Do Luxury Cars Cost More To Insure?

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


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. 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.

High-End Cars

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 car if there’s a total loss.


If you have a large engine with a lot of horsepower, you likely face 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 expensive cars, you likely face a higher insurance rate along with the price tag.


Not all drivers need comprehensive car insurance, but some drivers do need this coverage.

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.

If you own a luxury car and need an insurance policy that is affordable, give an expert a call today. 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.

This site is a U.S. Consumer site. You can learn more about our site and privacy policy here.