If you're looking for more comfort and equipment in your vehicle, luxury is the way to go. It's jam-packed with more fun features to make your travels easier, but that also means it will cost more to insure. Fortunately, there are ways to save on costs while protecting your new big investment.
What We'll Cover
- Tips On What To Look For In Your Luxury Car Insurance
- The Cheapest Luxury Vehicles to Insure
- The 5 Best Car Insurance Providers For Luxury Cars
- The Takeaway: Shop Around And Compare Your Options
The key is to shop around for the best deals available and compare your options for insurance. Don't let any company talk you out of considering all your options before committing to a purchase.
To make your search a little easier, we've laid out some tips for shopping for luxury car insurance and a list of the best car insurance companies for luxury cars.
Tips On What To Look For In Your Luxury Car Insurance
With your luxury car insurance, you should expect to see at least 18% higher premiums than you see with less expensive auto purchases. However, some insurance providers can go much higher than that despite offering the same benefits.
Before shopping around, you should know that the following factors often lead to higher premiums:
- Luxury vehicles will automatically cost you more.
- How you drive — i.e., your driving record, miles driven, etc.
- Your location, age, and gender
- The type of coverage and policy you're interested in
- How much you agree to pay for your deductible
On the other hand, some common cost-saving factors often include lowering your coverage (not recommended with a luxury vehicle), combining with other insurances like home and life, working on your credit score (the better your credit score, the better your deals will be), and asking about all the discounts you may qualify for from your provider.
To ensure you're getting the best deal, keep these four tips in mind when shopping around:
- Always consider the type of luxury vehicle you drive. Providers often offer specific deals depending on the vehicle make.
- Consider the pros and cons of several providers before making your decision. Never let the pressure to get insurance make you settle with the first company you talk to.
- Be prepared for a more complex car insurance process since the risks are higher with a more expensive vehicle.
- Know what type of car insurance plan you need to protect your finances and vehicle so that you're not talked into something you don't want or need. Your options will be liability (covers medical and property damage you're responsible for), personal injury protection (covers your medical costs), and collision and comprehension (covers collision costs and other unexpected damages caused by theft or natural disasters).
The Cheapest Luxury Vehicles to Insure
Although any luxury vehicle you purchase will cost you more to insure than your average car, there are some that span on the higher end and some that will only cost you a little bit more than you're used to. If you haven't made the purchase yet and are considering the cost for average car insurance for luxury vehicles, here are some recommended options.
The Cheapest Luxury Car to Insure
If you're looking for a luxury car, you'll notice much cheaper options than an SUV's premium costs. However, of course there are luxury cars that could cost you much more than an SUV. The key to finding the best premium deal before your vehicle purchase is considering whether you prefer or need an SUV over a car or if speed is more important.
According to Autobytel, the following ten cars are the cheapest luxury cars to insure:
- 2016 Acura TLX
- 2016 BMW 3 Series
- 2016 Cadillac CTS
- 2017 Buick LaCrosse
- 2016 Toyota Avalon
- 2016 Lexus ES
- 2016 Volvo S60
- 2016 Infinity Q50
- 2017 Lincoln MKZ
- 2017 Audi A4
Keep in mind that newer models will always cost you more in premiums because they cost your insurance provider more to fix or replace.
The Cheapest Luxury SUV to Insure
SUVs are a modern-day favorite for aesthetic appeal and storage space. Depending on what you decide, you could make your insurance premiums more affordable. According to the following rankings, it seems that SUVs from the year 2016 are currently the cheapest to insure at this time. This will be especially helpful if you're also expecting large car payments at the same time.
In another luxury auto insurance review, Autobytel ranks the following luxury SUVs as the most affordable to insure:
- 2016 Jeep Wrangler
- 2016 Jeep Wrangler Unlimited
- 2016 Chevrolet Tahoe
- 2016 Chevrolet Suburban
- 2016 Toyota 4Runner
- 2016 GMC Yukon
- 2016 GMC Yukon XL
- 2016 Ford Expedition
- 2016 Toyota Sequoia
- 2016 Ford Expedition EL
Much like with luxury car insurance, you should expect to pay higher premiums the newer your luxury SUV is.
