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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Owning a luxury car comes with a sense of pride, but it also raises your car insurance bill. On average, luxury car owners pay around $157 per month for car insurance coverage, compared to the $135 the average driver pays. The higher price tag is partly because high-end vehicles come with more expensive repair and replacement costs — mostly due to their pricy parts and complex features.
Travelers and Nationwide offer some of the lowest premiums, but knowing how to scout companies and compare policies can help you get the best deal on luxury vehicle car insurance.
Comprehensive and collision coverage, along with OEM parts coverage, are must-haves for complete protection of your luxury car.
The advanced technology in luxury cars drives up repair costs, which increases your insurance rates.
Look for agreed value coverage to get the full value of your car without depreciation if it’s completely damaged.
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We already mentioned that luxury cars come with higher insurance costs, but the difference in premiums between brands can be as dramatic as the cars themselves. Still, just because you own a high-end ride doesn’t mean you have to settle for sky-high rates.
Check out the table below to see how different luxury brands stack up when it comes to average monthly insurance premiums, according to Compare.com data.
Volvo offers the lowest average premium amongst luxury automakers, at $125 per month. This is likely due to its strong safety reputation.
On the other end of the spectrum, Tesla models average $188 per month, thanks to the brand’s advanced technology and higher repair costs.
Your shopping journey doesn’t end when you pick the right luxury car. Selecting the right insurer can make a huge difference in your monthly car insurance bill. That’s because rates can vary considerably from one company to the next, even for the same car.
The table below calls out the five cheapest insurance companies for luxury vehicle owners, based on data from Compare.com. These insurers offer competitive rates and perform well in customer satisfaction.
Company ▲▼ | Compare.com Rating ▲▼ | Average Monthly Premium ▲▼ | Average Annual Savings* ▲▼ |
|---|---|---|---|
| Travelers | 4.57/5 | $88 | $828 |
| Nationwide | 4.70/5 | $95 | $744 |
| Farmers | 4.53/5 | $98 | $708 |
| Safeco | 4.59/5 | $102 | $660 |
| Direct Auto | 3.76/5 | $103 | $648 |
Our research shows that Travelers offers the cheapest average rate for luxury car insurance, at $88 per month. This adds up to an impressive savings of $828 per year.
But don’t just take our word for it — make sure to compare quotes from multiple companies before settling on a policy. This way, you can be sure you’re getting the best rate for your specific car and situation.
Compare personalized quotes and find the right policy for you in minutes
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If you’re driving a luxury car, you’re paying for more than a sleek ride. You’re likely also paying more for auto coverage. Insurers face unique challenges and costs and charge more to align premiums with a higher risk of covering these vehicles.
The increased value can drive up rates, but it’s about more than the car’s sticker price. Below, we break down the most common reasons behind a higher insurance bill.
Your car’s value plays a huge role in your insurance costs. Sure, you get an upgraded driving experience, but insurers know that if you total your luxury car, it won’t be a small repair bill when you go to file a claim.
Luxury autos are expensive to replace or repair, and the higher the payout risk, the higher the premium. Think of it like insuring a mansion instead of a bungalow — the more there is to lose, the more you’ll pay to protect it.
Luxury cars don’t just look good — they’re packed with high-end tech, from suspension and drivetrain components to advanced driver-assist systems and self-parking features. These add-ons make repairs difficult and expensive, increasing the repair costs.
A simple fender bender that damages these systems could easily cost thousands more than the average car. For example, Tesla collision repair costs an average of $1,350 more than a non-electric vehicle, according to Automotive News.
You can’t simply roll into any repair shop when something goes wrong with your luxury car. High-end vehicles often require manufacturer-certified technicians with unique training and expertise.
And they can’t always use parts from your average local garage or auto parts store, either — some fixes require specialized parts, further increasing the overall cost.
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Insuring a Porsche or Tesla isn’t the same as insuring a Toyota RAV-4, for example. You need to look beyond price to find an insurer that understands the importance of specialized repairs, agreed value coverage, and high liability limits.
Although no one company is the best insurer for everyone, we’ve handpicked these top auto insurance companies based on coverage options, customer satisfaction scores, and average premiums.
Average premium: $95 per month
Compare.com Rating: 4.7 out of 5
Nationwide offers some of the best features for luxury cars, like gap insurance and new car replacement coverage. Plus, if you want more, Nationwide Private Client gives you original equipment manufacturer (OEM) parts, liability protection up to $25 million, and agreed value coverage. It’s the sweet spot between price and premier-level coverage.
Average premium: Not available
Compare.com Rating: Not rated
Private Client Select offers next-level coverage for exotic vehicles. This company specializes in agreed value coverage, which means no depreciation headaches if you wreck your Lamborghini or Ferrari, for example.
