Luxury Car Insurance: Compare Rates by Model

Compare costs by carrier to find the cheapest car insurance for your luxury vehicle.


What's the best car insurance for luxury vehicles?


Buying a luxury car isn’t like buying a Kia Forte. Your new ride is more than an A-to-B method of transportation: it's a finely tuned driving machine that lets you enjoy the journey. As such, it’s worth protecting to the fullest. Let’s explore the best car insurance companies for luxury vehicles, as well as some additional insurance options worth considering for a high-performance vehicle.


Insuring a luxury vehicle
  1. Affordable insurance for luxury cars
  2. Luxury vs. regular vehicle insurance: policy options to consider
  3. How to save on luxury car insurance
  4. Additional resources




Cheapest luxury car insurance by model and company


Luxury car insurance is often more expensive than insurance for a standard vehicle. 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 34% higher than the cost of insuring a moderately priced sedan. We broke down average insurance costs for popular luxury car models, generating average quotes from individual companies using a profile outlined here.





Audi Q5


At a list price of $40,900, the Audi Q5 is a little more expensive than the other vehicles we surveyed and its average insurance costs reflect that, at an average premium of around $1,860. If you're considering this vehicle, your cheapest insurance option is Nationwide, offering an annual premium of $1,698 per year.

Annual Audi Q5 insurance rates

CompanyPremium
Allstate$1,931
Geico$1,836
Farmers$1,773
Liberty Mutual$1,860
Nationwide$1,698
Progressive$1,884
State Farm$1,927
USAA$1,967



BMW 3 Series


BMW is among the most established luxury vehicle brands, and the 3 Series is a classic. If you're looking to insure this vehicle, you should again begin your search with Nationwide and potentially Farmers. Average insurance rates for a 3 Series are $164.45 per month on top of a list price of $33,450.

Annual BMW 3 Series insurance rates

CompanyPremium
Allstate$2,026
Geico$2,023
Farmers$1,803
Liberty Mutual$2,014
Nationwide$1,783
Progressive$1,975
State Farm$2,126
USAA$2,038



BMW X3


The first of two BMW SUVs we analyzed, the X3 is the cheaper of the two to insure. While the X3's price is near the middle of the pack for high-end SUVs, the model carries the cheapest premium of any of the luxury vehicles surveyed. On average, expect a monthly premium of $143 with a list price of $40,050. As with other luxury vehicles, Nationwide and Farmers offer the cheapest insurance rates for the BMW X3.

Average annual BMW X3 insurance costs

CompanyPremium
Allstate$1,781
Geico$1,692
Farmers$1,577
Liberty Mutual$1,705
Nationwide$1,624
Progressive$1,753
State Farm$1,792
USAA$1,798



BMW X5


The BMW X5 is pricier both to buy and to insure than its cousin the X3. The X5 carries a relatively steep list price ($56,000), along with an average annual insurance cost of nearly $2,000. Choosing Nationwide or Farmers can help you can lower this average to $1,700-1,800 a year.

Annual BMW X5 insurance rates

CompanyPremium
Allstate$2,001
Geico$1,968
Farmers$1,786
Liberty Mutual$1,964
Nationwide$1,761
Progressive$1,944
State Farm$2,091
USAA$2,091



Infiniti Q50


Although the Infiniti Q50 is on the low end of the luxury spectrum — with a list price of $33,950 — it's a pricy car to insure. The average annual insurance cost for an Infiniti Q50 runs $2,027, or approximately $170 per month. If you want the most affordable policy, consider Nationwide or Farmers, each offering annual rates closer to $1,800.

Annual Infiniti Q50 insurance pricing

CompanyPremium
Allstate$2,099
Geico$2,079
Farmers$1,881
Liberty Mutual$2,056
Nationwide$1,837
Progressive$2,063
State Farm$2,195
USAA$2,087



Lexus ES


Although the Lexus ES sells for less than the other Lexus selected for our survey (the Lexus RX), the ES costs a hundred dollars more per year to insure. With a listed value of $38,900 and an average annual insurance premium of $1,960, this luxury sedan costs more than per $160 per month to insure. USAA and State Farm tend to be on the higher end for our user profile, while Nationwide and Farmers remain the most affordable car insurance options for the ES.

Annual Lexus ES insurance costs

CompanyPremium
Allstate$1,265
Geico$1,307
Farmers$1,248
Liberty Mutual$1,335
Nationwide$1,287
Progressive$1,339
State Farm$1,430
USAA$1,347



Lexus RX


This luxury car follows the relatively common trend of sedans being more expensive to insure than SUVs. While the Lexus RX has a moderately high list price of $43,220, its average premium is on the lower end of surveyed luxury vehicles. On average, insuring a Lexus RX costs $1,852 per year, or $926 for a standard 6-month policy.

Annual Lexus RX insurance rates

CompanyPremium
Allstate$1,930
Geico$1,838
Farmers$1,714
Liberty Mutual$1,850
Nationwide$1,713
Progressive$1,870
State Farm$1,937
USAA$1,964



Mercedes-Benz C-Class


The second most expensive vehicle in our survey group to insure, the Mercedes-Benz C-Class, will set you back nearly $40,000 to buy. Monthly premiums for the C-Class are on the pricier side, at nearly $180 per month. Nationwide, GEICO, and Farmers are good places to start when price-shopping for Mercedes-Benz C-Class insurance.

