Like Luxury Cars? Hope You Can Afford Luxury Insurance
Sure, it's nice to ogle cars in the 200 mph club, or even the 150 mph club, for that matter. But have you ever considered the costs of insuring such prized possessions?
Forbes has done a little study on the subject for us, and while we're not surprised to find that the pricier the vehicle, the pricier the insurance, we're shocked to see how much it really costs to insure these beasts. Check it out:
That Mercedes S-class you've been hot for? Try in excess of $22,500 per year, and this with just $500 deductibles on collision and comprehensive coverage, $100,000 each for personal and property coverage and $25,000 each for medical and uninsured coverage, according to Forbes. Considering the likely owner of the car will have assets far beyond what's listed there, we're talking a huge chunk of change.
According to Forbes, 20% of the price of luxury cars is a good rule of thumb. That means, however, that someone paying a low lease payment on a car like the Mercedes S-class will likely end up paying more to cover it than the actual monthly payment itself.
Other surprising numbers:
BMW M5 and M6: $18,548
Mercedes G-Class: $17,784
Jaguar XK: $16,154
Land Rover Range Rover: $16,042
The moral of the story? Check with your insurer before committing to buy a lease a car to be sure on overall costs.