Auto Insurance for Luxury Vehicles

Car insurance for luxury cars is about 18% higher than regular car insurance. This coverage can be up to $2,000 per year or $167 per month. To get affordable luxury auto insurance, owners can get low mileage coverage, higher deductibles, and more. Some auto insurance companies insure your vehicle based upon an agreed-upon value rather than the typical Kelley Blue Book value. The best way to save is to compare rates.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Sep 29, 2020

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Things to Remember

  • When you purchase a luxury vehicle, you may find that there is more research that goes into your decision compared to purchasing a more traditional vehicle.
  • There are usually higher costs associated with the purchase, maintenance, and insurance coverage for luxury vehicles.
  • If you are responsible for purchasing auto insurance for your vehicle, it can be difficult to know how to choose.
  • Compared to more traditional vehicles, the insurance for luxury vehicles may cost more or have different coverage requirements and conditions.
  • Before making a decision on the auto insurance for your luxury vehicle, it’s important to shop around and get quotes from different providers.

Choosing to purchase a luxury vehicle may be quite an exciting decision, especially when you find a vehicle that’s eye-catching, stylish, and unique.

It’s important to remember that luxury auto insurance may cost more than you’re accustomed to paying because of the following factors:

  • Theft
  • Vandalism
  • Higher repair costs

If you purchased a luxury vehicle and you’re shopping for coverage, it’s crucial that you learn about the risks associated with owning your new vehicle and how you can protect yourself from these risks.

How much is insurance on a luxury car? What are some luxury car insurance companies? We’ll answer those questions and more.

Ready to buy luxury car insurance? Compare luxury car insurance quotes right now. Just enter your ZIP code into our free comparison tool above to get started finding cheap auto insurance for your luxury vehicle.

Auto Insurance for Luxury Vehicles

Is insurance higher for luxury cars? When you go to purchase auto insurance for your new vehicle, it’s important to remember that covering a luxury vehicle is similar to covering other specialty vehicles including:

These vehicles can be more difficult to properly cover due to the higher costs associated with repairing or replacing them. Insurance providers may associate these vehicles with higher insurance costs, as these vehicles are more prone to theft or vandalism.

You can usually check the value of your vehicle on a site such as Kelley Blue Book, and keep in mind: the more expensive the vehicle, the higher your auto insurance will be.

Auto insurance companies might decide to use an agreed-upon value if you have a specialty or expensive vehicle. This is a type of insurance that determines your coverage based on an agreed-upon value rather than the standard value.

Normally, insurers use MSRP in order to determine how much coverage you’ll need. However, some cars just don’t follow that formula.

If you have specialty parts or an expensive vehicle, they may go with an agreed-upon value for your luxury vehicle.

This video from Heacock Classic goes over how these insurers may use agreed-upon value rather than standard value.

There are some instances where an insurance carrier may provide coverage under a traditional insurance policy, but this will vary based on the provider.

If they can provide you with the coverage you need under a traditional policy, you may be receiving the same limits and coverage options that other drivers would be getting; this may come with higher premiums and insurance-related expenses.

It’s important to know that your insurance carrier, whichever you choose to cover your vehicle, may charge you higher premiums than you anticipated initially.

The table below shows the average auto insurance rates for classic cars by state. If you have a classic vehicle, you can expect to pay more for your auto insurance coverage than you would with a typical, run-of-the-mill car.

