Luxury Car Insurance

Luxury car insurance is expensive to be sure, but most of the lucky ones among us who can afford luxury cars can also afford the insurance.

Take Jay Leno, for instance. The “car insurance” he uses for his 130 restored classic automobiles is a garage that he had custom built just to house them, and a team of four full time mechanics, personally hired by Jay, who is not so bad with a wrench himself, by the way. Jay drives a different car to work each day, to keep those purring engines in impeccable working condition. Okay, to show off, but whatever. Jay Leno’s car collection is the envy of classic auto collectors worldwide. Jay is a self insured driver.

Other wealthy car collectors include Jerry Seinfeld, who prefers only Porsches, 50 Cent, who favors Ferraris, Micheal Jordan, who enjoys exotic sports cars, Shaquille O’Neal, who likes anything custom made for his seven-foot-one-inch frame, Wycliff Jean, who sports a massive garage of at least 37 customized cars, of which his favorite one is the 1957 Cadillac ElDorado, and Ralph Lauren, who color coordinates his couture collection of classic European cars. He even gets inspiration for his fashion designs from the vehicles in his enviable garage. For most wealthy American car collectors like these, it’s a matter of pride to keep their vehicles in perfect, like-new condition.

These folks definitely need luxury car insurance, in one form or another.

This page answers seven frequently asked questions about the design details of luxury vehicles and custom built cars, as well as the types and amounts of insurance needed to cover them, and some important maintenance tips. Learn about umbrella insurance, self insurance, the world’s coolest dream cars, and the people who have made those dreams come true. Read it and weep. Turn green with envy! Or maybe just start saving money for your very own dream car.

These FAQs illustrate all the different ways in which famous millionaires and avid car collectors can insure their elite vehicles, and also how you can insure your dream car when you don’t necessarily have money to burn.

What are the most expensive cars to insure?

Some of the most expensive cars to insure are vehicles in very low supply and very high demand. Limited editions cost more to insure, because the parts are hard to replace. In some cases, replacement parts have to be custom built. For collectible cars, premiums depend partly on how many cars of a certain model were produced.

Also expensive to insure are sporty vehicles that are designed for high speeds. Owners of vehicles like sports cars and race cars are involved in more accidents than owners of other vehicles. Even if the vehicle is not speeding, owners of fast cars seem more likely to zip in and out of traffic, and somehow seem to take more chances on the road.

In terms of personal vehicles, here are the 10 most expensive cars to insure (starting with the highest priced premium), according to a 2010 study from the Insurance Institute for Highway Safety (IIHS):

  1. Subaru Impreza WRX 4WD
  2. Scion tC
  3. Hyundai Tiburon
  4. Mercedes CLS class 4-door
  5. Suzuki Forenza
  6. Honda Civic Si
  7. Dodge Charger
  8. Nissan 350Z
  9. Chevrolet Cobalt
  10. Suzuki Reno

Here are the 10 most expensive cars to insure in 2016. As you can see, the MSRP (Manufacturer’s Suggested Retail Price) is not, all by itself, a good indication of the car insurance premium cost.

Make / ModelMSRPAvg Annual Premium
Dodge Viper GT $87,895$4,048
Mercedes Benz SL65 AMG$219,850$3,797
Mercedes Benz S600$170,750$3,539
Mercedes Benz S63 AMG$144,700$3,513
Porsche Panamera S Executive$201,000$3,484
Nissan GTR $101,770$3,476
BMW M6 Gran Coupe$130,000$3,309
Land Rover Range Rover SV Autobiography Black LWB$199,950$3,245
Audi RS7 Quattro Prestige $118,480$3,229
Porsche 911 Carrera GT3 RS$84,300$3,212

According to, the 10 most expensive cars to insure (from highest to lowest premium rates) are the Nissan GT-R, the BMW M6, the Mercedes Benz CL550 4Matic, the Mercedes SLS AMG, the Porsche Panamera Turbo S, the Audi R8 5.2 Spyder Quattro, the Mercedes G63 AMG, the Audi A8L W12, the Jaguar XKR Supercharged, and the Mercedes GL63 AMG.

It seems that determining which vehicles are the most expensive cars to insure is not an exact science. One problem is that each auto insurance analyst uses a different set of demographic parameters.

