You’re eyeing your neighbor’s Porsche or Maserati and getting a bit of FOMO. But you imagine the insurance rates for those cars must be through the roof…which makes you wonder, What are the most expensive cars to insure?
Most auto owners prefer cheap car insurance—because, duh—but you might not want to drive a Dodge to get it. (Apologies to our Dodge lovers out there. Dodge is cool, too.)
So before you put yourself on the waiting list for a Tesla Model X, find out more about car insurance rates and the most expensive cars to insure.
How do car insurance companies price auto insurance?
Insurance companies base your car insurance rates on the risk you represent, as well as your car’s age, make, and model, which optional coverages you pick, and how much you’re willing to pay towards any claims (i.e., the deductible you pick on some of your coverages when you get car insurance quotes).
There’s a ton of different information that influences an insurance company when they develop your price. Here are some of the most important factors:
Make, model, and year of your car
Drive a luxury vehicle? Expect to pay more for insurance. Luxury, high-performance vehicles cost more to insure because they’ll have higher repair costs. If you’re in an accident, it costs the insurer more to get your car fixed.
Driving record
Unsurprisingly, if you have a spotty driving record—with lots of accidents, speeding tickets, and maybe even a property damage claim in the past—you’ll pay more for insurance.
Insurance score
Your insurance score attempts to predict how likely you are to make a claim—and to then adjust your policy price accordingly. Different states have different rules and regulations regarding how an insurance score can be used for rating and underwriting, if at all.
An insurance score has several similarities to a credit score, but it’s a different beast. It’s generally used in the context of your homeowners or car insurance policy, and it takes an array of financial metrics into account, such as:
- Any outstanding debt you currently have
- Your general payment history
- The length of your credit history
- Applications for new credit cards, loans, or mortgages
- Number and types of credit accounts
It’s pretty obvious why your insurer would want to anticipate the likelihood of you submitting insurance claims. Paying out claims can get expensive for your insurer—it’s in their interest to price your policy based on your likelihood to file a claim. Your insurance score can give them a taste of what it would be like to insure you.
That said, a lot of factors go into an insurance company’s decision-making process—and a low insurance score, on its own, wouldn’t be the reason you could potentially be denied coverage.
Insurance coverage
The type of coverage you select also impacts car insurance costs. If you pick full coverage, the insurer might have to pay out more if you file a claim. Similarly, selecting a high deductible—what you’d pay towards an accident’s costs before the insurance company had to pay out—usually lowers your rates.
What types of vehicles are more expensive to insure?
If you’re looking for the cheapest cars to insure, you might want to think carefully before purchasing the following types of vehicles. For various reasons, insurance for these cars will likely be pricey.
Sports cars
Driving a car that’s built for speed tempts many drivers to, well, speed. Sports car drivers are also typically younger than other drivers, and engage in riskier behavior, so insurance companies put these vehicles in the higher-risk category.
Luxury cars
Cars with high-end safety and performance features, and lavish interiors, cost more to repair. And, if the car gets totaled in an accident, it costs more to replace. You’ll pay more for auto insurance if you drive a luxury vehicle such as a BMW or Mercedes Benz – it’s just how car insurance works.
Electric vehicles
Depending on the type of electric vehicle you drive, replacing the battery after an accident could be very expensive.
SUVs
Because Sport Utility Vehicles, or SUVs, can cost more in the first place, your annual insurance premiums for an SUV may be higher than it would be for a similar sedan.
What are the most expensive cars to insure?
Once you know the underlying methodology of car insurance quotes, the list of most expensive cars to ensure isn’t that surprising.
And so—drumroll, please!—the most expensive cars to insure, based on the national average of insurance coverage, are:
- Maserati Quattroporte: $5,024 a year (a luxury car)
- Audi R8: $4,568 a year (a luxury sports car)
- BMW i8: $4,372 a year (a hybrid sports car)
- Mercedes-AMG GT: $4,130 a year (luxury vehicle)
- Nissan GT-R: $4,064 a year (luxury sports car)
- Maserati Ghibli: $4,018 a year (luxury vehicle)
- Mercedes-Benz S-Class: $3,742 a year (luxury car)
- Porsche 911: $3,734 a year (luxury sports car)
- Tesla Model S: $3,620 a year (luxury electric vehicle)
- BMW 7-Series: $3,522 a year (luxury car)
The average rate you’ll pay for the cars on this list is sometimes 200% more than the national average for other vehicles.
Let’s be honest, though—if you can afford a car with a price tag over $100,000, you may not care about lowering your insurance premiums. The base model of the Maserati Quattroporte starts at $96,000, the Tesla Model X at $104,990, and the Nissan GT-R is $113,540.
Then again, everybody likes to save money, so here are a few tips that can help to lower car insurance rates.
How can you lower your auto insurance rates?
Other than selling your Maserati Quattroporte and trading it in for a Honda CR-V (one of the cheapest cars to insure), here’s how to get cheaper car insurance.
- Pick a higher deductible. Raising your collision and comprehensive deductibles means that, if you were in an accident, your insurance provider wouldn’t have to pay as much towards its costs. Because of this, a higher deductible can mean lower insurance premiums.
- Get discounts. When you get your Lemonade Car policy, we’ll automatically tell you what discounts you qualify for. These can include bundling with a Lemonade Homeowners, Renters, or Pet policy, getting your policy early, driving with the Lemonade app, and more.
- Buy another car. Okay, we’re kind of joking, but if the total ownership cost of your sports car has become unaffordable, you could trade it in for one of the least expensive cars on the market: a Subaru Outback, Jeep Wrangler, Honda CR-V, or Chevrolet Equinox. Just don’t expect the same driving experience…
- Shop around. It’s free to get auto insurance quotes. If your insurance policy is up for renewal, take the time to get a few quotes and see how they stack up.
Before we drive off…
As the saying goes: You get what you pay for.
Ultimately, the best car insurance quote for your vehicle isn’t necessarily cheap car insurance. It’s the insurance policy that best protects your car, with the coverage you need and a deductible you can afford.
We’re a little biased, but we happen to think that Lemonade Car is the perfect option for many drivers—especially those whose luxury tastes tend toward the environment friendly side. You can get a Lemonade Car quote in just a few minutes (Maserati not necessary).
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