Average Annual Classic Car Auto Insurance Rates by State
StatesAverage Annual Full Coverage RatgesAverage Annual Comprehensive RatesAverage Annual Collision RatesAverage Annual Liability Rates
Idaho$407.93$69.93$131.43$206.57
Iowa$421.48$110.12$131.85$179.51
Maine$422.29$62.99$155.99$203.32
Wisconsin$442.31$82.09$135.60$224.62
Indiana$453.02$73.24$150.17$229.61
Vermont$458.41$75.29$177.25$205.87
South Dakota$460.15$154.87$125.15$180.13
North Dakota$463.98$138.62$146.45$178.91
Ohio$473.14$72.97$161.90$238.27
North Carolina$473.45$81.65$176.15$215.65
New Hampshire$491.25$66.46$184.45$240.34
Nebraska$498.61$137.55$142.28$218.78
Virginia$505.60$81.92$168.31$255.37
Wyoming$508.46$148.54$167.30$192.62
Kansas$517.76$144.82$158.00$214.94
Montana$518.11$127.15$159.19$231.77
Alabama$521.09$93.79$190.78$236.53
Tennessee$522.86$89.07$185.44$248.35
Missouri$523.46$108.76$165.17$249.53
Utah$523.76$65.70$159.54$298.52
Hawaii$523.97$60.94$187.90$275.12
Minnesota$525.29$110.56$140.64$274.09
Illinois$530.74$76.88$185.83$268.03
Oregon$542.90$56.32$136.10$350.48
Arkansas$543.80$114.25$193.08$236.48
New Mexico$562.55$103.54$166.19$292.82
Kentucky$563.11$84.83$160.75$317.53
Washington$581.28$63.83$159.44$358.00
Pennsylvania$582.31$86.53$196.34$299.44
Arizona$583.71$111.67$166.78$305.26
South Carolina$583.86$108.56$159.04$316.25
Colorado$588.98$104.77$172.20$312.02
California$592.05$60.32$237.93$293.80
Mississippi$596.43$126.20$193.93$276.30
Oklahoma$603.19$135.50$191.08$276.61
West Virginia$615.47$122.57$197.80$295.10
Alaska$616.65$82.36$210.49$323.81
Georgia$629.04$95.51$199.10$334.43
Nevada$661.83$70.58$182.32$408.94
Texas$665.80$123.85$224.69$317.25
Maryland$669.87$91.63$212.39$365.84
Massachusetts$677.57$80.98$232.97$363.62
Connecticut$690.64$78.97$221.11$390.56
Delaware$744.34$73.49$191.26$479.58
Florida$754.28$69.92$169.78$514.58
Rhode Island$782.10$79.31$246.91$455.88
District of Columbia$798.44$139.94$281.20$377.29
New York$816.40$102.67$231.01$482.71
Michigan$818.40$92.91$248.30$477.19
New Jersey$829.67$78.81$229.12$521.74
Louisiana$843.22$129.10$248.62$465.50
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Your luxury car insurance cost for your premium is essentially a prepayment of the costs they may incur covering any claimed losses.

The premium could tempt you to lower your coverage limits in order to offset the higher costs. Before making any decisions like this, it’s important to assess the risks you face.

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How Auto Insurance Companies Calculate Your Rates

When vehicles cost more to repair or replace, insurance providers often need to offset the money they may spend if you file a claim or cause an accident.

You’ll also need to carry at least the minimum required liability coverage. This table lists each state’s requirements; search for yours to see exactly what you’ll need.

Minimum Required Liability Insurance Per State
States RequirementsCar Insurance RequirementsMinimum Liability Limits
AlabamaBI & PD liability25/50/25
AlaskaBI & PD liability50/100/25
ArizonaBI & PD liability25/50/15
ArkansasBI & PD liability, PIP25/50/25
CaliforniaBI & PD liability15/30/5
ColoradoBI &PD liability25/50/15
ConnecticutBI & PD liability, UM, UIM25/50/25
DelawareBI PD liability, PIP25/50/10
D.C.BI & PD liability, UM25/50/10
FloridaPD liability, PIP10/20/10
GeorgiaBI & PD liability25/50/25
HawaiiBI & PD liability, PIP20/40/10
IdahoBI & PD liability25/50/15
IllinoisBI & PD liability, UM, UIM25/50/20
IndianaBI & PD liability25/50/25
IowaBI & PD liability20/40/15
KansasBI & PD liability, PIP25/50/25
KentuckyBI & PD liability, PIP, UM, UIM25/50/25
LouisianaBI & PD liability15/30/25
MaineBI & PD liability, UM, UIM, Medpay50/100/25
MarylandBI & PD Liability, PIP, UM, UIM30/60/15
MassachusettsBI & PD liability, PIP20/40/5
MichiganBI & PD liability, PIP20/40/10
MinnesotaBI & PD liability, PIP, UM, UIM30/60/10
MississippiBI & PD liability25/50/25
MissouriBI & PD liability, UM25/50/25
MontanaBI & PD liability25/50/20
NebraskaBI & PD liability, UM, UIM25/50/25
NevadaBI & PD liability25/50/20
New HampshireFR only25/50/25
New JerseyBI & PD liability, PIP, UM, UIM15/30/5
New MexicoBI & PD liability25/50/10
New YorkBI & PD liability, PIP, UM, UIM25/50/10
North CarolinaBI & PD liability, UM, UIM30/60/25
North DakotaBI & PD liability, PIP, UM, UIM25/50/25
OhioBI & PD liability25/50/25
OklahomaBI & PD liability25/50/25
OregonBI & PD liability, PIP, UM, UIM25/50/20
PennsylvaniaBI & PD liability, PIP15/30/5
Rhode IslandBI & PD liability25/50/25
South CarolinaBI & PD liability, UM25/50/25
South DakotaBI & PD liability, UM, UIM25/50/25
TennesseeBI & PD liability25/50/15
TexasBI & PD liability, PIP30/60/25
UtahBI & PD liability, PIP25/65/15
VermontBI & PD liability, UM, UIM25/50/10
VirginiaBI & PD liability, UM, UIM 25/50/20
WashingtonBI & PD liability 25/50/10
West VirginiaBI & PD liability, UM, UIM25/50/25
WisconsinBI & PD liability, UM, Medpay 25/50/10
WyomingBI & PD liability 25/50/20
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If you have a very expensive car, be aware that liability doesn’t cover your own damages. You’ll also need to purchase comprehensive and collision auto insurance, which combined is usually referred to as full coverage.

