Here are the best car insurance providers for luxury vehicles. We evaluated insurance companies based on auto insurance rates, complaint levels, coverage options, and claims procedures.
It’s worth noting that your car insurance costs will likely increase for a luxury car. Shopping for car insurance when buying your luxury car can help you ensure you can afford both.
Summary: Best Luxury Car Insurance Companies
- Travelers: Best overall
- Nationwide: Best for drivers with a speeding ticket
- Erie: Best for collision repairs
- Progressive: Best for drivers with a DUI
- Auto-Owners: Best for new cars
Our Top Picks
Why You Can Trust Forbes Advisor
Our ratings take into account a product’s cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team. Advertisers do not and cannot influence our ratings.
We analyzed: 1,040 car insurance rates, 130 coverage details. Our editorial team has 108 years of insurance experience.
The Best Car Insurance for Luxury Cars
Here are our picks for the best car insurance for luxury cars. See which may be a good fit for you.
Best Overall: Travelers
- Average annual cost for luxury cars: $2,561
- Collision repair grade: C
- Complaint level: Very low
Editors’ Take: Travelers earned our overall best ranking because of its low-cost luxury car insurance costs, which are the cheapest among the companies we evaluated. Travelers rates are great for both drivers with a clean record and those with accidents and citations. It also offers lots of coverage options, making it worth a look when shopping around.
Pros
- Offers accident forgiveness, new car replacement and a vanishing deductible.
- Has a very low level of complaints made against it for auto insurance.
- Good rates for senior drivers.
Cons
- Doesn’t offer SR-22 insurance.
- Rates are only mediocre for drivers with poor credit.
States Available In Travelers auto insurance is available in 42 states and Washington, D.C.
Best For Drivers With A Speeding Ticket: Nationwide
- Average annual cost for luxury cars: $2,783
- Collision repair grade: C
- Complaint level: Low
Editors’ Take: We picked Nationwide because of its good luxury car rates and great rates for drivers with a speeding ticket on their driving history. Its rates for various driving profiles are fairly competitive, so we suggest you consider Nationwide when shopping for luxury car insurance.
Pros
- Offers gap insurance and new car replacement coverage.
- Has accident forgiveness and a vanishing deductible.
- SmartRide, its usage-based insurance program, is available for safe drivers to try and earn a discount.
Cons
- Rates for drivers with a DUI are higher than some top competitors.
States Available In Nationwide car insurance is available in 46 states and Washington, D.C.
Best for Collision Repairs: Erie
- Average annual cost for luxury cars: $2,833
- Collision repair grade: A-
- Complaint level: Low
Editors’ Take: We’re impressed by Erie’s grade of an A- for its claims procedures from collision repair professionals, which shows it provides quality claims service. Erie also has good rates for luxury cars and a low level of complaints against it for auto insurance.
Pros
- Gap insurance, accident forgiveness and vanishing deductibles are available.
- Has new car replacement for new cars and better car replacement for older cars.
- Offers rideshare insurance
Cons
- Costs for drivers with poor credit are higher than those of some other top competitors.
- Only available in 12 states.
States Available In Erie is available in 12 states and Washington, D.C.
Best for Drivers With a DUI: Progressive
- Average annual cost for luxury cars: $3,326
- Collision repair grade: C
- Complaint level: Low
Editors’ Take: We like Progressive for its budget-friendly luxury car insurance rates and for having the lowest cost for drivers with a DUI among the companies we analyzed.
Pros
- Has a low level of complaints made against it for auto insurance with state insurance departments.
- Offers SR-22 insurance for those in need.
- Accident forgiveness, gap insurance and a vanishing deductible are available.
Cons
- Doesn’t offer new car replacement coverage.
- Snapshot, Progressive’s usage-based program, may potentially cause your rates to go up instead of down if you receive a low driving score.
States Available In Progressive is available in all 50 states and Washington, D.C.
Best for New Cars: Auto-Owners
- Average annual cost for luxury cars: $3,499
- Collision repair grade: B
- Complaint level: Low
Editors’ Take: We like Auto-Owners for its abundant coverage choices for new car owners. You can get “purchase price guarantee” coverage.
Pros
- Accident forgiveness and a vanishing deductible are also available.
- Offers gap insurance, which can help if you owe more on your car than what you owe on it.
- Received a grade of B with collision repair experts for its claims process.
Cons
- Has fairly high rates for drivers with bad credit.
- Doesn’t offer SR-22s.
States Available In Auto-Owners car insurance is available in 26 states:
Exotic Cars vs. Luxury Cars: The Difference
Exotic cars are produced in more limited numbers, therefore, rarer. Examples include Ferraris, McLarens, and Lamborghinis but both share high-quality features and advanced technology.
Car insurance companies define exotic cars differently based on make, model, horsepower, and more. Their value and performance can lead to higher claim payouts if damaged, totaled, or stolen. Not all will insure exotics, but most will insure luxury cars.
Cost of Luxury Car Insurance
The national average cost of insuring a luxury car is $4,094 per year. This is 102% more expensive than the cost of insuring a Toyota RAV4. We found Travelers to be the cheapest insurance company for luxury cars. Its average cost is $2,561 per year, which is 37% cheaper than the overall national average.
Luxury cars with higher values will cost more to insure because they are more expensive to repair or replace. Below are examples of rates for luxury cars:
Factors That Affect Exotic and Luxury Car Insurance Rates
- Age and years of driving experience.
- Car insurance history.
- Car make and model.
- Coverage selections.
- Claims history.
- Credit-based insurance score.
- Deductible amount.
- Driving record.
- Gender.
- Location.
Exotic vs. Luxury Car Insurance Coverage
Exotic cars may need specialized coverage to ensure that rare, custom or high-performance parts or special events are adequately covered. However, the basics of car insurance policies for exotic and luxury cars are the same.
Car Insurance Coverage for Luxury Cars and Exotic Cars
Car insurance for luxury cars and exotic cars includes the same basic coverage as standard cars. Core coverage types that make up a full coverage car insurance policy include:
- Liability Insurance: Pays others for injuries and property damage if you cause a car crash.
- Uninsured Motorist Insurance: Covers medical bills if hit by someone without liability insurance.
- Personal Injury Protection Coverage: Pays for medical bills and other expenses if injured in a car accident.
- Collision Insurance: Pays for car repairs or total loss after a car accident.
- Comprehensive Coverage: Pays for theft and non-crash damage.
If you have a car loan, you will normally be required by your lender to purchase collision and comprehensive insurance.
Speciality Auto Insurance Policy for Exotic Cars
Many companies will only insure cars less than $150,000, so specialty auto insurance companies offer policies specifically tailored to exotic cars.
Benefits include:
- Agreed On Value: You and your insurance company agree on the value of your vehicle and that value is what you’ll be paid in a total loss.
- Custom Parts: Pays if custom parts added to the car are damaged in an accident.
- Race Car Coverage: Some insurers provide this coverage for modifications for the track, such as a roll cage and fire extinguisher. This will cover time in the paddock, but not while driving on the track.
Qualifications May Include:
- Your vehicle meets a company’s definition of an exotic or collector car.
- You have a different car as a daily driver.
- You have a driving record free of accidents and no more than one minor moving violation.
- Drivers have a certain number of years of driving experience, such as 10 years.
- Drivers may be required to be at least age 25.
- The car must be stored in a locked, private garage.
- The car will be driven a limited number of miles each year.
Cheapest Luxury Cars to Insure
Some luxury cars have more features and capabilities than others, which makes them pricier to buy and insure. Here are the luxury cars we found to be the top 10 cheapest to insure:
