Whether you’ve just purchased your first luxury vehicle or you always go upscale, insuring a high-dollar car, truck, or SUV comes with higher premiums. Take a closer look at luxury car insurance, and find out if there are some ways to save.
What Is Luxury Car Insurance?
Luxury car insurance is no different from other types of insurance; it just covers a higher-end car. In many cases, you can get car insurance for your luxury vehicle with a standard insurance company. If you buy an ultra-luxury car, standard insurance companies might not offer the right coverage. If this is the case, you may need to find an insurance policy through a company that specializes in providing insurance to high-end automobiles.
Why Is It More Expensive to Insure A Luxury Car?
Insurance for luxury vehicles is more expensive because the costs for replacing or repairing a luxury vehicle are higher. The parts are usually more expensive, and you’ll also find that the labor costs are generally higher. The higher labor costs might be because of the special tools and extra training technicians need to work on these specialty vehicles. Luxury cars also carry a higher risk of theft and vandalism, which contributes to the higher premium payments for insurance.
What Types of Luxury Car Insurance Coverage Do I Need?
When you buy a luxury car, you need to carry at least the minimum required coverage for your state, but in most cases, the minimum will not be enough to protect you and your passengers if you get into an accident. You’ll need insurance to cover damage to your luxury car and additional coverage to protect your finances.
Some of the added luxury car insurance coverage options you might consider include:
- Collision coverage. Collision insurance pays for damage to your luxury vehicle if you get into an accident with another vehicle. It will cover the cost of repairs after you pay the deductible or pay you the value of the vehicle if it’s totaled in an accident.
- Comprehensive coverage. Comprehensive insurance pays for repairs to your luxury vehicle that result from an incident that’s not an accident. It could be weather-related, such as hail, caused by vandalism.
- Gap insurance. Gap insurance is important coverage if you take out a loan for your new luxury car. Since it will depreciate as soon as you drive it away from the dealership, you might find that you owe your lender more than the car’s value. Gap insurance will pay the difference between what you owe and what your insurance company will pay out if you total your new luxury car.
- Personal injury protection. Personal injury protection (PIP) and medical payment coverage will help cover medical bills for you and any passengers in your vehicle if you get into an accident. If you have this coverage, your provider will pay regardless of who is at fault.
- Uninsured motorist property damage. Uninsured motorist coverage will protect your vehicle if you get hit or are involved in an accident with an uninsured driver.
How Can I Save On Luxury Car Insurance?
Just as you would shop around for insurance for a non-luxury vehicle, you want to shop around and get several quotes for your luxury car insurance. Some cost-saving tips you can use as you get quotes include:
- Choose drivers carefully. If you have young drivers in your household, you might want to consider a separate policy for your luxury vehicle. Teen drivers pay higher insurance rates because of their inexperience and statistically riskier driving habits.
- Increase your deductible. If you can increase your deductible, it will lower your premium. Just make sure you have enough money set aside to pay the deductible if you get into an accident.
- Look for discounts. If you ask your provider for any available discounts, you might find extra savings. Make sure you list all safety features and install theft deterrents to help you qualify for added discounts.
- Keep your luxury car in storage during the off-season. If you keep your car in your garage during the winter, you might be able to save on your insurance by removing certain coverage options while you’re not driving it. Just make sure to add the coverage back on when you take it out of storage.
Insurance Companies That Offer Luxury Car Insurance
Most insurance companies will provide insurance for the common luxury brands, such as BMW, Mercedes-Benz, Audi, and Cadillac. If you have an ultra-luxury car, such as a Maybach, Porsche, Alfa Romeo, or Aston Martin, you might need to look at specialty insurance companies.
Some of the mainstream auto insurance companies you can get quotes from for your luxury car insurance are:
Allstate
Allstate will insure luxury, exotic, collector, and antique cars.
State Farm
State Farm has a good reputation and reasonable rates for luxury vehicles. They usually pay out claims quickly, and if you stay with them for a long time, you might even see your rates go down.
USAA
USAA provides insurance to current and former military members and their families. They offer affordable rates for luxury vehicles, especially if you have an Audi, BMW, or Infinity.
Geico
Geico is a good choice for drivers with luxury vehicles. They offer competitive premiums, and their app makes it easy to add and remove coverage, file claims, and get quotes.
Progressive
In addition to coverage for standard vehicles, Progressive provides coverage for high-end and luxury vehicles, and they have competitive rates. This provider is popular for drivers looking for several different types of coverage.
Finding the right luxury car insurance for your vehicle might take a little extra research. You can expect to pay higher rates for luxury cars, but if it’s always been your dream to drive one, the extra cost is worth it.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
