Makes me wonder if insurers just figure that anyone willing to pay for an expensive car will also pay more for coverage, so they bump up the rates regardless of actual risk.
I’ve wondered about this too, honestly. I drive a BMW (used, not new—definitely not rolling in cash here), and my insurance is way higher than it was when I had my old Honda Civic. My driving record’s clean, no tickets or claims, but the premium still jumped a ton when I switched cars. At first I thought it was just because repairs are pricier on these cars, but after talking to a few friends with similar models, it seems like there’s more to it.
One thing I noticed: when I shopped around for quotes, some companies were way higher than others for the same coverage. It almost felt like they were just guessing what I’d be willing to pay based on the badge on my hood. Maybe there’s some logic behind it—like luxury cars being bigger targets for theft or costing more to fix—but it doesn’t always add up. My neighbor has a pickup that’s worth about the same as my car and his insurance is lower.
About no-fault states, you’re right that your own insurance pays out first regardless of who caused the accident. But when I asked my agent why my rates were so much higher after switching cars, she said it was mostly about “replacement cost” and “parts availability.” Apparently, even a minor fender bender can get expensive fast if you need specialty parts or labor. Still feels like there’s some “luxury tax” baked in though.
I’m curious if anyone else with a mid-range luxury car has found ways to keep their premiums down? Like does going with higher deductibles actually make a big difference, or is it just pennies compared to what they tack on for the brand? Sometimes I think about going back to something simpler just to save money... but then again, I do love how this thing drives.
Yeah, the “luxury tax” feeling is real. I’ve seen people bump their deductibles up to $1k or even $2k to get the premium down, but honestly, sometimes the savings aren’t as big as you’d hope. It’s wild how much the brand and model can swing things. Ever notice if your rates changed after moving or changing where you park? Sometimes just a different zip code or switching from street to garage parking can make a surprising difference.
Raising your deductible sounds like the obvious move, but honestly, it’s not always a slam dunk for saving cash. I’ve run numbers for folks who thought doubling their deductible would cut their premium in half, but sometimes the savings barely cover a tank of gas over the whole year. You really have to weigh whether you’d be comfortable shelling out $2k out of pocket if something goes sideways.
About the zip code thing—yeah, moving even a mile or two can change rates, but it’s not always predictable. I’ve seen cases where someone moves to what they think is a “nicer” neighborhood and their rate jumps because of local claims history or theft stats. Parking in a garage usually helps, but only if you actually tell your insurer—some people forget to update that and miss out on the discount.
If you’re looking to save, sometimes it’s less about deductible tweaks and more about shopping around every year or two. Loyalty doesn’t always pay off with insurance companies... kind of annoying, but that’s how it is.
You nailed it with the shopping around bit. I drive a higher-end car and honestly, switching insurers every couple years has saved me way more than tweaking my deductible ever did. I used to think “garage kept” was just a checkbox, but it actually made a noticeable dent in my premium—just had to remember to update it when I moved. It’s wild how unpredictable rates are from zip code to zip code... sometimes feels like rolling dice. Good on you for digging into the details—most folks just set it and forget it.
Funny you mention the “garage kept” thing—I had the opposite experience at first. When I moved, I forgot to update that detail and my premium quietly crept up for months. Only caught it when I finally sat down to comb through the policy line by line. The zip code swings are wild too. My last move was literally three blocks, but my rate jumped almost $200 a year. Makes you wonder what kind of algorithm magic is going on behind the scenes...
