How to find the best luxury car insurance
You found the luxury car of your dreams, but getting it insured may be a bigger challenge than expected. Luxury and exotic vehicles can have unique insurance needs, and some can be covered only by specialty providers.
To find the best luxury car insurance now, understand what it can cover and how it differs from standard auto coverage.
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Learn more: How does car insurance work? The basics explained.
There is no hard-and-fast definition of a luxury or exotic car, but they typically feature high-quality components, performance-oriented engineering, and selling prices over $50,000, including these qualities:
Make and model. According to Kelley Blue Book, 24 automakers are widely accepted as luxury brands. The list includes Alfa Romeo, Aston Martin, Bugatti, Ferrari, Lamborghini, and Maserati.
Price. Luxury cars have higher-than-average selling prices. Cox Automotive reported the average new car price is $47,462 as of March 2025.
Engine size or horsepower. Luxury cars often have bigger engines and more horsepower than mainstream autos.
Parts and trim quality. Luxury cars are built with high-quality parts and interiors and come standard with upgraded features, like leather interior.
Learn more: How your vehicle's make and model affect car insurance costs
Exotic cars are a subset of the luxury category, differentiated by availability and price. Luxury cars can be mass-produced, and some are fairly affordable. Exotics are rare and very expensive.
An example is the high-performance Bugatti Veyron, which carries a price tag of $1.9 million. This is the cheapest and most popular of the Bugatti line-up. Still, only about 450 Veyrons have been produced since 1998.
The best insurance for luxury cars is full coverage car insurance, with high liability limits and collision and comprehensive insurance. The best policies also have these extra protections and features:
Agreed value. The insurance company and car owner together establish the car's value. If the car is damaged beyond repair, the insurance company pays the agreed value to the owner. This differs from standard car insurance, which uses actual cash value when reimbursing owners after a total loss.
New vehicle replacement option. Some luxury policies provide the option to replace a totaled car with a new vehicle of the same make and model.
Cash settlement option. Private Client Select, an AIG insurance program for high-net-worth customers, allows luxury car owners the option to take a cash payout instead of having the damaged vehicle repaired when damage is 50% or more of the agreed value.
Original equipment manufacturer (OEM) parts. Insurance for luxury cars usually guarantees repairs will be made with OEM parts. This protects the car's value and safety in high-performance situations.
Custom parts. Luxury car policies may allow you to insure custom parts and vehicle upgrades. Examples include wheels, custom paint, electronics, and seats not installed in the factory.
Gap insurance. Gap insurance pays off an auto loan if the balance exceeds the total loss payout.
Here are the key differences between standard and luxury auto insurance.
Luxury cars are more expensive to insure than regular vehicles due to the high costs to repair or replace them if they're damaged, totaled, or stolen.
Also, certain cars can be more destructive in collisions, which raises the risk of an expensive liability claim against you — and luxury vehicles are often engineered for high performance. The National Highway Traffic Safety Administration reported that 29% of traffic fatalities involved speeding in 2022 (the latest data available).
Car insurance companies calculate premiums partly based on the claims history for the vehicle, so when other owners of your model make claims, it will affect what you pay for auto insurance.
Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save.
The factors that affect the cost of exotic and luxury car insurance go beyond the car's value and repair costs. Other considerations are:
Where you live. How much you pay for car insurance can depend on your ZIP code. Car insurance is generally more expensive in areas with heavy traffic, higher crime rates, and frequent severe weather.
How much you drive. If you only take the car out of the garage for special occasions like car shows, you may qualify for pay-per-mile car insurance.
Your driving record. You will have lower rates if you have no tickets or accidents on your record.
Discounts. You can qualify for car insurance discounts if you have multiple cars insured with the same company, different types of insurance from the same insurer, and other factors that lead to discounts.
Learn more: What is a car insurance premium, and how is it calculated?
Buying insurance for a luxury car can require more research than buying standard auto insurance. Generating quick online quotes from mainstream insurers may not be an option, and you may be looking for special coverage features like a cash settlement option. For example, Progressive does not insure vehicles worth over $150,000.
Work with an insurance broker who specializes in high-net-worth clients, or contact specialty insurers directly. PURE, Private Client Select from AIG, Grundy, and Hagerty have coverage options for luxury and exotic cars.
Once you have chosen a policy, you can negotiate the agreed value. Your liability limits should likely be quite high, for two reasons:
If you cause a crash with a high-performance vehicle, the damage to property and injuries to others can be hefty.
As a luxury car owner, you presumably have some wealth to protect and can be a target for lawsuits. You probably also need an umbrella insurance policy to provide additional liability insurance above your auto and homeowners policies.
Learn more: Here's how to shop for car insurance
According to Kelley Blue Book, these brands are generally accepted as luxury makes: Acura, Alfa Romeo, Aston Martin, Audi, Bentley, BMW, Bugatti, Cadillac, Ferrari, Genesis, Infiniti, Jaguar, Lamborghini, Land Rover, Lexus, Lincoln, Lotus, Maserati, McLaren, Mercedes-Benz, Porsche, Rolls-Royce, Tesla, and Volvo.
Classic car insurance policies are designed for high-value vehicles of a certain age that are not driven daily. The rates may be less than full coverage because the insurance company restricts how the vehicle is used and stored. Typically, the car must be stored in a locked, climate-controlled space, and its use must be limited to hobby driving, such as car shows and exhibitions.
Amy Danise and Tim Manni edited this article.
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