Laura Berry is a former State Farm insurance producer and insurance expert.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 18, 2021

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Important facts to know...

  • Choosing to purchase a luxury car often requires more planning and research than traditional car purchases
  • There are increased costs associated with purchasing, maintaining, and providing coverage for a luxury car
  • Deciding on the correct coverage for your luxury vehicle can be difficult
  • There may be some coverage options you are accustomed to that are more expensive for luxury cars, which can mean taking higher deductibles or lower limits of coverage
  • You may face increased costs if there are teenage drivers or high-risk drivers that reside in your home or use your vehicle

Purchasing insurance for a luxury car can be an unexpected cost that you may not consider until after you’ve completed the sale. If you have a luxury car that you need to get auto insurance for, it’s important to consider the risk associated with ownership of such a vehicle.

Compare car insurance quotes today to make sure you find the best price for the coverage you need.

Auto Insurance for Your Luxury Car

Purchasing coverage for a luxury car is similar to insuring other special vehicle types including:

  • classic or antique cars
  • exotic cars
  • muscle cars
  • vintage vehicles

These types of vehicles are often harder to create statistics for because there are fewer of them on the road, fewer accidents involving them, and more costs associated with maintenance and repair.

Your process for acquiring coverage may be more in-depth compared to purchases of traditional auto insurance. However, some insurance providers may be able to provide coverage under a traditional auto insurance policy.

They would be providing you with the same types of coverage, limits, and deductibles that other drivers get.

You may notice that this route is fairly expensive, as luxury cars incur higher costs during an accident or a claim in many situations.

Your insurance provider may end up charging you a rather large premium to offset the potential costs associated with your luxury car coverage. You may be tempted to lower your limits of coverage or remove coverage options completely to offset the cost.

It’s important that you assess the following:

  • risks your car is exposed to
  • price of an incident if one were to occur
  • how you be affected financially if your vehicle was damaged or destroyed

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Things to Remember About Insuring Luxury Cars

The more expensive the vehicle, the more an insurance company will need to spend to repair or replace it and that results in higher insurance costs.

Finding ways to reduce your out of pocket expenses while maximizing coverage is important. You will also want to reduce your risk exposure whenever possible.

One of the biggest ways to reduce your costs is to carry a deductible on your insurance coverage.

The deductible is the amount of the loss the policyholder takes on to reduce the cost for the insurance provider. The deductible also encourages policyholders to only file claims for true losses they cannot handle alone.

Whenever possible, do not list a teenage driver or high-risk driver on your policy for a luxury car. Teenage drivers are a large portion of the drivers that are involved in an accident or crash, which means that allowing a teenage driver to operate your luxury car can be very risky.

High-risk drivers are those that have a high record of the following incidents:

  • accidents
  • citations
  • risky driving behaviors

These drivers may have a poor driving record or a history of filing claims or causing accidents, and your insurance provider may be unwilling to provide coverage for them. If they do, they may add additional fees for providing this coverage.

When you purchase your coverage, you may be able to ask about discounts for low mileage or low amounts of vehicle use.

Some insurance providers ask about mileage traveled each year, and lower amounts of mileage may lead to lower premium costs because vehicles that are not being operated as frequently are subjected to lower amounts of risk.

Always speak to your insurance provider about the options they have available, since different providers may have different discounts or options available.

If you find that your current provider or a potential provider is unable to meet your expectations, you may want to consider shopping around and getting quotes from other carriers. This can help you compare the coverage available as well as the price each carrier will charge.


Luxury cars are exposed to many of the same risks that traditional cars experience, but the costs associated with an accident or a claim can be exceptionally high.

The cost to repair or replace a luxury vehicle can often be many times higher than the cost to repair or replace a traditional vehicle.

It’s important to make sure that your insurance policy has limits of coverage that can handle the risks you are exposed to whenever your luxury car is being used.

Make sure you speak with your insurance carrier about the coverage they offer, their policies and any policy limits, conditions, and deductibles that are listed.

If you find that the policy’s terms do not meet your needs, or you are unable to afford the coverage at a price quoted, you may want to consider another provider.

It’s good to shop around to get multiple insurance quotes which help you compare providers to get the right coverage at the best price.

Compare today using our free rate tool.