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Reviewed by Melanie Musson
Published Insurance Expert

UPDATED: Mar 13, 2020

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Car insurance rates vary from one driver to the next; they also vary between vehicles. Before buying a new vehicle, it’s a good idea to understand how much it might cost you to insure it. Auto insurance costs are part of the long-term ownership expenses of any new vehicle, and a car that’s expensive to insure will cost you a lot over the course of ownership.

There are two primary reasons why a car would be expensive to insure. First, cars that are expensive to own and maintain will cost more to insure than those that are not worth as much. This is because the insurance company will need to risk more money on insuring an expensive vehicle than on a cheap one. The other major factor is the car’s risk level. Vehicles that are likely to be involved in accidents cost more than others, and cars that are more durable and injury resistant will cost less to insure than vehicles that are more delicate.

This is why, on average, high-powered sports and muscle cars are the most expensive vehicles to insure. Luxury sedans and foreign cars are also usually more expensive than domestic or Japanese compact cars and minivans. Pickup trucks are also notoriously cheap to insure because they are not usually driven in congested traffic; thanks to their low gas mileage and utilitarian nature, most pickups stay off the highways most of the time. Some of the most expensive cars to insure include the:

  • Audi R8 Spyder Quattro
  • Mercedes-Benz CL600
  • Mercedes-Benz S600
  • Audi R8 4.2 Quatto Coupe
  • Porsche Panamera Turbo

All of these cars have certain qualities in common. They’re all foreign high-performance luxury vehicles, and all of them are very expensive to replace. The quality of engineering makes for an excellent driving experience, but it does mean that the cars require specialized parts and labor, which raises the cost of claims. The vehicles are all also very small, which makes drivers more likely to sustain injuries, and high-performance vehicles often attract high-risk drivers.

The figures cited above are for a 40-year-old male driver with a perfect driving record. If you have any accidents or infractions on your driving history, your rates can exceed these figures by 25 to 50%. These average figures will vary from one state to the next as well. Your policy may also cost more or less than the average depending on what coverages you choose to carry. Be sure to check your own quote before choosing any particular company to ensure you get the best deal.

How to Save Money on Luxury Vehicle Insurance

When budgeting for a new vehicle, it’s easy to forget insurance costs. People who can pay for a luxury vehicle through careful budgeting may have a difficult time affording the maintenance, gas, insurance and other incidental costs. This is why doing your research before buying a new car is so vital.

Fortunately, it is entirely possible to cut down the costs of your insurance even if you drive an expensive car. Most discounts apply at a driver level, which means you can get the same discount no matter what ind of car you drive. This means that your rates may increase when you buy a luxury car, but they might not rise as much as you would expect them to thanks to your discounts.

In addition to things like safe driver discounts, you can also save money on your premiums by reducing the liability limits, increasing your deductible or reducing the amount of coverages you carry. When modifying your policy in this way, take care that you don’t drop the policy below state limits or what you can afford in the event of a claim. You will want to always have enough money tucked away to cover your deductible in the event of an accident.

If you haven’t already bought your new car, you can get a quote for an estimate of how much that car would cost. This is a great way to decide between two vehicles that you like equally. You can get quotes for both and buy the car that’s cheaper to insure. If you do already own your vehicle, you can contact your insurance company to inquire about discounts and ways to lower your rates. It may even be worthwhile to shop around with other insurers to see if you can get a better discount with another insurer for the vehicle you already own.