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Laura Berry

Former Insurance Agent

Former Insurance Agent

Joshua Adamson

Joshua is a copywriter at Obrella who for more than 10 years has been creating content about insurance, health care, and more. He helps companies explain complex insurance subjects in simple ways so that customers can make smart buying decisions. He spends way too much time binge-watching Netflix, loves the outdoors and has a cat who tolerates him.

UPDATED: Jul 19, 2021

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Do Luxury Cars Cost More To Insure?

While factors like age, driving record, and credit score influence your auto insurance rate, another important part of what goes into determining your cost of insurance is the type of vehicle you drive. If you're looking at insuring expensive cars, you likely face a higher insurance rate for your auto policy along with the price tag.

Are larger cars more expensive to insure?

The size of your car matters to your insurance company. If your car is small and offers higher maneuverability, an insurance provider sees that as a risk to insure because you may drive that car more recklessly. Sports cars are notoriously expensive when it comes to auto insurance.

Statistics show that younger drivers tend to choose smaller, sportier cars and get in more accidents, thus raising the price of the insurance premium.

Larger cars can also lead to higher premiums because of the greater amount of damage they can inflict on other cars in an accident. A mid-sized car, such as a sedan or mid-sized SUV, is usually the least expensive to insure.

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Are high-end cars more expensive to insure?

The higher the value, or MSRP, of your car, the more expensive it is to insure. This is due to higher costs of repairs, replacement parts, particularly on foreign models, and the cost of replacing the expensive vehicle if there’s a total loss.

Does it matter what kind of motor you have?

Yes, engine size matters. Vehicles with large and powerful engines will come with a higher insurance premium. The more powerful your car is, the more likely you are to drive at higher speeds, which presents a higher risk. Even certain varieties of the same car model cost different amounts to insure due to engine sizes.

If you’re looking at insuring luxury vehicles, you likely face a higher than average premium for your insurance coverage along with the high sticker price.

Is your car more likely to be stolen?

Comprehensive insurance protects you from car theft (as well as damage from inclement weather, natural disaster, and other non-collision events). Not all drivers need comprehensive coverage, but some drivers definitely do.

Exotic cars are not only more likely to be stolen for their rarity, but their parts may be more in demand or harder to find, which could also lead to theft. The higher the theft rate, the higher your car insurance will be. In fact, According to the Insurance Information Institute, about one-third of an average car insurance premium covers potential theft claims.

Your luxury car insurance rates don’t have to break the bank. If you own a luxury car and need an insurance policy that is affordable, give an expert a call today. Auto insurance companies vary in what they charge and what they provide. Licensed insurance agents have years of experience finding the right policy for each and every customer, and can help you find the policy that provides you with the coverage that you need without being too expensive.

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