation for providing quality customer service, and its customer care line is available 24/7.
Safeco policies are sold exclusively by independent agents, allowing personalized service. The company also offers plenty of online features, including accessing your ID cards and filing a claim in just 10 minutes.
Direct Auto Insurance
Average for Typical Cars: $2,306
Average for Luxury Cars: $2,909
Direct Auto specializes in high-risk drivers but also insures lower-risk drivers. Insurance coverage options include personal injury protection, accidental death coverage, roadside assistance, and more.
The company offers flexible payment options, including deciding which day of the month your monthly payments are due. The insurance plans feature low down payments, and multiple discounts can help you save money, including up to a 25% discount for safe driving.
How Much is Luxury Car Insurance?
Luxury car insurance costs more than traditional auto insurance because of the higher value of the vehicles. Since your rates depend on your vehicle value, the price of your car insurance will depend on your specific vehicle, the types of coverage, and the coverage maximums that you choose.
Based on the cheapest companies listed here, a driver could pay $1,510 – $2,900 annually for coverage. However, how much you pay can increase or decrease based on your vehicle, driving record, location, age, gender, and more.
The best way to see how much you’ll pay is to compare quotes from several auto insurance companies.
At Compare.com we make it easy. Simply fill out our auto insurance comparison calculator and we’ll compare rates from our 65+ carriers to find the lowest quotes for you.
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What to Look for in Luxury Car Insurance
When securing auto insurance for your luxury vehicle, there are several considerations to keep in mind. Here are the top ones to look out for.
Consider whether the coverage fits within your budget when shopping for luxury car insurance. There are plenty of cheap car insurance options for luxury cars. Companies like Mile Auto and Mercury will insure luxury vehicles for premiums close to what you would pay to insure a traditional car.
But it’s also essential to look beyond premium price and choose an insurance policy that’s right for your needs. Research elements like the insurance company’s reputation for providing quality customer service, the overall claims process, and the time it typically takes to process a claim.
Next, look for the specific type of coverage that you need. When insuring a luxury vehicle, less-common coverage options may be necessary to ensure that your vehicle is fully covered. Some possibilities include guaranteed value replacement and new car replacement policies. Choosing policies with maximum limits that will give you the coverage you need is also important.
Remember to look for an insurance provider that provides the type of interactions you want. For example, you prefer building relationships and receiving more personalized service. In that case, you may choose a company that uses local agents. If you prefer to use technology, then a company with the latest technology and a quality app may be a better fit.
Luxury Car Insurance Options
Many of the coverage options for luxury and exotic cars are similar to the types of insurance you might choose when insuring a typical vehicle. It’s essential to be sure you choose the right kind of coverage. Because these vehicles have such high value, a traditional full-coverage policy might not fully protect it.
If you own an exotic or luxury car and want maximum protection for the vehicle, your car insurance should consist of a combination of the following options:
- Liability: Nearly every state requires drivers to carry liability insurance to drive a vehicle. This type of coverage pays for any property damage or injuries that another person sustains due to an accident you have caused. Most policies are broken down into property damage and bodily injury coverage. This type of insurance helps to avoid a situation where you need to pay out-of-pocket to cover expenses, like the other driver’s medical bills which can quickly add up.
- Collision Coverage: A collision coverage policy pays for damage that your vehicle sustains in a collision with another car or an object, like a tree, or a fence. This type of coverage helps you avoid paying for repairs to your vehicle out-of-pocket if you’re responsible for an accident.
- Comprehensive Coverage: Comprehensive coverage includes damage your vehicle might sustain if it isn’t a collision. This policy covers theft, vandalism, animal-related damage, weather events, falling objects, and more.
- Guaranteed Value Coverage: Guaranteed value coverage is also called agreed value coverage. With this policy, your insurance company will reimburse you for the value if your vehicle is damaged. The policy guarantees that you will get the total amount your policy indicates. Your vehicle’s value won’t depreciate over time, and this policy can protect your vehicle’s full value. It benefits you as a luxury or exotic car owner if you’ve put extensive work or enhancements into, making it difficult to prove that vehicle’s value on paper.
- New Car Replacement: New car replacement coverage is an add-on that will protect you if your vehicle is totaled. With this coverage, your insurance company will pay to replace your car with a new vehicle of the same make and model. Rather than just paying you for your car’s value at the time of the loss, which could have depreciated, your insurance company will pay for the entire cost of a new car. This type of coverage is typically only available for vehicles that are two years old or younger.
