Why is BMW Insurance So Expensive – BMW is a luxury car brand that is renowned for its stylish designs, high performance, and advanced technology.
Owning a BMW is a status symbol for many, but it also comes with a high price tag, both in terms of the vehicle’s cost and the cost of insurance.
BMW insurance is notoriously expensive, and many people wonder why that is the case. In this article, we will delve into the reasons why BMW insurance is so costly and provide tips on how to save money on your BMW insurance premiums.
BMW: The Brand and its Cars
BMW cars are known for their precision engineering, sleek designs, and advanced technology.
BMW cars are often considered to be high-performance vehicles, which means they come with a hefty price tag.
The cost of a new BMW can range from $35,000 to well over $100,000, depending on the model and features. The high price of the vehicle is one reason why BMW insurance is so expensive.
Why is BMW Insurance So Expensive?
High Repair Costs
One of the main reasons why BMW insurance is so expensive is because of the high cost of repairs. BMWs are precision-engineered vehicles that require specialized tools and parts for repairs.
As a result, repairing a BMW after an accident can be more expensive than repairing other types of vehicles.
Insurance companies take into account the cost of repairs when setting insurance premiums, which is why BMW insurance tends to be more expensive than insurance for other brands.
High Theft Rates
BMW cars are also popular targets for car thieves. According to the National Insurance Crime Bureau, the BMW 3 Series was the second-most stolen vehicle in the United States in 2019.
The BMW X5 and X6 also made the top 10 list of most stolen vehicles.
High theft rates mean that insurance companies face a greater risk of having to pay out claims, which results in higher insurance premiums for BMW owners.
BMW cars are designed for high performance, which can make them more dangerous to drive.
Drivers of high-performance vehicles are more likely to engage in risky driving behaviors, such as speeding or aggressive driving, which increases the likelihood of accidents.
As a result, insurance companies charge higher premiums for high-performance vehicles, including BMWs.
BMW cars come with advanced technology features, such as driver assistance systems, adaptive cruise control, and lane departure warning.
While these features can enhance safety, they can also be costly to repair or replace.
Insurance companies take into account the cost of repairing or replacing advanced technology features when setting insurance premiums.
BMW is a luxury brand that is often associated with high-net-worth individuals. Insurance companies may assume that BMW owners have higher incomes and are more likely to file expensive claims.
As a result, insurance companies may charge higher premiums for BMW insurance based on brand perception alone.
Age and Driving Record
Insurance premiums for BMWs are also affected by the driver’s age and driving record. Younger drivers, especially those under the age of 25, are considered higher risk by insurance companies and are charged higher premiums.
Drivers with a history of accidents or traffic violations may also be charged higher premiums.
Geographic location can also impact BMW insurance premiums. Drivers who live in areas with higher crime rates or higher accident rates may be charged higher premiums than drivers who live in areas with lower crime and accident rates.
Tips for Saving Money on BMW Insurance
While BMW insurance is expensive, there are ways to save money on your premiums. Here are some tips to help you reduce the cost of BMW insurance:
The first step to saving money on BMW insurance is to shop around and compare quotes from different insurance companies.
Don’t assume that your current insurance provider offers the best rates for BMW insurance.
By getting quotes from multiple providers, you can find the best deal for your needs and budget.
Increase Your Deductible
A deductible is an amount you pay out of pocket before your insurance coverage kicks in. Increasing your deductible can lower your insurance premiums.
Make sure you choose a deductible that you can afford to pay if you need to file a claim.
Bundle Your Insurance
Bundling your BMW insurance with other types of insurance, such as home or renters insurance, can result in a discount on your premiums.
Many insurance companies offer multi-policy discounts, which can save you money on your insurance bills.
Take Advantage of Discounts
Insurance companies offer a variety of discounts for BMW owners, including discounts for good driving habits, safe driving courses, and multiple cars on the same policy.
Make sure to ask your insurance provider about all available discounts and take advantage of them to save money on your BMW insurance.
One of the best ways to save money on BMW insurance is to drive safely. Avoid speeding, aggressive driving, and other risky driving behaviors. A clean driving record can result in lower insurance premiums.
Consider Usage-Based Insurance
Usage-based insurance (UBI) is a type of insurance that uses technology to track your driving habits. UBI can result in lower premiums if you are a safe driver.
BMW offers its own UBI program called BMW ConnectedDrive, which can save you money on insurance premiums.
BMW insurance is expensive for several reasons, including the high cost of repairs, high theft rates, high performance, advanced technology, brand perception, age and driving record, and geographic location.
However, by shopping around, increasing your deductible, bundling your insurance, taking advantage of discounts, driving safely, and considering usage-based insurance, you can save money on your BMW insurance premiums.
Remember to always do your research and compare quotes from multiple insurance providers to find the best deal for your needs and budget.