The Best Cheap Car Insurance for Luxury Cars (2022)

There are a lot of risks associated with luxury cars, which usually result in higher car insurance costs. However, this doesn’t always have to be the case. MoneyGeek shares ways you can find the cheapest insurance for luxury cars.

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Last Updated: 5/13/2022
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Insurance for luxury cars is typically more expensive than a standard vehicle’s coverage. Several factors contribute to its higher premium, such as more expensive repair costs and an increased likelihood of theft. Although the average rate is $2,989 per year, premiums vary between carriers since they consider multiple factors. These include where you live, how you store and drive your car and even your credit score.

Whether you drive a Mercedes or a Tesla, insurance for a luxury car doesn’t have to be exorbitantly expensive. MoneyGeek’s analysis identified the companies offering the best cheap car insurance for luxury vehicles.

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Key Takeaways

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Different providers offer varying insurance rates for luxury cars. It’s best to shop around for quotes before deciding on a carrier — it may save you several hundreds of dollars in premiums.

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The company offering the best cheap car insurance for luxury cars varies depending on what type of vehicle you have. Knowing which carrier offers the best insurance for your luxury car is crucial because insurers have different rates for different models.

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Although insurance for luxury cars is significantly more expensive than that of a standard vehicle, there are several ways you can reduce your premium, including raising your deductible, opting for pay-as-you-drive insurance or storing your car seasonally when you won’t drive as much.

How Much Is Luxury Car Insurance?

There are many luxury cars available in the market. Due to the costs associated with owning one, having auto insurance for your high-end vehicle can help you with potential expenses in the long term.

Luxury car insurance costs $2,989 on average, but how much you pay for car insurance for luxury cars varies between models. The table below shows several vehicles whose premium falls below the average.

The Average Cost of Luxury Car Insurance
  • Luxury Vehicle
    Description
  • Acura MDX
    $1,279
  • Mercedes-Benz GLA-250
    $1,374
  • BMW 5 Series
    $1,502
  • Audi A4
    $1,528
  • BMW 3 Series
    $1,560
  • Mercedes-Benz C300
    $1,633
  • Tesla Model 3
    $1,712
  • Mercedes-Benz AMG
    $1,952
  • Tesla Model S
    $2,402
  • Tesla Model Y
    $2,872

The Best Cheap Luxury Car Insurance by Vehicle

The best insurance for luxury cars doesn’t come from a single company. MoneyGeek used factors like affordability, user satisfaction, complaint ratios and financial stability to determine the best car insurance company for popular luxury car brands.

MoneyGeek used the driver profile of a 40-year-old male with a clean driving record to determine which carrier offered the best cheap insurance for luxury cars. Our analysis included comprehensive coverage with 100/300/100 limits and a $1,000 deductible. We also considered other factors such as satisfaction ratings and financial strength.

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Tesla Model 3

Best Cheap Luxury Car Insurance Option: State Farm

You can purchase car insurance for a Tesla Model 3 from several companies. MoneyGeek used an internal rating system to evaluate multiple providers and found State Farm to have the best insurance for this particular luxury car.

With an annual average premium of $1,403, State Farm offers the best car insurance for the Tesla Model 3. It received high scores in affordability and claims ratings and even has a perfect score for financial stability. You can find a cheaper policy averaging $1,255 annually from USAA, but these are only available for present and former military members and their families.

How much you pay for insurance on luxury cars is also affected by the year it was released. There is an average $149 difference between a policy for a 2017 model, which costs around $1,618, and a 2020 model. You'll have to pay roughly $1,767 for the newer model.

Tesla Model 3 Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    USAA
    $1,255
  • 2.
    State Farm
    $1,403
  • 3.
    Nationwide
    $1,453
  • 4.
    Progressive
    $1,524
  • 5.
    Allied
    $1,702
  • 6.
    GEICO
    $2,107
  • 7.
    Allstate
    $2,332

Mercedes-Benz C300

Best Cheap Luxury Car Insurance Option: Progressive

A Mercedes-Benz C300 is one of the most popular luxury cars in the market, and several companies offer insurance for this luxury car. MoneyGeek found Progressive to have the best cheap luxury car insurance for the Mercedes-Benz C300. Factoring in various aspects, it scored high across complaint ratio, financial strength and affordability.

USAA is also a solid option since it offers an even cheaper rate for a similar policy, averaging $1,343. The only issue is its coverage isn’t widely available. Only former and present military members and their families can purchase insurance from USAA.

You’ll also find a vast difference in cost between various Mercedes-Benz C300 models. The cheapest policy is for a 2008 model, costing $1,215 per year on average, $674 less than insurance for a 2020 model, with an average annual premium of $1,899.

