Is insurance higher on luxury cars?

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asked Jun 15, 2020 in Insurance/Registration by Ridona89s (200 points)
Is insurance higher on luxury cars?

1 Answer

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answered Jun 15, 2020 by Shelde (49,390 points)
Yes Auto Insurance will always be higher on Luxury cars than it would be on non luxury cars.

Luxury cars are more expensive than cheaper non luxury cars are and so that means the Luxury car has a higher value to it.

So when your vehicle is worth more then it will cost more money to insure with auto insurance.

If you want cheap insurance then you should not get a Luxury car but if you can afford a Luxury car then you likely can afford the higher cost insurance it takes to insure a luxury car.

Cheaper Insurance is for non Luxury cars and older cars.

If you have an older car or truck that you own with no bank loan or car payment then you can put just Liability insurance on the car or truck or other vehicle.

Then the Liability auto insurance will always be cheaper than full coverage auto insurance.

But with a newer vehicle that you're making car payments on the lender or auto finance company will require full coverage auto insurance on the vehicle until the vehicle is paid off in full.

After you pay off the vehicle and own the vehicle then you can switch to having liability auto insurance on the vehicle.

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