- Gap Insurance: Given the higher price of luxury cars, it’s likely that you will need gap insurance if you’ve recently taken out a car loan to buy the vehicle. Gap insurance pays off any remaining balance on your auto loan after a car accident. It makes up the difference between the actual cash value of your car at the time of the accident and the amount you owe on the vehicle. Gap insurance helps prevent a situation where you still owe money on a car you no longer have, even after insurance has paid the maximum amount on your policy.
There is no formula to determine which coverage options you need for your luxury vehicle. Instead, it’s important to consider your vehicle’s value, whether you have an auto loan on the vehicle, and how much protection you want your car insurance to provide.
How to Save on Luxury Car Insurance
Because you’re insuring a more expensive luxury vehicle, your car insurance premiums will be higher. Fortunately, there are several ways that you can save money on luxury car insurance.
Take Advantage of Available Discounts
As you shop for car insurance, consider the discounts each insurance company offers. Typical discounts include automatic bill pay, multi-vehicle, multi-policy, and good driver discounts. If you qualify for multiple discounts, they can add up, and you can save significant money on your premiums.
Consider telematics-based discounts as well. Some insurance companies now allow you to drive with an app on your phone or device attached to your car that tracks your driving habits. The app monitors risky behaviors like swerving, hard braking, and speeding. Then it reports that data back to the insurance company. The company reviews the data and offers good drivers discounts for their safe driving habits, saving you extra money.
Choose a Higher Deductible
Opting for a higher deductible can decrease your monthly premiums, though this approach has some risks. If you choose a higher deductible and eventually file a claim, you will have to pay the higher amount before your insurance company pays its portion of your expenses.
This strategy might pay off if you never have to file a claim, but it won’t work well if you do. Choosing a deductible that you could pay unexpectedly is essential. You should set aside money for your deductible in a savings account to know it’s available if you need it.
Consider a Pay-Per-Mile Policy
You can save money on your insurance by choosing a pay-per-mile policy instead of more traditional car insurance coverage. With a pay-per-mile policy, you will pay a flat monthly fee and an additional fee based on how far you drive each month.
These policies can save you money if you have a luxury vehicle that you don’t drive often. You may be required to submit monthly photos of your odometer reading, or you might have to drive with an app on your phone that tracks your mileage.
Boost Your Credit Rating
Many car insurance companies consider your credit rating when determining your risk as a driver. They believe low credit scores indicate poor financial responsibility, meaning that you’re riskier to insure.
Building your credit is a long-term process but can pay off with lower insurance rates. To start, set up automatic payments on your monthly accounts, like your credit card and cell phone bill. Those automatic payments will help to ensure you always make your payments on time, avoiding a negative impact on your credit.
It’s also important to focus on keeping your credit usage low. Also focus on keeping your oldest credit lines open and maximizing the length of your credit history.
Focus on Safe Driving
A history of at-fault accidents, traffic violations, or speeding tickets indicates that you’re a higher-risk driver. It will cause your car insurance company to charge you higher premiums. Focus on driving safely to help keep your rates down.
In addition to driving safely, you can take a safe driver course in exchange for a discount from your car insurance provider. Contact your car insurance company to find out if they offer such a discount and which courses qualify for the discount.
Shopping around is the best way to save money on your luxury car insurance. Every car insurance company uses its own algorithm to determine your premium prices and set their rates. You might pay two different costs for the same coverage from two companies.
Compare.com makes it easy to shop for car insurance and determine which company gives you the best deal. You’ll have to fill out a quote request form, which takes about five minutes. Then, Compare.com shops around for you, gathering quotes from up to 65 insurance companies and sending you the best options to review. You can easily compare those best policies and choose the one that’s the right fit for your needs. Compare.com users save an average of $720 per year on their car insurance.
See How Much You Can Save on Your Luxury Car Insurance
See How Much You Can Save on Your Luxury Car Insurance
FAQs About Cheap Luxury Car Insurance
Is insurance more on a luxury car?
Luxury cars are more expensive to insure than your more typical vehicle because they carry a higher value. When insuring a luxury vehicle, an insurance company assumes the increased risk of paying more to repair or replace that vehicle if you need to file a claim. As a result, insurance companies charge higher premiums on luxury vehicles to compensate for that increased risk.
What is the best luxury car insurance company?
Car insurance companies like State Farm, Allstate, and Nationwide all insure luxury vehicles and have excellent reputations. When deciding which company is best, it’s essential to consider not only the price of the policy. You’ll also look at how well the coverage fits your needs, the company’s reputation for providing quality service, and the claims process.
What companies insure luxury vehicles?
Most car insurance companies will insure luxury vehicles, including GEICO, Nationwide, Liberty Mutual and Progressive. Policy coverage and add-on options will differ between companies, so it’s crucial to find a company that offers the specific type of coverage you need.
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