Is it More Expensive to Insure a Luxury Car?

Luxury car insurance is frequently more expensive than ordinary vehicle insurance. Due to the fact that car insurance is designed to safeguard your vehicle, the high cost of a luxury car invariably results in higher insurance premiums.

Is it More Expensive to Insure a Luxury Car?

This post contains affiliate links, which means we’ll receive a commission if you purchase through our links, at no extra cost to you. Read the Disclosure here.

Author & Car Tech Expert  Bio-Dave B

Author & Car Tech Expert Bio-Dave B

Hey, I’m Dave and I'm a technical writer here at Cars).  I’m a Red Seal qualified Auto Service Technician with over 10 years experience working on Classic and Modern Cars.I've worked for Maserati, Benz, BMW, Mini, Audi, and Porsche main dealers. My passion is cars...Everything about cars....Next to cars I love Gaming and Running...

You’ve decided to purchase that fancy car you’ve always desired, but now it’s time to insure it. If you are unprepared, you may be startled at the cost of insuring one of these vehicles.

How Much More Does Insurance for a Luxury Car Cost?


On average, a premium car costs 18 per cent more to insure than a standard vehicle, all other factors being equal. 

Fortunately, there are certain things you can do to help cut your rates slightly, and it all begins with understanding what they are.

Methods to Reduce Your Insurance Costs


Even though you pay a higher insurance premium for a luxury car, there are still ways to keep those costs manageable. 

Also read: Guide to Buying your First Used Luxury Car

The majority of insurance providers assist you in lowering your insurance charges so that they are not expensive.

Several strategies for lowering your insurance prices include the following four:

Consider Purchasing Insurance on a Pay-As-You-Go Basis.

Pay-as-you-go vehicle insurance is not for everyone, but if you plan on using your luxury automobile on a limited basis, it may be worthwhile to conduct some research on this sort of insurance.

 Assume you intend to drive the car to a few auto shows each year. Pay-as-you-go auto insurance is the ideal answer in this circumstance.



There Will Be No Teen Drivers in Insurance

If you own a high-end automobile, do not let your teen drive it! Teenagers just lack the experience necessary to safely operate a premium vehicle without increasing their chance of ruining it, which no auto owner wants.

Also read: 12 Bad Driving Habits that will harm your car.

Teenagers are destined to destroy your car if they drive it for an extended period of time, so spare yourself some misery by keeping your luxury vehicle out of their reach. 

While not all minors will ruin your automobile, given the statistics, it is simply not worth the risk of allowing a juvenile to drive your luxury vehicle.

Consider Increasing the Deductible

Increased deductibles result in lower monthly payments while maintaining the same level of coverage under the policy you choose. 

Your insurance agent can walk you through the process and demonstrate how much you can save.

Even a $300 to $350 difference in your deductible can result in significant monthly savings, so this type of reduction is well worth investigating. 

Also read: Where to buy used cars online? 12 Nifty tips to buy cars online.

The insurance company argues that the higher the deductible, the lower the monthly rate should be.

Become a member of a club for owners of luxury automobiles

There are numerous types of car clubs, including those designed exclusively for owners of premium vehicles. 

Numerous insurance companies automatically provide discounts for membership in this type of club, as it demonstrates, in addition to other benefits, that you take pride in your vehicle and will take good care of it.

Questions That Are Frequently Asked (FAQs)

What factors do car insurance companies consider when calculating the premium for a luxury vehicle?

Insurance companies consider a variety of factors, including your credit score, commute time, residence, occupation, and, of course, your driving history. All of these factors have an effect on your insurance rate.

Why is it more expensive to insure a premium car?

Luxury automobiles are more expensive to insure since they are significantly more expensive to repair and replace. 

Indeed, when an insurance company is required to pay for something, the expenses are increased, and the increased cost is passed on to the client.

Also read: What are the pros and cons of buying a used luxury car?

Can I still shop around for insurance providers to see if I can obtain a better deal?

Naturally. While all of these firms will offer low rates, you’ll discover that, as with other types of insurance, the cost of insuring a luxury car varies considerably between businesses. Comparison shopping will undoubtedly help you.


I’d prefer to stay away from some of the most expensive luxury automobiles. Which premium automobiles are the most expensive to insure?

The Nissan GT-R; Porsche Panamera; some Mercedes models, including the Maybach S650, S65 AMG, S560 4MATIC, and AMG GT R; and BMW models such as the i8, M760i xDrive, some BMW Mini cooper ( Convertbles) and M6 Gran Coupe all have exorbitant insurance prices.

Final Thought

While owning a premium car will always cost you more to insure, insurance firms work hard to ensure that you have options for lowering the cost of insurance. 

Factors like installing an anti-theft device, selecting an older luxury vehicle, and deciding between full coverage and another form of coverage can all make a difference.

Why Is Insurance More Affordable for Newer Cars?

Along with luxury vehicles, there are other types of vehicles that are more expensive to insure, such as antique or classic cars, vintage automobiles, exotic automobiles, and kit cars, to name a few. 

Therefore, if you own an uncommon vehicle, you might as well face the reality that your insurance price will be a little higher.

Also Read...

Pep Luxe cars

Pep Luxe cars

PepLifestyle: Elevating Moments We are Lifestyle Bloggers with a Love for Home decor, Luxe Cars , Travel and Real estate..We are Hobbyists and Fun Lovers. We are parents to Ash, Nora & Rover and We Live in Melbourne Australia. The Peplifestyle brand is all about bringing a touch of elegance to mundane aspects of life and making significant and insignificant events appear and feel more attractive. Best Div & Manny

About Me

Welcome to Peplifestyle, a modern + chic Lifestyle Blog site. 

We at Peplifestyle think that Buying your house or buying your Luxe car or decorating your house, travelling should be enjoyable, simple and Most Importantly make you happy…

Affiliate Disclaimer: This post contains affiliate links, which means we’ll receive a commission if you purchase through our links, at no extra cost to you. Read the Disclosure here.

A Guide to Buying Your First Used Luxury Car


Follow us on FB