Does the value of my car impact the rate of my insurance policy?

Is the cost of my insurance connected to the value of my car? The insurance for my 2020 BMW X5 is extremely expensive. I have a great driving record and live in an area without a lot of traffic.

“Having a new luxury car will impact the rate of your insurance policy for many reasons.
If you look at the declarations page of your insurance policy, the most expensive part of your policy is probably the collision coverage and comprehensive coverage.
Collision covers the physical damage that can happen to your car in the event of an accident. This includes:
  • the parts
  • labor (often a specialist for a luxury car)
As your car gets older and parts become more available, the cost of the physical damage will decrease.
If you are unhappy with the overall rate of your insurance policy, it may be time to shop for new car insurance.”
Shannon Martin
Answered on Jul 06, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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