Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 19, 2020

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Key takeaways...

  • Luxury car insurance costs more because luxury cars cost more to fix
  • To lower the cost of your expensive vehicle’s insurance, you first need to look at your own driving behaviors
  • An umbrella policy will take over when your liability insurance coverage is used up, to cover gaps in coverage
  • A specialty car insurance provider might be the right way to go if your vehicle is show-quality and used for recreational driving only
  • To save time and effort, you can use a quote comparison website such as this one to get a handful of quotes from different providers

Corvette, Bentley, Mercedes, Lincoln, and BMW: The names of luxury automakers are spoken with reverence, and those big, roomy, and expensive luxury cars deserve every bit of the admiration.

These vehicles include really expensive insurance costs as well, which aren’t received quite as well. However, there are a few ways to lower the cost of insurance for luxury vehicles.

Try your hand at finding low car insurance rates for your luxury vehicle by putting your ZIP code in the FREE quote tool above!

Luxury car insurance is relatively similar to car insurance for regular cars. It all depends on how you use your luxury vehicle.

Table of Contents

Luxury Cars Defined

Defining any particular group of vehicles can be a sticky subject, as everyone has differing opinions on what qualifies. A broad definition of a luxury vehicle could be any vehicle that costs more than the average car.

In today’s terms, most consider luxury vehicles to be those that cost $40,000 to $50,000 and more.

That leaves a lot of room for interpretation, as a base-model Corvette starts right around $50,000, and the fully-loaded Corvette ZR1 is well over $100,000. Some hybrid vehicles also top both the low and high range of the luxury car definition.

Usually, luxury vehicles have a lot of power and added amenities that make such cars status symbols for their owners. They say, “Yes sir, I’m loaded,” with every rev of the engine. However, what insurance companies care about the most is the risk.

Luxury vehicles are expensive to insure for a myriad of reasons.

  • One reason the coverage costs so much is that luxury vehicles are expensive to fix. They have expensive parts, top-of-the-line technology, and plush interiors. Many also need to be repaired at dealerships with expensive parts
  • Another reason why luxury vehicles are so expensive to insure is they have a great capability for creating serious injury.Their V8 and V12 engines allow them to reach high speeds. They are also generally heavier and built out of stronger materials, so they can cause a lot of damage and injury
  • Furthermore, luxury vehicles also have greater claims for comprehensive coverage
  • According to data from the Highway Loss Data Institute, luxury cars and luxury SUVs have the highest number of and most expensive losses covered by comprehensive insurance
  • Luxury vehicles have a high likelihood of being stolen, and the loss is more expensive than other vehicles
  • Luxury car owners are more likely to put in a claim for damage, as no high-end vehicle owner would stand to have a dent, scratch, or spider web crack in the windshield

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Lower Your Risk

To lower the cost of your expensive vehicle’s insurance, you first need to look at your own driving behaviors. Sure, your vehicle can go fast, but insurers interpret speeding tickets as reckless driving.

If you and your nice ride are getting speeding tickets, then expect to pay more for coverage.

The same goes for at-fault accidents. Past accidents spell future accidents in the eyes of car insurance providers, and you will have to pay more on top of the already high cost for luxury car insurance.

Similarly, major violations such as DUIs, hit-and-runs, and reckless driving convictions will catapult your risk level out into space; your insurance costs will follow suit.

To get affordable rates for your expensive vehicle, you must have a clean driving record. This can take time, but it will be well worth it. That means avoiding tickets and accidents.

Most insurance companies go back three years when looking at your driving record, though some go back five years.

Serious violations will stay on your driving record for at least seven years, though some states keep it on a driving record for ten years or more.

If your record is already full of blemishes like speeding tickets and at-fault accidents, then you might consider taking a driving safety course. Such a course could take a few points off of your license and lower your insurance costs to a small degree.

You can also lower your risk of claims from theft by making sure your vehicle has an anti-theft device.

Most luxury vehicles will come factory-equipped with such devices, so make sure that yours are in working order.

Alarms, recovery devices, and VIN etching can all help you to lower the comprehensive portion of your coverage.

Consider an Umbrella Policy

Most luxury vehicles are worth a lot of money, and their owners generally have other items and assets that amount to a sizeable net worth.

Not only does your luxury car tell others that you have money, it also tells some unscrupulous individuals that you would make a good payday in court.

Insurance protects you and your assets from such proceedings, so it is recommended that you have a lot of coverage. An umbrella policy may be the way to go to provide that additional coverage and save some money, according to the Insurance Information Institute.

An umbrella policy will take over when your liability insurance coverage is used up. It can also be used to cover the liability on your homeowner’s policy as well as your auto insurance policy.

Usually, insurers will want you to have certain limits already in place on your auto and homeowner’s insurance policies before selling you an umbrella policy.

Generally sold in increments of $1 million dollars, a $1 million umbrella policy will start at around $150 to $300 per year, according to the III. Additional increments of $1 million will cost much less.

Then, your luxury vehicle, your home, and your possessions will be safe from being lost in a lawsuit. Your insurance will cover your liability in the event of an accident or other peril.

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Use a Specialty Insurance Company

Another option that you should consider is to look for a car insurance provider that specializes in luxury vehicles. Such companies serve owners of classic cars, hot rods, and antique vehicles.

They understand the unique relationship that most drivers have with their specialty cars.

A specialty car insurance provider might be the right way to go if your vehicle is show-quality and used for recreational driving only.

There might also be restrictions, such as where you can and cannot park your luxury ride. Most specialty car owners wouldn’t dream of keeping their cars anywhere but in a secured, locked garage.

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Lower Your Usage

You may also try to lower the number of miles that you put on your high-end vehicle. Perhaps you can get a more moderate vehicle for everyday driving and save your favorite for special occasions.

Insurance providers base your risk in part on how many miles you drive; this is true for any type of vehicle. The more your drive, the more likely you are to be involved in an accident. Decreasing your overall annual mileage can result in savings.

You could also carpool with friends, family members, or co-workers, though you may enjoy the prestige of driving your car every day. See if you can combine errands and trips to lessen your mileage.

If you are retired or don’t commute to work every day, you may be able to get really discounted rates for low mileage, sometimes referred to as pay-as-you-go coverage.

Each insurer has its own designation for what constitutes low mileage, but most have a sliding scale.

For instance, the Oregon Department of Consumer & Business Services details the pay-as-you-go offerings in that state.

Drivers who operate their vehicles less than 15,000 miles a year can get discounts around 5 percent. Drivers who have really low mileage (about 2,500 miles a year) can save up to 50 percent off their coverage.

Compare Quotes

Lastly, every car owner, whether they drive a luxury vehicle or one that has seen better days, should compare quotes for coverage to save. All experts advise that comparing rates is the best way to save money.

The National Association of Insurance Commissioners lists shopping around and comparing rates as one of the top ways to save money.

You can compare rates with agents, over the phone, or over the Internet. To save time and effort, you can use a quote comparison website such as this one to get a handful of quotes from different providers.

Always get quotes for the same amount of coverage so that your quotes can be compared equally. When looking for the lowest luxury car insurance rates, try to get quotes from as many different providers as possible. Get quotes from specialty car insurance companies, major insurers, and small providers.

If you find an affordable quote, check out the background of the insurance company to make sure it is a legitimate and reputable provider, as you don’t want to trust your high-end car to just any old insurance company.

Your quest for affordable luxury car insurance can start on this page as soon as you get your ZIP code in the FREE quote tool below now!