Luxury and Exotic Car Insurance

You need a thorough auto insurance policy if you own an exotic or luxury car. One reason for this: both types of high-end vehicles cost a lot to repair and replace.

If you get into an accident with your luxury or exotic car and you don’t have enough auto insurance or the right types of coverage, you might be hit with expensive bills to pay out of pocket. The same is true if something other than a crash, like a falling object or a natural disaster, damages or destroys your performance vehicle.

What type of car insurance coverage should you buy for an exotic or luxury car? And how much does luxury or exotic car insurance cost? We’ll tell you in this article, which explains:

• Is insurance higher for luxury cars?
• Luxury car insurance cost
• Where to get cheap luxury car insurance
• How to save money on luxury car insurance

What type of auto insurance do you need for a luxury or exotic car?

If you own a luxury car, like a BMW, Mercedes-Benz or Tesla, regular car insurance should offer as much protection as you need. Assuming you buy a full-coverage policy that includes collision and comprehensive, as well as liability coverage — and maybe gap insurance, too.

If you own an exotic car, like a Ferrari or Lamborghini, you may need specialized car insurance. In part, this is because exotic cars tend to be even more expensive to repair and replace than luxury cars. It’s also because owners of exotic cars often drive their high-value autos less than owners of more conventional vehicles.

Do luxury cars cost more to insure?

Luxury cars usually cost more to insure than standard cars if you get a full-coverage policy, based on our research. However, we also found that luxury cars often cost less to insure than standard cars if all you get is state-minimum coverage.

For example, when we gathered and compared car insurance rate quotes for a handful of luxury vehicles from several top insurance companies in Illinois, we found that state-minimum coverage for the luxury vehicles cost about the same as it did for the more conventional Honda Civic.

Look at the third column of the table above, though, and you’ll see that the full-coverage car insurance quotes we got for the luxury autos cost quite a bit more than the average quotes we received for the Civic.

According to our research, full-coverage car insurance for a 2021 Honda Civic costs $3,250 a year, on average. The full-coverage rates we gathered for our sampling of luxury and exotic cars were a lot higher than that amount. In the case of the 2021 Maserati Ghibli, the average full-coverage policy costs $9,812 a year — or $6,562 per year more than the Civic.

Remember, though, that these average rates came from Illinois. If you live in another state, both minimum- and full-coverage car insurance for a luxury or exotic vehicle might cost more or less than the amounts highlighted here. What you pay for car insurance depends on several other factors, too, including the provider you buy a policy from, your age, your gender and more.

Why do luxury cars cost more to insure?

Luxury car insurance sometimes costs more than regular car insurance because luxury cars usually cost more than regular cars. That’s even more true of exotic car insurance.

Also, exotic and luxury cars don’t just cost more to buy. They also cost more to replace if they’re totaled. And they often cost more to repair, too, thanks to parts that tend to be pricier and harder to acquire.

Another reason exotic car insurance, in particular, can cost more than standard car insurance is that not all insurance companies cover exotic cars. As such, you may need to buy coverage for an exotic car from a specialized insurer — and some of those insurers charge higher rates than more mainstream companies.

All that said, exotic and luxury cars don’t always cost more to insure than standard or conventional cars. Sometimes they cost less, which is why it’s important to compare quotes from a number of companies when shopping for exotic or luxury car insurance.

How much is luxury car insurance?

Luxury car insurance doesn’t cost much more than regular car insurance if you live in California and get state-minimum car insurance. The same is true if you call Florida home, and it’s likely true if you live in another state, too.

If you get full-coverage car insurance for your luxury or exotic car, though, you might pay more than you would if you had a more common car. You may not pay a whole lot more for luxury car insurance in this situation, though — and you could even pay less.

The luxury car insurance rates we recently gathered in Florida are a good example. The rate quotes we got from the state’s top insurance companies for a 2021 Honda Civic averaged $7,334 a year for a full-coverage policy. Although the quotes we got for a 2021 Maserati Ghibli and a 2021 Land Rover Range Rover were higher than that amount, at an average of $10,748 and $8,695, respectively, the other quotes we got for luxury cars were lower.

In particular, the full-coverage quotes we received for the 2021 Audi Q7 3.0T Quattro averaged $6,250 — $1,084 a year cheaper than our average Civic quote.

What is the best insurance for luxury cars?

It’s impossible to say what the best insurance company is for luxury cars — or exotic cars — due to all of the variables insurers consider when pricing auto policies.

To better understand this, scan the table below, which highlights average full-coverage car insurance rates gathered for several luxury or exotic cars (as well as a standard Honda Civic) from five top insurance companies in Florida.

In this example, GEICO is the best insurance company, or offers the cheapest average rates, for the Audi, BMW and Land Rover included in our survey, but State Farm is the best insurer for the Maserati.

The average rates we got from the biggest car insurance companies in Illinois, though, tell a different story. In that case, GEICO offered higher rates than most of its competitors for these same car models, while Progressive was one of the cheapest options.

All of this helps illustrate just how important it is to get quotes from at least a few insurance companies before buying a policy for your exotic or luxury vehicle.

How can I save money on luxury car insurance?

The keys to saving money on luxury car insurance, or finding cheap luxury car insurance, are to see if you qualify for discounts, drop coverage you don’t need, switch to a policy with mileage limits and shop around.

Look for discounts

Car insurance companies offer discounts for everything from safe driving to doing well in school. You can also get a discount if your car has high-end safety features, which many luxury cars do.

Drop unnecessary coverage

Although it’s recommended that you get full-coverage auto insurance for a luxury or exotic car, it isn’t required. The only required coverage is liability. So, you could save money on auto insurance by dropping the collision or comprehensive coverage from your policy, if needed. Just remember that it’s risky to have limited coverage on a luxury or exotic car.

Get a policy with mileage limits

Your luxury or exotic car may not be your daily commuter car. Or you might only drive it regularly during certain times of year. In either case, look for a policy that limits the amount of mileage you can drive. It could make your premium a lot cheaper.

Compare rates

The cost of car insurance varies depending on numerous factors like where you live, your driving record and your vehicle. To get your best rate on a luxury or exotic car insurance policy, compare quotes from several companies before settling on one.

Methodology

We compared rates from top auto insurance companies in California, Florida and Illinois for this article. These rates are based on the profile of a 30-year-old male with a clean driving record. All of the vehicles highlighted are 2021 models. Full-coverage policies include $1,000 deductibles for both comprehensive and collision coverage. Your rates may differ based on your personal factors.

References:

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