When calculating your car insurance rates, your provider will take several factors into consideration, including what kind of car you drive. Before you purchase a new car, you should know which ones are the most expensive cars to insure. While you may be able to afford the car payments, the cost of insuring a luxury car could break the bank.
The Most Expensive Cars to Insure
In a survey of leading insurance providers, The Zebra gathered quotes for various luxury vehicles. They found that the following cars are the most expensive to insure:
- Maserati Quattroporte: $5024 a year
- Audi R8: $4568 a year
- BMW i8: $4372 a year
- Mercedes-AMG GT: $4130 a year
- Nissan GT-R: $4064 a year
- Maserati Ghibli: $4018 a year
- Mercedes-Benz S-Class: $3742 a year
- Porsche 911: $3734 a year
- Tesla Model S: $3620 a year
- BMW 7-Series: $3522 a year
The Zebra notes that these are average quotes and that quotes can vary depending on a driver’s provider, age, and other factors.
Why Are Certain Types of Vehicles More Expensive to Insure?
As NerdWallet points out, different types of vehicles cost more to insure for various reasons. They suggest you avoid the following vehicles if you want to keep your car insurance costs at a minimum:
- Sports Cars: Because sports car drivers are typically younger than drivers of other vehicles, insurance companies consider them a higher risk to insure. Plus, they’re built for speed, which can tempt drivers into engaging in unsafe driving habits that can lead to accidents and traffic citations.
- High-End Luxury Cars: Parts for luxury cars are more expensive than other car parts, meaning that these types of cars cost more to repair after an accident. They’re also more costly to replace if an accident results in a total loss.
- Electric Vehicles: Just replacing the battery in an electric car can cost thousands of dollars, so you can imagine how expensive it is to repair or replace an EV after a severe accident.
- Cars Targeted by Thieves: If you own a model that is a common target of car theft, expect to pay higher rates because your vehicle is a greater risk to insure.
What Type of Coverage Do You Need for a Luxury Vehicle?
If you do decide that owning a luxury vehicle is worth the additional insurance costs, it’s essential that you purchase enough car insurance to protect your investment. ValuePenguin recommends that your policy include the following:
- Liability Coverage: While most states require drivers to purchase a minimum amount of car insurance, your state’s requirements may not be enough to cover the costs if you’re at fault for a severe accident. It’s a good idea to purchase enough liability insurance to cover all of your at-risk assets so that you don’t have to pay for anything out of pocket and you’re protected from lawsuits.
- Collision and Comprehensive Coverage: If you’re making payments on or leasing your luxury vehicle, there’s a good chance that your lender or leasing company will require you to purchase collision and comprehensive insurance. Collision insurance pays for repairs to your car after an accident with another vehicle or structure. Comprehensive insurance pays for damages that are the result of theft, vandalism, or natural disaster.
- Personal Injury Protection (PIP): Some states mandate drivers to carry PIP coverage, while in other states, it’s optional. PIP will pay for your medical bills if you’re injured in an accident, regardless of who is at fault. It will also cover your passengers’ medical care.
- Gap and New Car Replacement Coverage: If you owe more on your car than your insurance will pay to replace it, gap coverage will pay the difference. New car replacement coverage will pay you what your car’s worth if you’ve purchased the vehicle outright.
How to Save Money on Luxury Car Insurance
Even if you own a car that is expensive to insure, you can take steps to save money. Coverage recommends that you:
- Raise your deductible: When you raise your collision and comprehensive deductibles, your provider will lower your premiums. Just make sure that you can afford to pay a higher deductible out of pocket if you have to file a claim.
- Improve your credit score: Insurance companies view drivers with lower credit scores as less financially responsible and a greater risk to insure. Even if you can manage to raise your score by a few points, your provider will reward you with a significant decrease in rates.
- Ask for discounts: Insurance companies offer all sorts of discounts that you probably qualify for. If you haven’t already, consider bundling your home owner’s insurance policy with the same company that provides your car insurance. You can also get a discount for adding all of your household’s vehicles to the same policy. If your insurance company has a safe driver program, you can earn a discount by tracking your driving habits with a telematics device or smartphone app. Your teen driver might qualify for a student discount by maintaining a 3.0 GPA or higher.
- Shop around for quotes: If your policy is up for renewal, see if your provider offers a loyalty discount for renewing your policy. If they don’t, you might want to get quotes from other companies to see if they’ll offer you lower rates.
Now that you know which cars are the most expensive to insure, you can make more informed decisions when shopping for a new vehicle and car insurance. By doing your due diligence, you can get the best coverage at a reasonable price.
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