In any case, you may notice that none of the above cars are the priciest vehicles on the market. The McLaren P1, for instance, with a price tag of $1,155,000, is the most expensive brand name vehicle in America. Only 375 of these cars exist. The McLaren P1 has a top speed of 217 miles per hour.

The second most expensive car in America is the Porsche 918 Spyder, priced at $929,995. Only 918 copies of this car are manufactured in any given year. This car is the world’s quickest, accelerating from zero to 60 miles an hour in 2.2 seconds. The next three most expensive cars in America are the Lamborghini Aventador, the Rolls Royce Phantom, and the Ferrari F12berlinetta. Oddly, none of these five cars made any of the most-expensive-to-insure lists.

What determines luxury car insurance premiums for elite cars?

One factor in determining luxury car insurance premiums is the MSRP of the vehicle. However, the increasing price of the vehicle does not exactly correlate with the increase in luxury car insurance premium rates. This is because there are other factors also involved.

For instance, the availability of replacement parts is also an important consideration. Some replacement parts are scarce. With many exotic and hand crafted cars, replacement parts may have to be custom designed.

Another factor affecting luxury car insurance rates is the technological design of the vehicle. Cars that are built to go fast (such as the Porsche) will probably cost more to insure than a family car design.

The driver’s zip code would not be much of a factor determining luxury car insurance premiums, because elite cars are typically driven in wealthy zip codes. If you tried to insure a McLaren P1 somewhere in Detroit, you’d be likely to pay through the nose for luxury car insurance.

What are some good insurance options for luxury, classic, and exotic cars?

Surprisingly, celebrities and other wealthy car owners tend to pay less for luxury car insurance than lower income drivers pay for ordinary car insurance. In fact, the Consumer Federation of America has reported that lower income people tend to pay more for car insurance than rich people do. This may be partly because 1) rich people live in better neighborhoods, 2) rich people are much more likely to take good care of their cars and house them in custom garages, and 3) the “top one percent” can easily afford to self insure their vehicles, and often insist on doing so.

However, many high income individuals insure their vehicles with major auto insurance companies, to protect themselves against being sued by other drivers. Major luxury car insurance carriers that cater to a wealthy crowd include Allstate Insurance, Encompass Insurance, Liberty Mutual, Nationwide Group, Progressive Insurance, State Farm Insurance, The Hartford, Travelers Insurance, and 21st Century Insurance, to name only a few.

Some wealthy clients prefer private luxury car insurance companies such as Chubb, Nationwide Private Client, and the Fireman’s Fund, among others. These insurers are also available to people who have excellent credit. Benefits of private insurers include an “agreed value” for a vehicle (as opposed to the “market value”), guaranteed original equipment manufacturer parts (as opposed to aftermarket parts), your choice of repair shop (as opposed to a shop chosen by your insurance carrier), higher coverage limits (as opposed to state-mandated minimums), and several other perks not available to people of more ordinary means.

Some serious classic car collectors choose the Classic Auto Insurance Company. This luxury car insurance agency has been protecting classic cars since 1992. Choose from Lamborghini insurance, Porsche insurance, Ferrari insurance, and more. The Classic Auto Insurance Company insures exotic cars, muscle cars, vintage cars, hot rods, prototypes, and other rare automotive finds. Visit for an instant quote.

What is umbrella insurance?

An Umbrella insurance policy is a policy designed to fill in the gaps not covered by underlying insurance policies. After other policies have payed up to their limits, the umbrella policy takes over, and covers the rest of the cost.

Umbrella policies are popular for people of high net worth, such as those who own both a home and at least one car, or those who have a lot of money in the bank or other valuable assets.  A typical umbrella policy is normally attached to a policyholder’s home and luxury car insurance. An Umbrella insurance policy also covers events not covered under home or auto policies, such as libel, slander, and false arrest.

Umbrella policies were first developed in 1949, and became quite popular in the 1960s. As of 2008, twelve percent of State Farm’s customers had Umbrella policies.

What is self insurance?

Self insurance is basically money that is set aside to cover the costs of vehicle damage and medical expenses in the event of a traffic accident. This is a popular form of luxury car insurance among the wealthy, and can save a lot on car insurance premiums. Basically, the more cars a person owns, the smarter it is to self insure them. Vehicles in extensive prized car collections carry a lower risk than vehicles that are used out of necessity. Aside from the sheer pride of ownership that leads to better maintenance, a person who owns numerous working vehicles will likely drive each one of them less often, and will likely try to avoid busy streets.

