Last Updated on December 15, 2025

Luxury cars are expensive to buy and expensive to repair — and that often makes them expensive to insure.

But “luxury” doesn’t automatically mean “sky-high premiums.” Some luxury brands and models are surprisingly affordable to insure, especially entry-level sedans and small SUVs with strong safety tech and widely available replacement parts.

Below you’ll find (1) what luxury car insurance typically costs, (2) luxury models and brands that often come in on the lower end, and (3) practical ways to keep your premium down.

Key Takeaways

• Luxury car insurance is usually higher because luxury vehicles cost more to repair and replace — but some entry-level luxury models are surprisingly affordable to insure.
• Trim level matters: sport/performance versions and expensive tech packages can raise claim costs and increase premiums even within the same model line.
• Some luxury brands (often Acura, Volvo, Infiniti, Lincoln, and certain Lexus models) tend to come in cheaper than ultra-high-end or exotic brands.
• The best way to find the “cheapest luxury car to insure” in your area is to quote the exact year/trim (or VIN) with multiple insurers before you buy.

How Much Does Luxury Car Insurance Cost?

National estimates vary by data source and coverage assumptions, but recent research generally puts full coverage auto insurance in the $2,500–$2,900 per year range. Luxury vehicles often land higher than that because they’re costlier to replace and more expensive to repair.

Why luxury cars usually cost more to insure:

• Higher vehicle value: In a total loss insurance claim, insurers pay the vehicle’s actual cash value (ACV). Higher values generally mean higher potential payouts.
• Higher repair costs: Luxury vehicles often have pricier parts and more labor-intensive repairs (and many modern cars require sensor calibration after repairs). Something routine on a normal car can cost more on a luxury model — like replacing struts, bumpers, headlights, or advanced driver-assist components.
• More expensive claims when someone hits you: Even if you aren’t at fault, luxury cars tend to generate larger claim payouts. (This works both ways — hitting an expensive car can also mean a larger liability claim.)

If you drive a high-end vehicle, you may also want to review whether you need special coverage for a high-end or luxury vehicle (like higher liability limits, gap coverage if financed, or specialty coverage for modifications).

Top 10 Luxury Vehicles That Are Often Cheaper to Insure

Insurance costs vary by state, driver, trim, and model year. The lists below are best used as a starting point for shopping — always quote the exact year/trim (or VIN) before you buy.

A 2021 “most affordable” list from Mercury Insurance (luxury sedans)

Mercury Insurance analyzed 2021 model-year luxury vehicles and published a “most affordable to insure” list. Their top 10 luxury sedans included:

1. Mercedes A220 / A250
2. Audi A3 / S3
3. Acura ILX
4. Acura TLX
5. Lexus IS / ES
6. BMW i3
7. Infiniti Q50 / Q60
8. BMW 330 / M340
9. Audi S4
10. Mercedes CLA 250 / C300

You can read Mercury’s full breakdown here: Cheapest Luxury Vehicles to Insure, According to Mercury Insurance.

Luxury SUVs that can price well

Luxury SUVs are often pricier to insure than entry-level luxury sedans, but some models can still come in competitively — especially those with strong safety features and mainstream repair networks. In that same Mercury Insurance analysis, some of the more affordable luxury SUVs included models like:

• Lincoln Nautilus
• Acura RDX / MDX
• Mercedes GLC
• Infiniti QX50 / QX60
• Lexus NX / RX / UX

Pro tip: Trim matters. Sport trims, bigger wheels, turbo upgrades, and expensive tech packages can raise repair costs — and that can raise insurance rates too.

Cheapest Luxury Brands to Insure

While model-level pricing is always more accurate than brand-level averages, some luxury brands tend to come in cheaper overall. A recent analysis (shared by Quartz) found the lowest-cost luxury brands included:

1. Acura
2. Volvo
3. Alfa Romeo
4. Infiniti
5. Lincoln

Even within the same brand, you can see huge pricing differences by model (and even by trim). Always compare quotes before you commit.

Most Expensive Luxury Brands and Models to Insure

At the other end of the spectrum, exotic and ultra-high-performance brands are often among the most expensive to insure because repairs are costly, parts are specialized, and claim payouts can be enormous.

Luxury brands that are often pricey to insure include:

1. Rolls-Royce
2. Lamborghini
3. Bentley
4. McLaren
5. Maserati
6. Bugatti
7. Ferrari

And it isn’t just “exotics.” High-performance trims (and certain high-theft vehicles) can also be expensive to insure — even if they’re from a more mainstream luxury brand.

Why Luxury Car Insurance Costs More

There are obvious reasons luxury insurance is higher — like higher MSRPs and costlier repairs.

There are also less obvious reasons — like repair complexity and how insurers price risk for certain vehicle types.

Higher replacement cost: In a total loss, your insurer pays ACV (not MSRP), but luxury vehicles can still represent a higher payout risk than a basic commuter car.

Higher repair costs: Luxury parts, specialty labor, and modern tech (cameras, radar, lidar, sensors) can raise claim costs.

Insurance company pricing differences: Many major insurers cover luxury cars just fine (including GEICO and State Farm), but premiums can vary a lot by company. Shopping around matters more than most people think.

Other Factors That Impact Luxury Car Insurance Rates

Two people can insure the same luxury car and pay totally different prices. Insurers heavily weigh:

• Safety ratings: Safer cars can be cheaper to insure. (More here: how safety ratings impact insurance rates.)
• Model & trim: Sport trims and performance engines can raise rates due to higher claim severity and pricier parts.
• Driving history: Tickets, accidents, and claims are major pricing drivers.
• State and local costs: State laws and local claim costs matter a lot.
• ZIP code: Where you park your car impacts theft/vandalism risk. (Related: ZIP codes with the cheapest auto insurance rates.)
• Discounts: Bundling, telematics, and low mileage discounts can all reduce premiums.
• Age & value of the vehicle: Newer and more valuable vehicles are often more expensive to insure. (If your “luxury car” is a classic, different rules may apply.)

FAQs on Cheap Luxury Car Insurance

Final Word on Cheap Luxury Cars to Insure

Luxury cars are often more expensive to insure — but you can absolutely own a luxury vehicle without paying a fortune.

Start by focusing on brands that tend to be cheaper overall (like Acura, Volvo, Infiniti, Lincoln, and some Lexus models), avoid expensive performance trims when possible, and always compare quotes with multiple insurers before you buy.

Want the best deal? Get quotes using the exact year/trim (or VIN) and compare coverage apples-to-apples — especially liability limits and deductibles.