Mercedes-Benz C300 Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    USAA
    $1,343
  • 2.
    Progressive
    $1,398
  • 3.
    State Farm
    $1,575
  • 4.
    Nationwide
    $1,584
  • 5.
    GEICO
    $1,587
  • 6.
    Allied
    $1,944
  • 7.
    Allstate
    $2,099

Mercedes-Benz AMG

Best Cheap Luxury Car Insurance Option: Nationwide

Among the companies offering insurance for luxury cars, MoneyGeek’s analysis points to Nationwide being the best if you have a Mercedes-Benz AMG. Nationwide scored high in complaint ratio, which means fewer reported instances of discontent.

They also rated well in financial stability, meaning Nationwide would have no challenges reimbursing an approved claim. Notably, Nationwide had a perfect score in affordability, which means their policies are some of the cheapest for this particular luxury car.

MoneyGeek’s analysis showed an average $833 difference in costs for an insurance policy between Mercedes AMG's 2010 and 2020 models. Insurance for the older model costs roughly $1,454 per year, while coverage for the newer one comes to $2,287 per year on average.

Mercedes-Benz AMG Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    Nationwide
    $1,749
  • 2.
    USAA
    $1,803
  • 3.
    State Farm
    $1,851
  • 4.
    GEICO
    $1,857
  • 5.
    Progressive
    $1,902
  • 6.
    Allied
    $2,137
  • 7.
    Allstate
    $2,354

BMW 3 Series

Best Cheap Luxury Car Insurance Option: Progressive

If you have a BMW 3 Series, you’ll have no trouble finding companies offering car insurance. MoneyGeek evaluated multiple providers using an internal rating system and found Progressive to be on top.

Progressive's high scores on complaint ratio and financial stability indicate users are satisfied with how they process their claims. They also offer one of the cheapest insurance policies for this luxury car brand. The only carrier with a lower rate is USAA. If you come from a military family, you’re eligible to purchase USAA policies, making it a solid option.

Rates also vary depending on what year your BMW 3 Series was released. Insurance for a 2019 model costs an average of $1,718 per year, while you only pay an average annual premium of $1,332 for a 2014 model. That’s a difference of $386.

BMW 3 Series Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    USAA
    $1,249
  • 2.
    Progressive
    $1,346
  • 3.
    State Farm
    $1,499
  • 4.
    Nationwide
    $1,566
  • 5.
    Geico
    $1,590
  • 6.
    Allied
    $1,830
  • 7.
    Allstate
    $1,947

BMW 5 Series

Best Cheap Luxury Car Insurance Option: Progressive

Numerous companies offer insurance for luxury cars, including a BMW 5 Series. After comparing potential providers, MoneyGeek determined that Progressive has the best cheap insurance for this luxury car.

It’s not just about how much luxury car insurance costs — it's also essential to consider aspects like the number of customer complaints and the organization’s financial strength. Based on MoneyGeek’s rating system, Progressive scored highly in both these areas. Affordability is another benefit since their policy for a BMW 5 Series averages at $1,362 per year. This amount may vary depending on your car's model. For instance, an insurance policy for a 2005 model costs $1,156 on average, but if you have a 2020 model, the premium is $718 higher at an average of $1,874.

If you’re eligible, USAA is also a solid option. They offer the cheapest luxury car insurance for military families for a BMW Series 5 at $1,187 on average.

BMW 5 Series Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    USAA
    $1,187
  • 2.
    Progressive
    $1,362
  • 3.
    GEICO
    $1,438
  • 4.
    Nationwide
    $1,471
  • 5.
    State Farm
    $1,502
  • 6.
    Allied
    $1,680
  • 7.
    Allstate
    $1,918

Audi A4

Best Cheap Luxury Car Insurance Option: GEICO

Averaging $1,293 per year, GEICO is the best cheap luxury car insurance provider available for an Audi A4. Although affordability plays a big part in their ranking, MoneyGeek also evaluated companies offering luxury car insurance using other factors. Financial strength was a consideration, and GEICO scored perfectly in this area.

Your actual premium can still vary since rates are affected by how old your car is. If you have a 2005 A4, you’ll have to pay an average annual premium of $1,068. For a 2020 model, the rate increases by $705. Your luxury car insurance will cost $1,773 per year on average.

