As the economy continues to improve, sales of luxury cars have been gaining steam with brands including Mercedes-Benz, Lexus, BMW and Audi all seeing double-digit sales growth during 2021's first quarter, according to Bloomberg.
Aesthetic treasures and engineering marvels, luxury autos are also more expensive to insure than your typical daily driver. As advanced digital accouterments, including telematics and safety features, become increasingly synonymous with opulence, the insurance rates for these cars go up.
When making auto purchase decisions, it is important to keep the total cost of ownership in mind, including the price of insurance, according to Chong Gao, director of product management R&D at Mercury Insurance. Gao explained vehicles that have more expensive repair costs tend to cost more to insure. This rings particularly true for cars featuring the latest technology, which can be costly to repair or replace after an accident.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
