What Are Some Luxury Cars That Are Cheap to Insure?
Last Updated on November 12, 2022
Luxury cars are expensive to buy and expensive to repair. Many of them are also expensive to insure.
However, it’s possible to buy a luxury car without spending a fortune on car insurance. Today, some luxury cars have surprisingly affordable insurance premiums.
Acura, Volvo, Alfa Romeo, Infiniti, and Lincoln vehicles, for example, all have lower-than-average insurance premiums compared to other luxury brands.
Keep reading to discover the cheapest luxury cars to insure.
- Luxury Car Insurance Costs $2,498 Per Year, On Average
- Top 10 Cheapest Luxury Vehicles to Insure
- Top 5 Cheapest Luxury Brands to Insure
- Top 7 Most Expensive Luxury Brands to Insure
- Why Luxury Car Insurance is More Expensive
- Other Factors Impacting the Cost of Luxury Car Insurance
- Final Word on Cheap Luxury Cars to Insure
Luxury Car Insurance Costs $2,498 Per Year, On Average
The average luxury car owner pays around $2,498 per year for car insurance, which is roughly $1,000 more per year than the average driver in the United States, who pays around $1,450 per year for full coverage car insurance.
Luxury car owners pay more for car insurance because their vehicles tend to have higher MSRPs. They cost more to buy, which means your insurer needs to cover more value.
If your $70,000 luxury SUV is involved in a total loss insurance claim, then your insurer owes you $70,000. If your $5,000 non-luxury sedan is in a total loss insurance claim, then your insurer owes you $5,000.
Luxury vehicles also tend to have higher repair costs. You may need to visit a specialty mechanic. The vehicle may need special, luxury components. Instead of paying $750 to replace the shocks and struts, you may pay $2,500. After an accident, your insurer could need to pay thousands more for repairs than it would with an ordinary vehicle.
For all of these reasons and more, the average luxury car insurance is much higher than it is for the average driver in the United States.
Top 10 Cheapest Luxury Vehicles to Insure
Mercury Insurance ranked the cheapest luxury vehicles to insure in 2022.
According to Mercury Insurance, the top 10 cheapest luxury vehicles to insure in 2022 include:
- Mercedes A220 / A250
- Audi A3 / S3
- Acura ILX
- Acura TLX
- Lexus IS / ES
- BMW i3
- Infiniti Q50 / Q60
- BMW 330 / M340
- Audi S4
- Mercedes CLA / 250 / C300
Other luxury vehicles cheap to insure include the Lincoln Nautilus, Acura RDX, Acura MDX, Mercedes GLC300, Infiniti QX50 / QX60, Lexus NX / RX, and the BMW X5.
Top 5 Cheapest Luxury Brands to Insure
Certain luxury brands tend to offer cheaper car insurance rates than average. Although prices vary widely based on models and value, the cheapest brands for overall average car insurance premiums include:
- Alfa Romeo
The average Acura driver pays around $1,945 per year for full coverage car insurance, while the average Volvo driver pays around $2,002 per year, making them the two cheapest luxury brands for car insurance.
Other cheap luxury brands to insure include Cadillac, Lexus, Mercedes-Benz, Land Roger, and Jaguar. On average, these brands have cheaper car insurance premiums than other luxury brands.
Top 7 Most Expensive Luxury Brands to Insure
Certain luxury car insurance brands are notoriously expensive to insure. If you’re looking for cheap car insurance for your luxury vehicle, then you should avoid the following brands.
The top seven most expensive luxury brands to insure include:
The average Rolls-Royce drivers pays around $8,135 per year for full coverage car insurance, while the average Lamborghini driver pays around $7,983 per year.
Why Luxury Car Insurance is More Expensive
There are obvious reasons why car insurance is more expensive on luxury vehicles – like higher MSRPs and costlier repair bills.
Here are some of the reasons why you pay more for luxury car insurance:
Higher MSRPs: The manufacturer’s suggested retail price (MSRP) tends to be higher for luxury vehicles. In a total loss insurance claim, your insurer needs to cover the full cash value of the vehicle, minus depreciation. That means higher risk for your insurer, and your insurer charges higher premiums to offset this risk.
Higher Repair Costs: It costs more to repair a luxury car. Luxury cars often require special components. You may need to visit a special repair shop. All of these factors can lead to higher repair costs.
Specialty Luxury Car Insurance Companies: GEICO, State Farm, and other major insurers cover many popular luxury vehicles. However, you may need to work with a specialty insurer or a high-risk insurance company. Some of these insurers actually charge lower rates than major insurers because they understand luxury car-related risk better than anyone.
Other Factors Impacting the Cost of Luxury Car Insurance
A Volvo driver in Florida could pay triple the car insurance premiums of a Volvo driver in Idaho – even if they’re with the same company. Insurers charge different rates for luxury car insurance based on age, driving history, state insurance laws, and even your ZIP code, among other factors.
Here are some of the other factors impacting the cost of luxury car insurance:
Safety Rating: Some luxury cars have strong safety ratings, while others do not. Some luxury cars are so luxurious, in fact, that they’re not tested by mainstream vehicle safety testing organizations. This makes it difficult for insurers to assess risk. The higher the safety rating, the lower the risk for your insurance company.
Model & Trim: Many of the cheap luxury cars to insure listed above have different models and trims that can impact insurance premiums. You could pay hundreds more per year for car insurance for a specific trim, for example. The Acura TLX SH A-Spec, for example, has average annual insurance premiums of $1,902 per year, while the Acura TLX 2.4L has average annual insurance premiums of just $1,702 per year.
Driving History: Do you have a history of causing at-fault accidents? Do you have multiple at-fault accidents or DUIs on your record? Or do you have multiple decades of safe driving history? Insurers consider your driving history when calculating premiums. Luxury vehicle drivers with a good, safe driving history pay significantly less for car insurance than drivers with multiple citations or at-fault incidents.
State Insurance Laws: Some states have relatively expensive insurance premiums, while other states have relatively cheap premiums. You could pay significantly different luxury car insurance premiums based on where your vehicle is registered.
ZIP Code: Where do you park your luxury car at night? If you park it in a ZIP code with a high rate of crime, then you increase the risk of your insurer covering a total loss insurance claim. If someone steals your luxury vehicle, your insurer may need to cover the cost of replacing that vehicle. That’s why insurers consider your ZIP code when calculating insurance premiums.
Available Discounts: Luxury car owners can take advantage of discounts too. You could save hundreds per year on luxury car insurance by bundling, using a driver tracking system, or requesting low mileage discounts, among other available options.
Age & Value of Vehicle: You might drive a luxury brand like a Mercedes-Benz. However, there’s a big difference between a 1990 Mercedes-Benz 300 and a 2022 Mercedes-Benz 300. Older cars tend to be cheaper to insure (unless your car is a classic, in which case different rules apply).
Final Word on Cheap Luxury Cars to Insure
Luxury cars are generally more expensive to insure.
However, by choosing the right brands, shopping around for car insurance, and taking advantage of discounts, you can pay surprisingly cheap rates for luxury car insurance.
Consider buying a vehicle from Acura, Volvo, Alfa Romeo, Infiniti, or Lincoln for cheap luxury car insurance. Or, buy vehicles with cheap luxury car insurance premiums, like the Mercedes A220 / A250, Audi A3 / S3, Acura ILX, Acura TLX, and Lexus IS / ES, among others.
Use our online form to compare luxury car insurance premiums today and find the cheapest luxury vehicle insurance for your unique needs.