Best Cheap Rates for Luxury & Exotic Car Insurance
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State Farm, Travelers and Progressive are the best car insurance companies for luxury cars. Exotic cars usually need a specialty insurance company like Hagerty, Grundy Insurance or PURE Insurance.
Luxury car insurance covers vehicles that are high in cost and performance and made by a luxury manufacturer, such as BMW, Mercedes-Benz or Lexus. Coverage options for luxury cars are similar to those for regular vehicles, and we recommend getting a full coverage policy that gives you the most protection for your car.
Table of contents
What's the best insurance company for luxury cars?
State Farm is the best overall insurance company for luxury cars because of its cheap prices and high ratings.
Travelers and Progressive can also be a good deal depending on the make and model of your car.
Luxury car insurance
Company | Monthly cost | |
|---|---|---|
| State Farm | $187 |
| Travelers | $219 |
| Progressive | $232 |
| American Family | $240 |
| Geico | $445 |
*USAA is only available to current and former military members and their families.
Find Cheap Auto Insurance Quotes in Your Area
Best overall: State Farm
Best rates for Acura, Audi, BMW, Cadillac, Genesis and Mercedes.
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Editor rating
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Full coverage
$187/mo ?
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J.D. Power
882 ? -
AM Best
A++ ?
Travelers
Best rates for Alfa Romeo and Volvo.
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Editor rating
-
Full coverage
$219/mo ?
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J.D. Power
854 ? -
AM Best
A++ ?
Progressive
Best rates for Infiniti, Jaguar, Lexus and Porsche.
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Editor rating
-
Full coverage
$232/mo ?
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J.D. Power
861 ? -
AM Best
A+ ?
American Family
Best if you want to avoid aftermarket parts.
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Editor rating
-
Full coverage
$240/mo ?
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J.D. Power
874 ? -
AM Best
A ?
What type of coverage do you need for a luxury car?
Owners of luxury vehicles should have the following coverages:
Liability insurance
Liability insurance covers the medical expenses and property damage of other parties in the event of a car accident if you're at fault.
The general rule for liability insurance is to buy as much coverage as you can reasonably afford, especially if you have a lot of assets. Damage that you cause, beyond what the plan covers, could become your responsibility. Strong liability coverage can help limit your financial risk and potentially help protect you from lawsuits.
Sometimes, insurers have a maximum amount of liability insurance in a particular state. For example, Allstate's maximum liability limits in New York are $250,000 per person and $500,000 per accident for bodily injury (BI) liability, and $100,000 per accident for property damage (PD) liability.
For extra liability coverage, consider buying an umbrella policy, which is available in $1,000,000 increments and kicks in after your BI and PD limits are met.
Collision and comprehensive insurance
Full collision and comprehensive insurance cover damage to your own car and are an essential part of insuring a high-value car. These types of insurance are expensive for luxury cars. But they ensure that repairs to your vehicle are covered, regardless of fault.
- Collision insurance covers your car's damage if you hit another vehicle or structure.
- Comprehensive insurance covers your car's damage caused outside of accidents, such as from theft, falling objects or weather.
If you prefer having your vehicle repaired with original equipment manufacturer (OEM) parts, look for an insurer that includes OEM coverage in the policy or allows you to add on OEM coverage. This increases your monthly bill. However, your insurer will pay for original parts whenever possible, even when cheaper aftermarket parts are available.
Personal injury protection
Personal injury protection (PIP) covers you and your passengers for medical bills in the event of an accident. It can be important coverage for luxury car owners because of the risk of injuries with high-powered vehicles.
With PIP, your insurer will pay regardless of who is at fault. That means claims are typically processed faster and with fewer disputes.
If PIP is not offered by your insurer, or isn't available in your state, then consider medical payments coverage. Medical payments coverage functions like PIP but doesn't pay out for lost wages or similar losses.
Gap and new car replacement coverage
If you're leasing or financing a luxury vehicle, the terms usually require that you have gap insurance, which covers you if you owe more on the vehicle than your insurance would pay to replace it after an accident.
The value of a car drops quickly when you drive it off the lot. So if your car is totaled, gap insurance will cover any difference between the car's actual cash value and how much you owe on the car. This helps you avoid owing thousands of dollars on a car that you no longer have.
For those who are buying a new luxury vehicle with cash outright, consider new car replacement coverage. This covers the cost of buying a replacement car — of the same make and model. It's usually only available if you get comprehensive and collision coverage.
How much does luxury car insurance cost?
Car insurance for luxury and performance cars costs an average of $397 per month ($4,761 per year) for full coverage. That's 63% more than insurance for an economy car.
The rule of thumb is that when the car costs more, the cost of insurance also increases. This is because insurance companies consider the cost of car repairs or replacement when setting their prices.
