There are certain brand names in the automobile business that are synonymous with luxury, including BMW, Mercedes-Benz, Jaguar and Porsche. It is a source of pride to own a luxury vehicle and a feeling of pleasure to be able to drive one. But it also represents a sizable financial responsibility because auto insurance for luxury cars tends to be one of the most expensive for any type of vehicle, often reaching $3,500 on an annual basis or more. Unless you have the financial resources to afford at least the minimum insurance requirements mandated by the state the car is registered in, you may have to settle for a mini-van rather than your dream Mercedes.
Repair Costs And Other Factors
The amount that it will cost your insurance company to either repair or replace a damaged luxury car that has been involved in an auto collision is one of the key determining factors on how expensive luxury car insurance rates might be. One way to compensate for high luxury car insurance premiums is to increase the amount of the deductible or the out of pocket costs that the policy holder pays first in an insurance claim in order to help lower luxury car insurance premiums.
On the other hand, newer models of luxury cars tend to have the best safety track records which can help prevent insurance costs from becoming too expensive. It helps to choose a luxury car outfitted with such features as an anti-collision system and traction control, both of which dramatically reduce the chances of having an accident, which works in the favor of the driver seeking to lower his luxury car insurance premiums. Auto insurance rates on newer model luxury cars that offer the latest safety and anti-theft features can actually be lower than rates on pre-owned classic luxury cars which don’t have as many of those desired features which tend to qualify for lower rates.
Good Credit Matters
One way that luxury car drivers can enjoy lower insurance premiums is by maintaining a better than average credit record, a statistic that many insurance companies use as a yardstick to determine insurance rates. If an individual is wealthy enough to be able to purchase a luxury car, this is a mark of financial responsibility that works in their favor not only in obtaining auto insurance but in keeping their rates at moderate levels.
Lowering Rates Further
Although at the starting point, insurance costs for luxury cars are typically in the expensive range of the scale, luxury car owners are also entitled to use a variety of discounts offered by insurance companies to reduce their premiums by anywhere from 5% ro 40%. Drivers can qualify for these discounts by maintaining a no-accident/no-tickets/no claims driving record, by completing a defensive driving course, by installing the latest safety equipment and anti-theft tracking systems in their vehicles, by raising their deductible limit, by belonging to a group or organization entitling them to a group rate, or insuring multiple cars from any car category, luxury through economy, with the same insurer. And even if a luxury car owner can easily afford to pay high premiums, it’s in their best interest to shop around and ask questions in order to secure the most benefits for the premium paid.
View more auto insurance rates depending on car type.