Audi A4 Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    GEICO
    $1,293
  • 2.
    USAA
    $1,343
  • 3.
    Progressive
    $1,460
  • 4.
    State Farm
    $1,470
  • 5.
    Nationwide
    $1,548
  • 6.
    Allied
    $1,853
  • 7.
    Allstate
    $1,918

Acura MDX

Best Cheap Luxury Car Insurance Option: GEICO

When it comes to luxury cars, having a solid insurance policy is crucial. MoneyGeek determined that GEICO offers the best cheap luxury car insurance for an Acura MDX.

Among the various areas MoneyGeek used to evaluate companies with luxury car insurance policies, GEICO received perfect scores for two — financial stability and affordability. It means if you purchase your affordable luxury car insurance from them, they'll have no problem reimbursing your approved claim. GEICO also has the lowest annual premium among the different carriers included in MoneyGeek’s study. Their policy costs $1,056 per year on average.

You’ll need to take into consideration how your luxury car insurance premium may change depending on your Acura’s age. A policy for a 2018 model costs $1,364 per year on average, while you only have to pay an average annual premium of $1,038 for a 2005 model. That’s a $326 difference.

Acura MDX Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    GEICO
    $1,056
  • 2.
    Progressive
    $1,133
  • 3.
    USAA
    $1,181
  • 4.
    Nationwide
    $1,237
  • 5.
    State Farm
    $1,250
  • 6.
    Allied
    $1,258
  • 7.
    Allstate
    $1,658

Tesla Model S

Best Cheap Luxury Car Insurance Option: Progressive

Progressive is one of the best insurance providers for luxury cars. It grabs the top spot in MoneyGeek's analysis, offering the best cheap luxury car insurance for a Tesla Model S.

Although Progressive didn’t score perfectly in any particular criterion in MoneyGeek’s rating scale, it consistently received high ratings in most. It scored highest in affordability since it has one of the cheapest luxury car insurance policies for a Tesla Model S. The only company offering a lower premium is USAA. If you’re from a military family, this can also be an excellent option for you.

Luxury car insurance rates for the Tesla Model S vary based on its model. Coverage for a car purchased in 2020 costs an average of $2,665 per year. It’s roughly $1,081 higher than the average annual premium of $1,584 if you have a 2016 model.

Tesla Model S Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    USAA
    $1,648
  • 2.
    Progressive
    $1,721
  • 3.
    Nationwide
    $1,841
  • 4.
    State Farm
    $2,154
  • 5.
    Allied
    $2,276
  • 6.
    GEICO
    $2,747
  • 7.
    Allstate
    $3,857

Mercedes-Benz GLA 250

Best Cheap Luxury Car Insurance Option: GEICO

The Mercedes-Benz GLA 250 is one of the most popular luxury cars available in the market. Although the cost for its coverage is more expensive than a standard vehicle, MoneyGeek’s analysis shows you can purchase the best cheap luxury car insurance for this vehicle from GEICO.

Among the various companies MoneyGeek evaluated, GEICO’s policy has the lowest premium at $1,145 per year on average. But it isn’t all about affordability. GEICO also received a perfect score for financial stability, which is another vital area you should consider when choosing a luxury car insurance provider.

MoneyGeek compared luxury car insurance rates for 2016 and 2020 models and found a difference amounting to $130 on average.

Mercedes-Benz GLA-250 Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    GEICO
    $1,255
  • 2.
    State Farm
    $1,403
  • 3.
    Nationwide
    $1,453
  • 4.
    Progressive
    $1,524
  • 5.
    Allied
    $1,702
  • 6.
    GEICO
    $2,107
  • 7.
    Allstate
    $2,332

Tesla Model Y

Best Cheap Luxury Car Insurance Option: Progressive

The best companies offering cheap luxury car insurance policies are different for each type of vehicle. You’ll get the best deal from Progressive for the Tesla Model Y.

The best luxury car insurance companies don't just give you the lowest rate — they also provide a positive overall experience. You can expect this from Progressive since MoneyGeek’s internal rating system shows they score highly in three areas — complaint ratio, financial stability and affordability. It means that for a more affordable premium, Progressive will handle your approved claims objectively and efficiently.

The Tesla Model Y was only unveiled in 2019 and began deliveries to the U.S. in March 2020. Therefore, there is not yet much data about the varying cost of coverage for different model years of this vehicle.

Tesla Model Y Insurance Rates

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  • Insurer
    Average Annual Cost
  • 1.
    Progressive
    $1,631
  • 2.
    State Farm
    $2,044
  • 3.
    USAA
    $2,099
  • 4.
    GEICO
    $2,436
  • 5.
    Allied
    $3,693
  • 6.
    Allstate
    $4,407
  • 7.
    Nationwide
    $5,249

What Is Luxury Car Insurance?

