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Luxury Car

For some, it is a matter of opinion as to what a luxury car is. For those that own a new model family car that has all the built-ins for convenience to them, this may be their luxury car. Those involved in the car industry will have their view as to what are the best luxury cars. Insurance companies will also comprise their list. They will use this list when determining what the insurance cost is for a luxury vehicle.

What Constitutes a Luxury Car?

luxury car

There are different responsibilities that come with luxury car ownership. It requires careful thought and planning for this.

One of these is paying for the vehicle insurance. It helps to know what the characteristics are for a luxury car. Knowing this helps to determine if this is the type of car one wants to invest in.

Luxury Car Characteristics

  • They are high-performance vehicles.
  • Luxury cars arent cheap and usually will cost $100,000. Or more depending on the brand.
  • Maintenance costs are higher and more complex
  • Repairs are usually expensive. It can be more difficult finding a mechanic that specializes in that make and model of car.

Misconception About Luxury Car Insurance

Some may think that luxury car insurance is more expensive because the driver can afford it. Luxury cars are expensive. There may be some that believe that only the wealthy can afford the costs associated with this type of vehicle. That is not the viewpoint that Insurance Companies take. These companies have to weigh out the risk factors. They need to consider what could cost the Insurance Company money. With the luxury cars, there are several risk factors.

What Risk Factors Do The Insurance Companies Consider for the Luxury Vehicles?

luxury vehicles

Insurance Companies must consider the risk factors. They have to do this any time they are going to determine the cost of the vehicle insurance.

The risk factors concerning the vehicle are part of this. For the luxury vehicles they may take into consideration the following risks:

Parts Replacement:

If a luxury vehicle is in an accident, it will require repair or replacement. In many cases, the luxury cars come from other countries. It may mean the repair parts are not easily found in the region where the car needs to be repaired. The parts will have to purchase from other countries. It increases the costs of the parts. The Insurance Company is responsible for this cost.

Specialized Mechanics:

Many of the luxury vehicles are foreign cars. When they are in need of repair, it may require a mechanic with specialized training. Their fees are going to be much higher than a regular mechanic. In addition to this, they may need special tools to fix these types of vehicles. These tools are expensive to buy. The extra training of the mechanic and the special tools drive up the cost of repair.

Vehicle Replacement:

If the car needs replacing, then the costs to do so for luxury vehicles is very high. Many of the luxury vehicles cost over $100,000. When purchased new. The replacement cost may be less it is still more expensive for the Insurance Companies. Luxury vehicles do not depreciate the same as standard vehicles. So this helps to scale up what the replacement cost would be.


Car thieves most often will target high-end vehicles. They usually will not pass up the chance to steal a luxury vehicle. These vehicles stand out from the rest so they are attention grabbers. Sometimes that attention i makes the vehicle more at risk for theft. It is a concern for the Insurance providers.

The Characteristics of the Driver:

Another factor that is the driver. There are the standard risk factors the Insurance Company will take into account. It is the age of the driver and their experience. Plus, the Insurance Company may look at statistics. If statistics are available as to what type of buyer usually buys a particular luxury vehicle, this is important. For example, stats may show that it is a younger crowd that goes for the sports luxury vehicles. It may indicate they have riskier driving habits. Information like this is helpful for the Insurance Companies.

How to Find the Best Insurance for Luxury Cars

The best insurance is going to be that which offers the best coverage. Drivers of luxury vehicles want to know their car is well protected by the Insurance they buy. Plus, they want the best premiums that fit with the best coverage. All of this means doing some careful insurance shopping.

The Selection of Insurance Companies

Not all Insurance Companies may offer luxury vehicle insurance. There are a lot of Insurance Companies that will compete against each other. They do this by providing different types of discounts. They will only offer discounts that will not increase their risks of claims. Discounts for luxury vehicles may not be as viable for the Insurance Companies. Therefore it can be more difficult for the luxury vehicle owner to have choices in insurance. That doesn’t mean that they don’t exist.

Insurance Comparisons

The best way to decide on luxury vehicle insurance is to first get some quotes. It will help to narrow down the list of Insurance Companies. It can be for those who offer luxury vehicle insurance.

Then the insurance shopper can start doing some price comparisons. At the same time, the price comparisons to what the Insurance offers is a good idea. Everyone looking for this type of insurance is going to have their priorities.

Special Insurance Offerings


One very well known Luxury Car manufacturer is Mercedes Benz. They have produced several vehicles that deemed as being expensive to insure.

It includes the

  • The Mercedes AMG S65 Convertible,
  • Also, the Mercedes AMG S63 Convertible,
  • Plus, the Mercedes S550 Convertible, Mercedes AMG C43 Convertible,
  • And the Mercedes Maybach S600, and the Mercedes AMG SL65.

Mercedes Benz has recognized that there can be some challenges for their vehicle buyers. They have partnered up with some Insurance entities. They have done this so they can offer special Insurance package. It is for buyers of Mercedes Benz products. For these drivers, it can be a good starting point to compare some other quotes to.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.