How to find the best luxury car insurance

You’ve found the luxury car of your dreams, but getting it insured could be a bigger challenge than you would expect. Luxury and exotic vehicles have their own insurance needs, and some can only be covered by specialized providers.

Find the best luxury car insurance right now, understand what it can cover and how it differs from standard automatic coverage.

learn more: How does car insurance work? The basics explained.

There is no strict definition of luxury or exotic cars, but they usually have sales prices over $50,000 including high quality components, performance-oriented engineering, and these qualities.

1. Creation and modeling. According to Kelley Blue Book, 24 car manufacturers are widely accepted as luxury brands. The list includes Alfa Romeo, Aston Martin, Bugatti, Ferrari, Lamborghini and Maserati.

2. price. Luxury cars have higher than average selling prices. Cox Automotive reported that the average new car price was $47,462 as of March 2025.

3. Engine size or horsepower. Luxury cars often have larger engines and more horsepower than mainstream cars.

4. Parts and trim quality. Luxury cars are built with high quality parts and interiors, and come standard with upgraded features such as leather interiors.

learn more: How your car manufacturing and model affects car insurance costs

Exotic cars are a subset of the luxury category, distinguished by availability and price. Luxury cars can be mass produced, some are fairly affordable. Exotics are rare and very expensive.

An example is the high-performance Bugatti Veyron with a price tag of $1.9 million. This is the cheapest and most popular in Bugatti’s lineup. Still, only about 450 Beelons have been produced since 1998.

The best insurance for luxury cars is Fully covered car insurancewith high liability limitations and conflicts and comprehensive insurance. The best policy also includes these additional protections and features.

• Agreed value. The insurance company and the car owner together establish the value of the car. If the car is damaged beyond repair, the insurance company will pay the owner the agreed value. This is different from standard car insurance. This uses the actual cash value when reimbursing the owner after the total loss.

• New vehicle replacement options. Some luxury policies offer the option to replace the total vehicle with new vehicles from the same make and model.

• Cash payment options. Private Client Select is an AIG insurance program for NET-heavy customers, allowing luxury vehicle owners the option to make cash payments instead of repairing damaged vehicles at a consensus value of 50% or more.

• Original Equipment Manufacturer (OEM) Parts. Luxury car insurance usually guarantees repairs will be made with OEM parts. This protects the value and safety of your car in high performance situations.

• Custom parts. Luxury Car Policy may allow you to guarantee custom parts and vehicle upgrades. Examples include wheels, custom paint, electronics and non-factory seating.

• Gap insurance. Gap insurance If the balance exceeds the total loss payment, you will pay the car loan.

Comparison: Standard vs. Luxury Car Insurance

The key differences between standard car insurance and luxury car insurance are as follows:

Luxury cars are more expensive to insure than regular cars, as they are more costly to repair or replace them if damaged, total or stolen.

Also, certain vehicles can be more destructive in collisions, which increases the risk of expensive liability claims against you. Luxury cars are designed for high performance. The National Highway Traffic Safety Administration reported that 29% of traffic deaths were involved in speeding in 2022 (latest available data).

Auto insurance companies calculate premiums based in part on the vehicle’s claim history, so when other owners of the model make a claim, it affects what they pay for their car insurance.

learn more: Auto insurance premiums are rising. Here are four reasons and 11 reasons are saved.

Factors that affect the cost of exotic luxury car insurance exceed the value of the car and the cost of repair. Other considerations are:

1. where you live. How much should I pay? Auto insurance may depend on your postal code. Auto insurance is generally more expensive in areas with high traffic, with higher crime rates, and frequent bad weather.

2. How long do you drive? Just take the car out of the garage for special occasions like a car show and you may be eligible Mileage car insurance.

3. Your driving record. If there are no tickets or accidents on the record, the fee will be lower.

4. discount. I’m qualified Auto insurance discount If there are multiple cars insured with the same company, different types of insurance from the same insurance company, and other factors that lead to discounts.

learn more: What is car insurance premium and how is it calculated??

Buying insurance for a luxury car may require more research than buying standard car insurance. Generating quick online quotes from mainstream insurance companies may not be an option. You may be looking for special coverage features like cash settlement options. For example, Progressive does not guarantee vehicles above $150,000.

Work with an insurance broker who specializes in high-end clients or contact a specialized insurance company directly. Pure private clients 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. For two reasons, your limitation of liability should be very high.

1. If you crash on a high-performance vehicle, damage to your property and injuries to others can be huge.

2. As a luxury car owner, you probably have some wealth to protect and can be a target for litigation. You’ll also probably need umbrella insurance to provide additional liability insurance than your car and homeowner policy.

learn more: Here’s how to shop for car insurance

Which car brands are considered luxury?

According to the Kelley Blue Book, these brands are generally accepted as luxury items: Acura, Alfa Romeo, Aston Martin, Audi, Bentley, BMW, Bugatti, Cadillac, Ferrari, Genesis, Infiniti, Jaguar, Lamborghini, Land Rover, Lexus, Lincoln, Lotus, Maserati, Maserati, Mecerati, Maserati, Maserati, Lexus Rolls-Royce, Tesla, and Volvo.

Classic Car Insurance The policy is designed for high value vehicles of certain ages that are not driven daily. Because insurance companies limit how you use your vehicle, fees may be less than full coverage. Usually, cars must be stored in locked climate controlled spaces, and their use must be limited to hobby driving such as car shows and exhibitions.

Amy Danis and Tim Mani edited this article.