Have you ever considered why luxury car insurance is more expensive compared to regular cars? Of course, luxury cars are more expensive, but the insured car’s price is only one of the reasons. Another reason for the costly insurance rate is the high probability of theft and the fact that it may be very hard to replace. And because of the excellent horsepower luxury cars have, which increases the chance of accidents, and let’s not forget the regular factors like age, location, credit score, etc., that is the base of your insurance rate.
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Luxury car insurance cost
As you noticed, luxury cars cost more to insure than a typical vehicle’s coverage. The average luxury car insurance rate is $2,989 per year, or $250 a month. A number of factors are considered when calculating a luxury car premium, such as the expensive repair costs and the high chance of theft. Also, factors such as where you live, how you store and drive your car, and even your credit score impact your insurance rates.
Best insurance companies for luxury cars
1. Progressive
The Progressive Corporation is an American-based insurance company founded in 1937 and is headquartered in Mayfield Village, Ohio. Progressive is the third-largest insurance company and the Number1 commercial auto insurer in the United States. This insurance company covers:
• Boats
• RVs
• PWC
• Trailers
• Motorcycles
• Commercial vehicles
Also:
• Home
• Life
• Pet
• And more
Progressive has expanded all the way internationally over to Australia.
2. Liberty Mutual
Liberty Mutual Group is an American-based company founded in 1912, and its headquarter is located at 175 Berkeley Street. Liberty mutual, with over 100 years of service, provides insurance around the globe, and it’s the third-largest property and casualty insurer in the United States. Liberty Mutual Group owns local insurance companies in Ireland, Colombia, Argentina, China (including Hong Kong), Brazil, Chile, Venezuela, Ecuador, India, Thailand, the United Kingdom, Malaysia, Poland, Portugal, Singapore, Spain, Turkey, and Vietnam.
3. Nationwide
Nationwide Mutual Insurance Company is an excellent option for your luxury cars; it was founded in 1926 and is headquartered in Columbus, OH. This company also operates in the following regions.
• Scottsdale, AZ
• Des Moines, IA
• San Antonio, TX
• Gainesville, FL
• Raleigh, NC
• Sacramento, C
• Westerville, OH
Nationwide company can be a little more expensive than other companies, but it offers a variety of discounts to help its customers lower their premiums. Plus, it is well-rated with four stars. This company provides a lot of different and unique policies. Nationwide employed approximately 25,391 people.
4. Allstate
Allstate Insurance is an American-based insurance company founded in 1931. Its headquarters are located in Northfield Township, Illinois, near Northbrook. Allstate even has insurance operations in Canada. Some standard types of car insurance that Allstate offers include:
• Collision coverage
• Medical payments
• Personal injury protection
• Comprehensive insurance
• Uninsured motorist coverage
• Underinsured motorist coverage
• Property damage and bodily injury liability auto insurance
J.D. Power Auto Insurance Study showed that Allstate has the highest customer satisfaction. Besides auto insurance, customers can also purchase other types of insurance from Allstate, such as renters insurance, homeowners insurance, and life insurance.
5. Travelers
Travelers insurance offers good policies. It is a stable and established provider for auto insurance needs. Travelers sold its first policy in 1864, and it has been active ever since. It is still operating classically and marketing its policies through agents because they believe in in-person interaction, making it an attractive choice for people who think technology has made people forget about in-person deals. Traveler’s company has offices in every U.S. state, in the United Kingdom, Canada, Ireland, Singapore, China, and Brazil.
What is the best luxury car insurance company?
The best car insurance company for your luxury car heavily depends on you and your car’s specific needs. The company that can be best for you will provide you with the coverages that protect you and your car, discounts, and features that you are looking for. Don’t forget to shop around for the best luxury car insurance.
What coverages do luxury cars need?
1. Liability coverage:
Liability covers other people’s vehicle repairs and medical bills after accidents that you were at fault. The costs of repairing any property damaged and the medical bills resulting from an accident are covered. Almost all states require a minimum amount of liability insurance, but luxury cars are more expensive than an everyday car, so carrying a higher liability limit can be very beneficial financially if you had an at-fault accident.
2. Collision coverage:
Collision coverage will cover damages done to your own vehicle if you’re involved in an accident with another car object, or you get into a single-car accident. If your car is totaled (totaled means the cost of repairs exceeds the value of the vehicle) in an accident, collision coverage will pay the value of your car.
3. Comprehensive coverage:
This insurance will cover the expenses of damages to your own vehicle that is caused by something other than an accident, like vandalism, broken vehicle glass, theft, damages caused by a natural disaster, and damage caused by striking an animal. You can install anti-theft and tracking devices to make comprehensive coverage more affordable, but still, this coverage can be costly. Comprehensive is not necessary at all times, especially if your car is replaceable. It’s good to know that comprehensive is sometimes referred to as “other-than-collision coverage.”
4. Medical payments coverage:
Medical Payments Coverage, commonly known as MedPay, covers the accident-related medical expenses for you, your passengers, your household members, and other policyholders regardless of who is at fault. Personal injury protection may be mandatory if you live in a no-fault state. In that case, you won’t need medical payments coverage because this coverage is more limited.
5. New Car Replacement Coverage:
If your luxury car is totaled, with this coverage, the cost of a new model of the exact vehicle will be given to you, not its depreciated value. You should know that you can add this coverage only if you have full coverage car insurance.
6. Gap insurance:
Gap insurance is excellent if you are financing or leasing a luxury car, and it covers the difference between the amount your insurer pays out if your vehicle is stolen or considered as totaled and the price you paid for it. For better comprehension, we’re going to explain with an example: reckon you loaned a brand-new car for $30,000, and you still owe $25,000 on your auto loan when your vehicle is totaled in a covered collision. Your collision coverage will pay your lender the exact depreciated value of the totaled car; let’s say it’s worth $19,000. If you don’t have gap insurance on your policy, you yourself have to pay $6,000 out of your pocket to settle the auto loan on the totaled car. That means you paid $11,000 and have no car; however, your insurance provider will pay the $6,000 for you if you have gap insurance.
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