Annual Mercedes-Benz C-Class insurance premiums

CompanyPremium
Allstate$2,159
Geico$2,117
Farmers$1,948
Liberty Mutual$2,078
Nationwide$1,990
Progressive$2,126
State Farm$2,246
USAA$2,240



Mercedes-Benz CLS-Class


Last but certainly not most affordable is the Mercedes-Benz CLC Class. With the highest list price of surveyed luxury cars — nearly $70,000 — this vehicle also has the group's highest overall premium. On average, this vehicle costs $3,545 per year to insure, or about $300 a month. Liberty Mutual and Nationwide offer the cheapest car insurance for a Mercedes-Benz CLS-Class.

Annual Mercedes-Benz CLS-Class insurance rates

CompanyPremium
Allstate$3,633
Geico$3,569
Farmers$3,532
Liberty Mutual$3,385
Nationwide$3,379
Progressive$3,534
State Farm$3,744
USAA$3,580



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Additional luxury car insurance options


Because your luxury car may come with extra features, be sure to choose an insurance policy that covers your vehicle completely. Here are some common car insurance considerations specific to luxury vehicles.


Collision and comprehensive insurance

While your policy probably includes this, it's important to remember that with any vehicle worth more than $4,000, you should carry collision and comprehensive coverage at a minimum. Although not required by law, these coverages work together to provide physical protection through most covered losses.



Gap insurance

If you’re leasing or financing your vehicle, this is a solid option. This coverage handles the difference between what you owe for the lease or loan versus what your insurance company will pay out in the event your car is totaled. Typically, your insurance policy will pay out the value of your vehicle minus depreciation, but your loan will not factor this in. This coverage negates the possibility of going underwater on a loan.



Customized parts and equipment

This coverage protects customized parts, equipment, devices, accessories, or any non-standard add-ons you might have. While a standard policy might offer basic coverage for additional features, this protection may be relatively limited. If you have custom features on your vehicle, you might want to consider this policy. While custom coverage may vary among luxury car insurance companies, typical features include:

  • Stereos
  • Television equipment
  • Wi-Fi access
  • Navigation systems
  • Special carpeting or insulation


Uninsured motorist property damage

Depending on your state and policy, you might already have uninsured motorist property damage coverage. If this isn't included in your policy, you should consider adding it. This coverage provides physical protection to your vehicle if the at-fault driver does not have insurance — or does not have enough insurance — to cover the damage to your vehicle. As a luxury vehicle is worth more than a standard car, there's a chance you could exhaust the other party’s coverage before your vehicle is repaired.





How else can you save?


The price of luxury vehicles not only makes them expensive to buy, but also to insure. Let’s break down some simple and easy steps that could save you a lot of money on luxury car insurance.


Be smart with your claims

While your instinct may be to use your insurance to protect your high-end investment, consider the long-term financial consequences of filing a claim. Most car insurance companies will charge, i.e. rate, you for any at-fault accident for three years. When you’re deciding between filing a claim* or paying out of pocket, consider these steps.

  • Get a cost estimate for the repairs at a local shop
  • Use our State of Insurance analysis to see how much an at-fault accident would raise your insurance rates in your state. Because car insurance is regulated by state, it will be state-specific. Again, consider this value over a three-year period.
  • Compare the rate increase plus your deductible to the out-of-pocket value. Choose the cheaper option.

*This primarily relates to damage you cause to your vehicle, such as collision claims. If you cause an accident and the other party does not want you to pay out of pocket, you’re out of options. Moreover, comprehensive or UMPD claims historically have much less financial impact than collision claims. If your vehicle is stolen, vandalized, or hit by an uninsured driver, you shouldn’t expect as much of a financial penalty as you would with a collision claim.

While there are considerable differences from state to state regarding rate increases for at-fault claims, below is the US national average. An at-fault accident will — over the 3-year period — raise your rate by more than $1,700.


Average Rate Increase After at At-Fault Claim

Increase at 6 monthsIncrease at 12 monthsIncrease at 3 Years
+$291+$582+$1,746


Double check for discounts

Although car insurance discounts are typically quite small, they can add up to cut down on your insurance bill. When looking for ways to save, consider the following discounts:

  • Multi-policy discount
  • Good driver discount
  • Paperless discount
  • Payment by bank account
  • Paid-in-full discount (paying your premium in one payment)
  • Multi-vehicle discount
  • Telematics


Shop around

While it’s usually more expensive to insure a luxury vehicle than to cover a standard Honda Accord, don’t be complacent with your insurance company. Because your premium is a reflection of you and your vehicle, it’s often a good idea to shop around for new car insurance quotes every 6 months to see if you can find a better rate elsewhere. Use our car insurance search engine to compare as many options as possible.




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Additional information


Didn't get all your questions answered? See our additional articles for more ways to save on car insurance.





Method to Our Madness: how we do it


Between September and December 2017, The Zebra conducted comprehensive auto insurance pricing analysis using its proprietary quote engine, comprising data from insurance rating platforms and public rate filings. The Zebra examined nearly 53 million rates to explore trends for specific auto insurance rating factors across all United States zip codes, averaged by state, including Washington, DC.

Analysis used a consistent base profile for the insured driver: a 30-year-old single male driving a 2013 Honda Accord EX with a good driving history and coverage limits of $50,000 bodily injury liability per person/$100,000 bodily injury liability per accident/$50,000 property damage liability per accident with a $500 deductible for comprehensive and collision. For coverage level data, optional coverage (that must be rejected in writing) is included where applicable, including uninsured motorist coverage and personal injury protection.

National property and casualty losses information is from the Insurance Information Institute and the NOAA National Centers for Environmental Information U.S. Billion-Dollar Weather and Climate Disasters report.

For vehicle make and model data, analysis referenced the most popular vehicles in the U.S. by 2016 year-end sales according to Goodcarbadcar.net’s automakers’ data.

Finally, some rate data may vary slightly throughout report based on rounding.