What sets luxury cars apart are the materials manufacturers use in making them. They have more expensive, high-quality parts, including more costly interiors and powerful engines. It’s what makes having insurance for luxury cars vital. It costs more to repair or replace a luxury car after an accident or a theft.

Don’t mistake exotic cars for luxury cars — they aren’t interchangeable. Luxury cars are made primarily for comfort and experience. Owning one is considered a status symbol. Exotic vehicles are also often called supercars. Although they also have higher-end materials, manufacturers built them for speed, not comfort.

High-End Auto Insurance Coverage Options

You can choose to include various coverages in your luxury car insurance policy. Besides liability insurance, you can choose to have comprehensive and collision insurance (also known as a full coverage car insurance policy). You can also consider other less common options, such as gap insurance or new car replacement coverage.

Most states only require you to carry liability coverage, but having liability-only insurance will likely not be enough if you're driving a luxury car. Although the other coverages mentioned are optional, it may be worth it since luxury cars are typically considered high-value.

Use the table below to better understand the different coverages available to you and choose which types of insurance work best for you based on your vehicle and circumstance.

High-End Auto Insurance Options
Type of Insurance
What It Covers
Required or Optional

Liability Insurance

Protects you from expenses incurred by the other driver from medical treatment and repairs if you caused an accident

Required

Collision and Comprehensive

Helps you pay for damages to your car. Collision insurance covers damages your car sustains during a crash. Comprehensive insurance covers damages from non-collision-related incidents.

Optional (unless you are still making payments on your car since most financial institutions require full coverage)

Gap Insurance

Covers the difference between your car’s current value and how much you still owe for it. It’s best to include gap insurance if you have a relatively new car and you opted to finance it for 60 months or longer.

Optional

Personal Injury Protection or Medical Payments Insurance

Covers costs from the medical treatment you or your passengers need due to an accident, regardless of who was at fault. It may also help with lost income due to injuries, health insurance deductibles and funeral services.

Optional (unless part of your state’s minimum insurance requirements)

New Car Replacement Coverage

Reimburses you for the cost of a new model of the same vehicle if it gets totaled, not its depreciated value. You can only add this coverage if you have full coverage car insurance.

Optional

How to Save on Luxury Car Insurance Costs

There's no denying that the cost of insurance for luxury cars can be expensive. Don’t worry — there are several ways to lower the cost of insurance for a luxury car. MoneyGeek explored various steps you can take to help reduce your luxury car insurance premiums.

1

Shop around for the best luxury vehicle insurance rates.

Luxury car insurance premiums vary between states as well as providers. Taking the time to compare luxury car insurance quotes can result in hundreds of dollars in savings. Make sure you provide accurate and consistent information to multiple providers so you’ll get a better idea of what rates are available to you.

2

Take advantage of bundling your policies.

Most insurance companies offer discounts if policyholders purchase multiple insurance products from them. If you have a homeowners policy, check the deal your provider can provide if you purchase your luxury car insurance from them as well.

3

Ask about discounts.

You should also check what discounts are available to you. Most car insurance providers have an extensive list of discount programs. Some discounts are related to driver safety. If you remain accident-free for 3–5 years, you can get a sizable discount.

Other discounts have to do with your driver profile, not just your driving habits. If you're in the military or are a good student, it may result in a lower premium. Having anti-theft devices installed in your vehicle can also help lower your rate.

4

Use a car insurance comparison tool.

If your main objective is to find the cheapest insurance rate possible for your luxury car, an online comparison tool can make your search faster. The platform goes through different quotes from several providers using the information you provided.

It’s a good approach when you’re trying to narrow down your initial choices. Once you have your top three or four providers, it’s still best to consult with them directly. The downside to online comparison tools is that they won’t show you available discounts.

5

Raise your deductible.

Choosing a higher deductible typically results in a lower premium since you’ll pay more out of pocket each time you file a claim before your insurer begins to cover costs.

6

Consider pay-as-you-drive coverage.

If you don’t drive often, pay-per-mile coverage may be a better option than purchasing a standard policy. It uses your driving habits (particularly how frequently you get behind the wheel) to calculate rates.

7

Opt for vehicle storage in the off-season.

You may want to consider putting your vehicle in storage if you only use it seasonally. Some insurance companies will allow you to drop liability and collision coverage while keeping comprehensive. It’s a win-win scenario since you’ll get lower rates while still having coverage for non-collision-related incidents.

Luxury Car Insurance Frequently Asked Questions

Drivers may have a lot of questions about insurance for luxury cars. Knowing the answers to some frequently asked questions can help you find the best policy for your needs.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.