It also has worldwide liability coverage with limits up to $100 million, OEM parts coverage, and rental car reimbursement up to $12,500. Private Client Select is exotic car insurance that offers protection as exclusive as the car it covers.
Average premium: $98 per month
Compare.com Rating: 4.53 out of 5
Farmers has stand-out options for even the most die-hard sports car owners. It offers OEM parts coverage, so you can rest easy that your car will get the best parts after an accident. The company also offers customized equipment coverage to protect any modifications you’ve made to your vehicle.
You can also qualify for safe driver discounts, which could reduce the typically high insurance costs sports car owners face by a few dollars.
Compare quotes and ensure you get the best coverage for your needs
When you own a sophisticated vehicle, the stakes are higher — repairs cost more, replacement parts aren’t as easy to find, and you probably didn’t buy the car to settle for second-rate protection. Here are a few common coverage types to consider for your luxury car.
Collision: Covers damages to your car from accidents, whether you hit another vehicle or a pothole.
Comprehensive: Protects your car from non-collision incidents like theft, fire, vandalism, and natural disasters.
Agreed value: Locks in a specific payout amount that you and the insurer agree on rather than relying on its depreciated actual cash value (ACV).
New car replacement: Replaces your vehicle with the same make and model if you wreck your new luxury car.
OEM parts: Ensures the repair shop uses only parts from the original manufacturer.
Gap insurance: Covers the difference between your car’s market value and the remaining balance on your loan or lease.
Uninsured/underinsured motorist: Protects you if you get in an accident with a driver who has no insurance or not enough to cover the damages to your high-value car.
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Since your luxury car deserves special protection, it’s important to take advantage of strategies that make sense for high-end vehicles. Here are a few tips to cut your car insurance costs.
Install advanced security systems. Adding a stolen-vehicle recovery system could qualify you for premium discounts.
Consider usage-based insurance. If your luxury car isn’t your daily driver, go with a usage-based car insurance policy that rewards low mileage or limited driving.
Take advantage of loyalty programs. Bundling multiple vehicles or homes with one insurer can open up loyalty discounts to lower your rates.
Pay in full or use automatic payments. Some insurers offer discounts if you pay your annual premium up front or set up automatic payment methods.
Join a car club. Some car clubs have partnerships with insurers to give exclusive discounts on premiums.
Compare multiple quotes side-by-side in minutes
When you’re driving a car that can turn heads, the standard questions don’t apply. Here are answers to questions luxury car owners actually ask when shopping for car insurance.
It depends, but luxury or high-performance vehicles require coverage that goes beyond the basics. Look for comprehensive and collision coverage, along with extras like agreed value protection (so you get paid the true worth of your car if it’s wrecked) and OEM parts coverage to keep your ride factory-perfect.
Yes. Insuring a high-end vehicle costs more because of the hefty repair bills and theft risks. Our data shows that luxury brands cost around 16% more to insure than the average vehicle. Look into advanced anti-theft systems, usage-based insurance, loyalty programs, and car clubs for opportunities to save on premiums.
Insurance for a Bugatti can range from around $4,000 to $5,000 per month, according to a recent report from Trusted Choice. Still, costs can vary depending on the model, location, and driver profile. The higher rates reflect the risks of Bugattis being rare, exotic, and incredibly expensive to repair, and many insurers won’t offer coverage for such an expensive vehicle.
The top luxury car insurance company depends on what you drive and what kind of coverage you want. Nationwide, Private Client Select, and Farmers are solid picks for high-end cars. Each offers customizable policies and can have features like new car replacement, agreed value coverage, and original equipment manufacturer (OEM) parts replacement. But the only way to find the best coverage for you is to compare personalized quotes from as many insurers as possible.
Data Methodology:
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers' vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Rating Methodology:
Compare.com’s mission is to help our readers make more informed decisions about their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:
Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best Financial Strength rating, BBB accreditation, and other related factors.
Sources:
Insurance Institute for Highway Safety, “2024 Top Safety Picks,” accessed September 19, 2024.
Kelley Blue Book, “Study: Apart from Tesla, EVs Repairs Not Much More Costly,” accessed September 19, 2024.
Automotive News, “Tesla crash repairs costly, but other EVs near parity with gas vehicles,” accessed September 19, 2024.
Insurance Information Institute, “Does my auto insurance cover damage caused by potholes?,” accessed September 19, 2024.
Insurance Institute for Highway Safety, “Dodge muscle cars once again top HLDI’s list of most-stolen vehicles,” accessed September 19, 2024.
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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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