The 5 Best Car Insurance Providers For Luxury Cars
Not sure where to start? We have the top five car insurance providers for your new luxury car, ranked from the cheapest to the most expensive of the five (all will be your cheapest options compared to other providers).
Keep in mind that luxury car insurance costs and provider deals vary depending on the vehicle you purchased. While one insurance provider may not be the best insurance for typical sports cars, another provider may be more ideal if you need car insurance for a Lamborghini or other high-end luxury car. Here are some options to consider.
USAA, also known as the United Services Automobile Association, is a lender and insurance company for military members and their families. This insurance is often the most affordable for luxury vehicles.
More specifically, they do have the cheapest premiums for:
|The average rate for an Audi Q5 is $1,335
|BMW 3 Series
|$1,500 is the average premium for a BMW 3 Series
|The average rate is $1,215 for a BMW X3
|For a BMW X5 the rate is around $1,484
|The average premium for an Infinity Q50 is around $1,336
If you or your spouse is a military member, USAA will likely be your best option.
- Accident forgiveness
- Multiple vehicle discounts
- Rewards for safe driving
- You can bundle auto loans with banking, mortgage loans, health and life insurance, and more
- Only military families qualify
If you're not a military member, Nationwide may be your next best option, depending on your luxury vehicle.
Some of their best premiums are for vehicles like:
|For a BMW X5 the rate is around $1,620
|The premium for an Infinity Q50 is around $1,501
|The Average rate for a Lexus ES is $1,406
|$1,356 is the average rate for a Lexus RX
|Mercedes-Benz C-Class ($1,732)
|The average premium is $1,732 for a Mercedes-Benz C-Class
- Smart Ride discount (instant 10% off, plus up to 40%)
- Smart Miles discounts (drive less, pay less)
- Home and auto bundles
- Accident forgiveness
- JD Power studies report low customer satisfaction
GEICO is another popular choice for auto insurance, particularly when it comes to convenience of use on their apps and decent premiums for your luxury vehicle.
You can expect average premiums for the following luxury vehicles in particular:
- $2,041 for the Mercedes-Benz CLS-Class,
- $2,220 for the Mercedes-Benz C-Class,
- $1,631 for the Lexus RX, and
- $1,725 for the Audi Q5.
- Save more money when you bundle up with home or renters insurance
- Report a 97% customer satisfaction rating
- Has a #1 rated insurance app
- It doesn't offer Guaranteed Asset Protection (GAP)
- It doesn't offer rideshare insurance
Liberty mutual is popular for its many different policies that are meant to complement a variety of drivers. This often leads to finding the best policy that suits your needs and preferences when covering your luxury vehicle.
Some premium averages you can expect from this provider include about:
- $2,097 for a BMW 3 Series,
- $2,021 for a BMW X5,
- $1,911 for a Lexus ES, and
- about $2,170 for a Mercedes-Benz CLS-Class.
- A variety of policies and add-on coverage options to choose from
- Available throughout the whole nation
- Has great BBB ratings (A+)
- Premiums are often higher
Progressive is a well-known and popular provider of many different types of insurance. For auto insurance, in particular, clients often prefer this company for their many bundles and Snapshot program (rates are based on how you drive).
Some premium averages you can expect from Progressive include on average $1,365 for the Audi Q5 (comparable to USAA's $1,335), $1,436 for the BMW X3 (comparable to Nationwide's $1,433), and $1,995 for the Infiniti Q50 (second best to USAA's shocking $1,366).
- Second best to USAA for some luxury vehicles
- Has rideshare coverage
- Combine with home, renters, or condo insurance
- Customer support available at ALL times
- It doesn't have ideal customer satisfaction ratings
The Takeaway: Shop Around And Compare Your Options
Deciding which car insurance is the best for you will depend on you and your needs, what vehicle you're driving, and whether you qualify for some of the company's best deals. It also depends on your preferences when weighing all the pros and cons of your options. Although luxury car insurance costs can be high, there is no better way to protect your big investment. Be sure to take your time and shop around to make sure you're getting the best deal available for you.
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