You found the luxury car of your dream, but getting insurance may be greater than expected. Luxury and exotic vehicles can have unique insurance needs, while some vehicles can only be covered by professional providers.
To find the best luxury car insurance now, learn what it can cover and how it differs from standard automatic coverage.
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Luxury or exotic cars are not hard-defined, but they usually have high-quality components, performance-oriented engineering and priced at over $50,000, including these qualities:
Made 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 sell for above average. Cox Automotive reports that the average price of new cars is $47,462 as of March 2025.
Engine size or horsepower. Luxury cars usually have a larger engine and more horsepower than mainstream cars.
Parts and trim quality. Luxury cars are built with high-quality parts and interiors, with upgraded features such as leather interiors.
learn more: How the manufacturing and model of a vehicle affects the cost of car insurance
Foreign cars are a subset of the luxury category, varying according to availability and price. Luxury cars can be produced on a large scale, and some can be affordable. Exotics are rare and very expensive.
An example is the high-performance Bugatti Veyron, which costs $1.9 million. This is the cheapest and most popular one in the Bugatti lineup. Nevertheless, only about 450 Virons have been produced since 1998.
The best insurance for luxury cars is full coverage auto insurance with high liability limits, collision and comprehensive insurance. The best policies also have these additional protections and characteristics:
agreed value. Insurers and car owners work together to build the value of cars. If the car cannot be repaired, the insurance company will pay the owner the agreed value. This is different from standard auto insurance, which uses actual cash value when it comes to total losses.
New vehicle replacement options. Some luxury policies offer the option to replace the total car with new vehicles of the same make and model.
Cash settlement options. Private customer choice is an AIG insurance plan for high net worth customers, allowing luxury car owners to choose cash expenses rather than repairing damaged vehicles when 50% or more of the damage is agreed upon.
Original Equipment Manufacturer (OEM) parts. The insurance of a luxury car usually guarantees repairs with OEM parts. This protects the value and safety of the car in high performance situations.
Custom parts. The luxury car policy allows you to ensure custom parts and vehicle upgrades. Examples include wheels, custom paint, electronics, and uninstalled seats in the factory.
Gap insurance. If the balance exceeds the total loss expenditure, GAP insurance will pay the automatic loan.
This is the main difference between standard and luxury car insurance.
Due to damage, total or theft of luxury cars, the insurance costs of luxury cars are more expensive than that of regular vehicles.
Additionally, some cars can be more destructive in collisions, which increases the risk of claims for expensive liability for you, and luxury cars are often designed for high performance. The National Highway Traffic Safety Administration reported that 29% of traffic deaths involved speeding in 2022 (the latest data available).
Auto insurance companies calculate premiums based on the vehicle's claim history section, so when other owners of the model make a claim, it will affect how much you pay for your auto insurance.
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Factors that affect exotic and luxury car insurance costs exceed the value of the car and the cost of repair. Other considerations are:
where you live. The fees you pay for car insurance depend on your postal code. Auto insurance is often more expensive in areas with heavy traffic, high crime rates and frequent and inclement weather.
How much do you drive? If you only take your car out of the garage in your garage, such as a car show, you may be eligible for car insurance per mile.
Your driving record. If there are no tickets or accidents in your record, your price will be lower.
Discount. If you own multiple cars from the same company, different types of insurance from the same insurance company, and other factors that lead to discounts, you can get a discount on car insurance.
learn more: What is car insurance premium and how to calculate it?
It may take more research to buy insurance for a luxury car than to buy standard car insurance. Generating a quick online offer from mainstream insurance companies may not be an option, and you may be looking for special coverage features like cash settlement options. For example, progressive will not secure a vehicle for vehicles worth more than $150,000.
Work with insurance brokers who specialize in high net worth clients or contact professional insurance companies directly. Pure private customers choose from AIG, Grundy and Hagerty to choose from luxury and exotic cars.
Once a policy is selected, the agreed value can be negotiated. Your liability limit may be high for two reasons:
If you cause a crash with a high-performance vehicle, property damage and harm to others can be significant.
As the owner of a luxury car, you probably have some wealth to protect and can be the target of litigation. You may also need an umbrella insurance policy to provide additional liability insurance over your car and homeowner’s policies.
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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 cars of a certain age that are not driven every day. The rates may be less than the full coverage because the insurance company limits how the vehicle is used and stored. Typically, cars must be stored in locked climate-controlled spaces, and their use must be limited to hobby driving, such as car exhibitions and exhibitions.
Amy Danise and Tim Manni edited this article.