A luxury car is a vehicle that goes above and beyond to provide comfort and style to its driver. Mercedes-Benz, Porsche, Lexus, and Audi are some of the brand-name luxury cars available on the market. These types of vehicles surpass regular ones with their design, performance, and amenities.

Most car insurance companies cover the basic needs of car owners, but luxury cars require a better kind of coverage. Luxury car insurance is a bit more expensive — with good reason. Luxury of any kind costs more than the norm. It makes sense that this kind of insurance would be pricier.

Let’s walk through some of the reasons why these automobiles need a special kind of insurance in the first place. We’ll also look at the different aspects of luxury car insurance.

3 Reasons Luxury Cars Need Special Insurance

Luxury cars are considered specialty cars. They drive faster, they cost more for repairs, and they are the targets of car thieves and people who vandalize. Below will be detailed explanations of each reason. 

#1 – Luxury Cars Are Faster Than Regular Cars

Your typical vehicle can go up to 160 mph. A luxury car, however, can accelerate way beyond that. This kind of automobile can go up to 200 mph. It can also go from zero to 60 mph in less time than a regular car, which is the main reason why it needs a special kind of insurance.


When you can accelerate that fast, you are more likely to get into accidents, endangering yourself and others in the process. The faster the vehicle, the more diligent you have to be on the road. 


(Disclaimer: This walkthrough is not encouraging anyone to drive beyond the speed limit. Please follow road signs and obey the law.)

#2 – Luxury Vehicles Cost More for Repairs and Maintenance

Sometimes automobiles need repairs. With luxury cars, those costs can be quite pricey. Because this type of vehicle is considered to be a specialty one, it requires unique parts and delicate repairs.


Maintaining a luxury car can lighten your wallet without a doubt. For example, BMWs tend to cost $10,000 or more to maintain over a 10-year period. 


There are ways to prevent major car repairs and save money, but it is difficult with a luxury automobile. You should plan before purchasing a vehicle like this and think through how to save as much money as possible. It also might be a good idea to store your car in a safe place. 

#3 – Luxury Automobiles Are More Susceptible to Theft and Vandalism

Let’s face it. Sometimes, people steal and vandalize. Store your vehicle in a safe place when it’s not being used. Don’t have your automobile on the side of the curb or in your driveway. Keep it in a storage facility or your garage. 


You need to be cautious. You wouldn’t leave money lying around, so don’t do that to your luxury car. Protect your investment and keep it out of harm’s way. Should your car get vandalized, don’t hesitate to call the police.


Luxury cars are powerful vehicles with a lot of great aspects to them. With all that power, make sure that you have the right coverage to protect it. 

the interior of a luxury car, it's also red

What does luxury car insurance include?

Luxury car insurance has many facets to it. These facets all cost something, but they’re needed. There’s collision, comprehensive, liability, personal injury protection, gap, and new car replacement coverage. Each of these protects you and your vehicle in different and vital ways. 

Collision Coverage

This kind of coverage protects your luxury car from damage done to it by other cars or fixtures such as signs or lamp posts. It’s good to have in case of an accident. Collision covers all damages even if the accident was your fault. 


You do not want to be in a place where you have to pay for an accident out of pocket. Make sure you have collision coverage.

Comprehensive Coverage

Comprehensive covers damages done to your automobiles like theft, vandalism, and natural disasters. Natural disasters consist of occurrences such as floods, hail, and fallen tree limbs. As stated above, find a safe place to store your car. You don’t want it to get damaged.

Liability Coverage

When you’re at fault for an accident or damage to another person’s vehicle, liability is necessary to cover all of your bases. This covers you from any medical or property damages that were accrued by the other party.


As stated above, you do not want to be in a place where you have to pay for an accident out of your own money. Be wise and prepare for the worst now so that you don’t have to worry about it later. 

Personal Injury Protection Coverage

Accidents happen even when you’re a diligent driver. Personal injury protection makes sure that your medical expenses are taken care of in the case of an accident. It also covers the medical expenses of those that were in the car with you, which is very useful.  

Gap Coverage 

This kind of coverage keeps you from having to pay for the balance of the luxury vehicle if you still owe on it. Normally, insurance would only cover what’s needed to replace the automobile. With gap coverage, you don’t have to worry about what’s owed on the car. This coverage takes a lot of pressure off of you.

New Car Replacement Coverage

If you completely total your luxury car, new car replacement coverage will cover the costs of getting a new car with the same make and model. This is great because you don’t have to worry about replacing the car on your own.

Luxury car insurance is a better kind of coverage than regular car insurance. You pay more for it, but you safeguard yourself and your vehicle in the process. If you’re interested in getting this, check with your insurance provider to see how they go about insuring luxury automobiles. 


Peyton Leonard writes and researches for the auto insurance comparison site, AutoInsuranceEZ.com. Peyton is passionate about making sure drivers have the right insurance for their cars.