Is it more expensive to insure a luxury car?
Asked by: Arielle Spinka PhD | Last update: July 6, 2025Score: 4.1/5 (12 votes)
Is insurance more expensive for a luxury car?
Insurance for luxury cars almost always costs more than the national average cost of a policy. This is largely due to the higher repair costs.
What are the disadvantages of buying a luxury car?
Luxury cars are built with quality in mind. That's part of their appeal. But quality comes at a price. While high-class components used in luxury cars usually last longer than mass-produced parts used in economy models, the cost of repair or replacement is often significantly higher when they finally do break down.
What car brands are cheapest to insure?
The Honda CR-V, Mazda CX-5, Jeep Wrangler and Subaru Outback are the cheapest cars to insure. All three have full coverage rates under $250 per month, on average.
Is Lexus considered a luxury car for insurance?
Price of parts: Because Lexus is considered a luxury brand, its models may have high-end parts that can increase the cost of repairs and drive up the cost of insurance.
How Much Does It Cost To Insure Your Luxury Vehicle
What price is considered a luxury car?
However, there is no price threshold to qualify a vehicle as luxury. Even within luxury vehicles, there is a huge range of prices, often depending on the make, model, features, and amenities available.
What age is car insurance most expensive?
18-year-old drivers on their own policy pay the highest car insurance premiums out of the age groups Bankrate analyzed. The most significant difference in premiums by gender occurs at age 18. On average, 18-year-old males cost 9 percent less to insure than their female counterparts.
Are Mercedes expensive to insure?
The average cost of car insurance for Mercedes-Benz models is about $3,288 per year. This is $393 worse than other luxury brands.
Is it expensive to maintain a luxury car?
Maintenance Costs Can be Higher
Luxury cars need regular maintenance like any other car, including oil changes, tire rotations, and brake pad replacements. However, these services can cost more for luxury cars, as they may require specialized parts or a more skilled mechanic.
What happens to luxury cars that don't sell?
Unsold vehicles stay in the dealer's lot until someone buys them. Unsold new cars may be sold at a discounted price or used as service loan vehicles.
What counts as a luxury car?
Luxury car makers use high-quality parts, including expensive interior materials. Driving pleasure and cabin comfort are the key ingredients. The luxury car specs will show that all the car's details are high-end, not just a feature or two.
What is the most expensive SUV to insure?
The Ford Explorer, the most expensive SUV included in our survey, is also the most costly SUV to insure. In addition to its 2020 list price of $32,765, average insurance costs for a Ford Explorer total about $1,589 annually. The most budget-friendly insurance company for a Ford Explorer is Nationwide, at $1,081 a year.
Do luxury cars lose value faster?
Cars can lose a large portion of their value the moment you drive them off the lot. High-end luxury cars tend to depreciate the most. Factors that determine the rate of depreciation include mileage, quality, design, and consumer whim.
What is the cheapest Mercedes car to insure?
Mercedes-Benz insurance cost by model
The cheapest Mercedes to insure is the GLA 250. The average cost to insure a new Mercedes GLA 250 is $3,153 per year for a 30-year-old man with a clean driving history. The most expensive Mercedes model to insure is the AMG GT S, at $6,818 per year.
Does credit score affect car insurance?
How credit-based insurance scores work. Most U.S. insurance companies use credit-based insurance scores along with your driving history, claims history and many other factors to establish eligibility for payment plans and to help determine insurance rates. Again, except in California, Hawaii, and Massachusetts.
Which gender pays more for car insurance?
On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger. When they are older, women start to pay slightly higher rates.
At what age do car insurance rates drop?
The biggest drop is typically from 18 to 19, when the average rate drops by around $1,595. Car insurance typically drops as you grow older, when you drive safely for three to five years following an accident or citation, and when you switch to a cheaper company.
Is BMW considered a luxury car?
While other brands like Mercedes-Benz embraced a single-minded focus on comfort or ride quality, BMW established itself in the luxury market by creating vehicles that seamlessly combine the best of performance with practical, everyday drivability.
Which car brand is most luxury?
Unsurprisingly, Rolls-Royce dominates the luxury car market, with two of its models ranking among the world's most expensive. The Rolls-Royce La Rose Noire Droptail is valued at an astonishing $30 million (approximately ₹251.24 crore), while the Rolls-Royce Boat Tail is priced at around ₹234.04 crore.
Do you pay more insurance for luxury cars?
Because car insurance is designed to protect your vehicle, the high price of a luxury car inevitably leads to higher insurance costs. For the models included in our survey, the average annual insurance premium for a luxury car was about 18% higher than the cost of insuring a moderately priced sedan.
Is Lexus just luxury Toyota?
The Lexus brand is the luxury division of the Toyota Motor Corporation, a Japanese automaker. Lexus vehicles were initially developed for the American market and debuted there to the enthusiasm of drivers before eventually being sold in other markets around the world.