Car insurance for BMWs

Auto insurance for BMWs typically works the same way as it does for any other type of car, except you may pay higher premium rates.

Zack Sigel


Zack Sigel

Zack Sigel

Managing Editor

Zack Sigel is a former managing editor at Policygenius who oversaw our mortgages, taxes, loans, banking, and investing verticals.

Published|4 min read

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Car insurance protects you from the financial risk that you’ll injure someone with your car or destroy his or her property. Car insurance could also reimburse you if your own car is stolen or damaged. In 48 out of 50 states, you’re required by law to have some form of car insurance, but how much coverage you purchase largely hinges on how much you actually need.

Auto insurance typically works the same way for your car regardless of what kind of car it is. You purchase coverage in each of several areas that comprise your car insurance policy, pay your premiums, and you’re covered if you’re financial liable for damage. This is how it’ll work for a budget car and how it’ll work for a BMW.

But BMWs are higher-end cars, which means that although the process of applying for car insurance and claiming benefits under your policy are the same, you may be forced to pay a higher premium for coverage. That’s because expensive cars are pricier to repair or replace, so they present a larger risk to the auto insurance company.

Car insurance premiums can be expensive, but shopping around for the right policy can save you hundreds of dollars per year. Policygenius can help you compare auto insurance companies until you find one that works for you.

Read on to learn more about BMW car insurance:

How do I get car insurance for my BMW?

Not only can you get auto insurance for your BMW, but if you drive the car at all then you’re required by law (in most states) to get covered. But because you already paid more than usual for your BMW, you’ll want to spend a higher-than-usual amount on car insurance. The amount you get should be enough to protect you financially from damage, loss, or liability that you’d otherwise have to pay for out of pocket. You might be able to afford a BMW, but can you afford to replace it, too?

The way to get car insurance for your BMW is just like any other car, luxury or otherwise. First, figure out how much auto insurance you need. Keep in mind that car insurance pays for medical bills incurred as a result of your driving as well as damage to your car or somebody else’s.

Then, compare prices online. BMWs are often much more expensive to insure than lower-end cars, so you’ll want to spend some time exploring your options. However, BMWs easier to insure than some exotic and performance cars, which often use rare and have international parts that are even harder and pricier to replace. If you’re reading this and wondering whether to go for the Lamborghini or the BMW, the latter will at least be covered by more insurance companies.

Why do I pay higher premiums for BMW car insurance?

Simply put, BMWs are more expensive to insure because they’re more expensive in general. Repair bills for less-expensive cars include less work and more readily available parts; such parts and requisite mechanic skills may be harder to come by for luxury cars.

Your rates are determined by a number of factors about you and your lifestyle as well as the amount of coverage you need. However, even if you’re less risky to insure than other car insurance customers, you can still expect to pay between $1,500 and $3,500 per year for BMW car insurance.

The main factors that go into determining your car insurance rate are:

Your age.

Younger drivers will get charged higher rates than older drivers (rates typically fall after age 25) because car insurance companies have determined not only that they’re less experienced but also that they drive more recklessly. If you’re a younger driver lucky enough to get a BMW for your first car, expect to pay a fortune for car insurance. (Although there are many discounts available, especially for students.)

Your location.

Higher-crime areas could lead to higher rates if the car insurance company determines that your BMW is more likely to get stolen or broken into. Your car insurance covers you in both of those cases as long as you have comprehensive insurance, so the insurer needs to protect its risk.

Your gender.

Men have a higher risk of causing an accident. Can’t argue with the data.

Your driving record.

Drivers who’ve demonstrated a history of operating a vehicle safely can enjoy lower premiums.

Your coverage needs.

Car insurance actually comprises several different components. You’re not required to purchase coverage in all the components – most states only require coverage in liability for bodily injuries and property damage. But you’ll want to look into the following car insurance components when determining how much coverage you need for your BMW.

  • Liability coverage. You’ll have to purchase this for every state you’re required to buy car insurance in. It protects you from the liability you incur injuring someone or destroying his or her property with your car. There’s not a huge difference between the damage you cause with your beater and that you cause with your Beamer, so this will seem familiar to you if you’ve bought car insurance in the past.

  • Personal injury protection. Also called PIP, this component is optional in a lot of states but worthwhile to have if you don’t think you can pay the medical bills of people injured in your car, including yourself.

  • Collision insurance. Now we start getting into the car insurance components more relevant to BMW owners. Collision insurance covers damage to your vehicle when it’s involved in an auto accident, whether the collision occurred with another car or a stationary object. Collisions can cause damage that spikes into the thousands of dollars, especially for BMWs. Make sure you to get enough coverage in this area or risk having to repair your expensive car out of pocket.

  • Comprehensive insurance. If you’re a BMW owner, you’ll want to pour money into this component of auto insurance. That’s because it will pay to reimburse the cost of your car if it’s stolen or damaged. Comp insurance protects against everything from thieves to bad weather, so you’ll need more of it if you can’t afford to pay out of pocket to replace the car.

  • Uninsured/underinsured motorist insurance. You might have enough car insurance to protect your BMW, but drivers of lower-end cars might not. If your BMW takes a hit and the liable party’s insurance can’t afford to repair the damage, or if he or she doesn’t have insurance at all, then uninsured/underinsured motorist insurance will help make up the difference.

  • Gap insurance. Gap is a backronym taken from the phrase “guaranteed auto protection” in that it pays off the gap between the amount you owe on a car that was stolen and the amount it was worth after depreciation. You may owe more than it’s worth, which is especially true for luxury cars that depreciate at a faster rate, so gap insurance could save you thousands of dollars if your BMW gets stolen or destroyed.