As a luxury vehicle owner, you may be spending more on premiums to cover your vehicle from the risks it faces. You’ll want to do everything you can to reduce your risk factors.

One way you can reduce your risk is to limit who is listed as a driver on your policy, especially when it comes to luxury vehicles. If you have teenage drivers or high-risk drivers in your home, you may face higher costs due to their inexperience or poor driving habits.

These high-risk drivers are statistically involved in more accidents and incidents, which means just having them listed on your policy can be a red flag to your provider.

High-risk drivers normally have a higher number of accidents, claims, citations, and other high-risk behaviors. These individuals may also have a history of claims or a poor driving record, both of which are red flags to an insurance provider.

This poor record could lead to your provider raising your rates or being unwilling to provide you with coverage.

Another way to reduce your risk is with your insurance deductible, which is the amount of any claimed loss that you are responsible for covering.

The deductible is normally a predetermined amount — such as $500 of any claimed loss — that will be deducted from any settlement before you receive it.

Deductibles also help insurance providers reduce the number of claims filed. Since the deductible applies to every claimed loss, the policyholder is less likely to file a claim for a relatively minor issue they can pay for themselves.

There may also be discounts you qualify for in order to help reduce your premium costs, such as low mileage discounts or discounts for installed theft deterrents.

Make sure that you speak to any potential provider about discounts or credits you may qualify for. It’s important to figure these benefits in when you make your decision about purchasing coverage.

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Choose the Right Auto Insurance Company

Luxury vehicles face the same risks as more traditional vehicles, but the risk for vandalism, theft, and expensive repairs is greater. If a claim is filed, the costs associated with repairing or replacing your car may be several times higher than other vehicles.

Before you choose your insurance policy, it’s important to make sure you look at getting coverage limits that will meet or exceed the expected risks your car will face.

When looking for auto insurance, speak to any potential provider about the policies they offer that would protect a luxury vehicle. Make sure to specifically ask about:

  • Limits
  • Terms
  • Conditions
  • Deductibles

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Frequently Asked Questions: Auto Insurance for Luxury Cars

Below we’ve addressed some frequently asked questions about auto insurance for luxury cars. Keep reading to learn more.

#1 – What is the cheapest luxury SUV to insure?

The cheapest insurance for luxury cars depends, as insurers determine your rates differently. However, they do look at the value of the vehicle and its safety and crash test ratings.

The Buick Envision, Lexus UX, and BMW X1 often have among the lowest rates.

#2 – What are some high-end auto insurance companies?

There are some auto insurance companies that deal specifically in high-end auto insurance. These companies cover vehicles that require special consideration, including high-end luxury cars and classic cars.

These luxury insurance companies include Heacock Classic, Hagerty Insurance, and Grundy Insurance.

It’s important to choose an auto insurance policy that will meet or exceed your needs, so shopping around for quotes is essential before making your coverage choice.

Looking for affordable luxury car insurance from top luxury car insurance companies? Enter your ZIP code into our free rate comparison tool to find the best luxury car insurance rates.

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