However, there is still the danger of being sued by other drivers, so other types of luxury car insurance may also be necessary.

What about middle income Americans who save enough money to buy their dream cars but can’t afford the insurance?

One interesting article from suggests that you might as well actually be a millionaire instead of just looking like one. All you need to do is let go of the pride of owning a status symbol automobile. For upper-middle class people who have enough money to be comfortable but don’t have money growing on trees, lowering your car insurance premium rates is probably the best way to save even more money. Getting an ordinary car is cheaper to buy, cheaper to insure, still takes you anywhere you want to go, and lets you save the money you would have spent on a more expensive car and the luxury car insurance that goes with it.

That is, of course, unless you are an automotive fanatic! Maybe owning your dream car means everything to you. In that case, you need to save at least 25 percent more than the price of the car you want to buy. Just as a homeowner has to pay not only for the home itself, but for property taxes, homeowners insurance, and housekeeping services, a car owner must pay for car insurance, repairs, and maintenance, not to mention fuel and parking fees.

Here are some tips for lowering the auto insurance premium costs on your must-have dream car:

  1. Keep your mileage down! If you don’t drive your dream car often, you may be eligible for a low mileage discount.
  2. Own a second (cheaper) car. If your fancy car can be listed as a secondary vehicle on a car insurance policy, this can save you money on premium rates. Don’t be embarrassed! Just put a bumper sticker on your cheaper car that says “My Other Car’s a Lamborghini.”
  3. If you choose not to own a second car, perhaps you can piggyback on the car insurance policy of a family member.
  4. Move to a favorable zip code in Maine, Ohio, or North Carolina, where car insurance premium rates are the cheapest in the nation.
  5. Pay your premiums up front and in full, to score an extra policy discount. This is just one reason why someone who wants his or her dream car should save at least 25 percent more than the price of the car.

What are some car maintenance tips for owners of elite cars?

It takes a lot of attention to detail and a great deal of mechanical know-how to maintain an exotic or luxury car. Work and skill are necessary components in keeping your elite vehicle in pristine condition. It is important to preserve you car’s performance, style, and comfort with regular maintenance work.

Here are some useful maintenance tips that will save you some of the headaches of luxury car insurance, and guarantee the longevity of your vehicle:

  1. Use Leather Conditioner. Most expensive vehicles have leather upholstery. Regularly using leather conditioner will keep the leather looking new, by preventing it from drying and discoloring under the sun’s constant ultraviolet rays.
  2. Have the car’s interior steam cleaned every six months.
  3. Wash and wax the car regularly, to keep it looking like it just rolled off the lot.
  4. Use Diamond Gloss Protectant. The glossy finish on your car’s exterior will fade over time from weather damage. Use Diamond Gloss and coat the polish with sealant. This will restore the lustrous, like-new shine to your prized vehicle.
  5. Get scratches and dents repaired as soon as possible.
  6. Change the oil and filters regularly. This will keep your engine in prime condition.
  7. If you hear any strange noises coming from the engine, stop the car at the nearest safe place and have it serviced immediately.
  8. Check the engine coolant once a month, and change it every year.
  9. Keep the moving parts of your vehicle well greased, to protect them from friction damage.
  10. Remain aware of the air pressure in your tires, as well as the wear and tear on the tire treads. Rotate and change the tires as needed.
  11. Always try your best to use tires that are designed for your particular luxury car model. Foreign tires are more likely to cause damage.
  12. Check your brakes and safety features at regular intervals. You just never know when those will come in handy.
  13. Start the engine and drive your dream car(s) at least two or three times a month. This will keep the engine running smoothly, or alert you of any problems with the ride.
  14. Slow down when crossing speed bumps, and avoid sudden braking.
  15. Always park your dream car inside a garage. If you do not have a custom built garage, you might also consider covering the vehicle with a tarp for added protection.

For superb luxury car maintenance, passion is key! You have to really care about your car. Notice every detail of your vehicle. Keep your perfect dream car looking shiny and new at all times.

Got a passion for automotive fashion? Save your pennies and buy your ultimate dream car!