For example, it costs an average of $360 per month to insure a Cadillac CT4 that has a value of $34,890. And it costs an average of $434 per month to insure a Porsche 718 Boxster that has a value of $63,950.
Full coverage rates for luxury cars by make and model
Car | MSRP | Monthly cost of full coverage |
|---|---|---|
| Acura ILX | $28,395 | $295 |
| Cadillac CT4 | $34,890 | $360 |
| Mercedes A220 | $35,950 | $379 |
| BMW 230i | $36,695 | $370 |
| Genesis G70 | $38,870 | $385 |
Many luxury cars have extra safety features such as driver assistance or automatic braking, which may help reduce how much more you'll pay to insure a luxury car versus an economy car.
How to get the cheapest luxury car insurance rates
When shopping for luxury car insurance, getting several personalized quotes helps you ensure that you're getting the best deal based on your car, driving history, location, age and other pricing factors.
It's easy to get online quotes from major insurers — State Farm, Geico, Allstate, etc. — for common luxury vehicles. Companies can charge different prices for the same amount of coverage, so comparing quotes is necessary.
Many insurance companies offer discounts for having multiple insurance policies with the same company.
For example, you can bundle together your home and auto insurance to get a discount. Or if your household has multiple vehicles, you can bundle them with your luxury car insurance to get a multivehicle discount.
When bundling, avoid adding high-risk drivers — such as young drivers — to your plan because they'll cause dramatic increases to your rates.
If you only use your car on limited occasions, such as a convertible you only drive in the summer, you may be able to cut your insurance costs based on your usage.
For example, while a car is in storage, you may be able to pause your collision coverage because you won't need protection from car accidents. However, this is only recommended for those who have their own garage. If you use public storage, keep all of your coverage so you stay protected if there's a hit-and-run.
Also consider whether you want a higher-deductible plan. This lowers insurance costs, which could be worth it even though you'll have to pay more when you file a claim for repairs.
Auto insurance companies usually give discounts for safety features that are standard on luxury vehicles such as anti-lock brakes, daytime running lights, air bags and traction control systems.
You can also get discounts for anti-theft features like car alarms, secure parking, electronic tracking devices and vehicle identification number (VIN) window etching.
Exotic car insurance
Exotic cars make up a subsection of very rare and expensive luxury cars. Examples include Ferraris, Lamborghinis and McLarens.
A new Maserati MC20 that's worth $215,995 costs nearly $8,000 per year to insure.
Exotic vehicles represent a massive risk for insurers due to their huge cost, expensive repairs and the elevated crash risk that comes with very high horsepower.
That's why insurance can be very expensive.
If you own an exotic car, consider a collector car or specialty auto insurance policy.
Sometimes called prestige car insurance policies, these policies base their coverage on an agreed value for your vehicle. This means that you and your insurer decide a total payout price to replace your vehicle. Because many exotic cars increase in value over time, setting coverage at an agreed value eliminates disputes if your insurer has a low valuation for your exotic car.
To qualify for these policies, you might need to meet the following criteria:
- Your vehicle needs to be of a certain value or age (such as above $100,000 or 25 years old)
- Your vehicle needs to be in good condition
- Your vehicle cannot be your regular-use car
- You need to store your vehicle in a locked garage when not in use
- You need to be over 25 years old and have a good driving record
The insurers that offer these policies are often more concerned about serious tickets like DUIs, reckless driving and major speeding when evaluating your driving record. You may still be eligible for these policies if you only have a few minor tickets on your record.
Best car insurance for exotic cars
The top companies that offer specialty auto policies for exotic cars include Hagerty, Grundy Insurance and PURE Insurance.
Best overall: Hagerty
Consider if you want high-quality coverage and a variety of policy options.
Pros and cons
Grundy Insurance
Consider if you want personalized policies and no mileage restrictions.
Pros and cons
PURE Insurance
Consider if you want coverage tailored to high-net-worth households.
Pros and cons
Methodology
ValuePenguin gathered auto insurance quotes from eight insurance companies for 12 luxury cars from 2022. Rates are based on a full coverage policy for a 30-year-old man who has good credit and a clean driving history. Averages are based on all ZIP codes in Illinois.
Coverage | Limit |
|---|---|
| Bodily injury (BI) liability | $50,000 per person/$100,000 per accident |
| Property damage (PD) liability | $25,000 per accident |
| Uninsured/underinsured motorist BI | $50,000 per person/$100,000 per accident |
| Comprehensive and collision | $500 deductible |
| Personal injury protection | Minimum when required by state |
Insurance rate data is from Quadrant Information Services and is publicly sourced from insurer filings. Rates are for comparative purposes only, and how much you pay may be different.
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.