Getting insurance for your BMW is certainly above average. Car insurance is estimated to be around $2,200 or around 180$ per month in the United States for a middle-range BMW which is around 25% costlier than the average car you see on the road. Of course, insurance would vary between states and the specs of your car.
Why is BMW insurance so expensive?
If you’ve looked carefully around the prices of insurance for different brands, Mercedes-Benz cars are just as luxurious and powerful and tend to have 25 percent cheaper insurance than BMWs. Both of these vehicles are European imports, and both originate from the same country, they also compete for the same segments and have an approximately equal cost. What is the reason for BMW’s expensive insurance cost?
A few of the reasons for the higher insurance cost of BMWs are the higher repair costs, lower reliability of some models, and an average chance of being targeted by a theft auto group since BMW speaks status and luxury.
On the other hand, talking about potential theft, BMW isn’t even in the top 10 targeted brands for theft. The tallied BMW models by the NHTSA report a theft rate of below 2 percent with the sole exception of the BMW 1993 3 Series, and the 2000 BMW X5, both of which reach respectively 10 and 9 percent.
Like most cars, newer BMW models cost more than older BMWs. The yearly insurance of BMWs from the year 2013 costs on average 35% less than the same model in 2019 which results in more than $1,200 per year or $100 per month. Moreover, the price of insurance varies by state and city.
Despite BMW being a high-end luxury vehicle brand, they are not the brand with the highest insurance rate. The reason why their insurance costs are still somewhat reasonable is that most BMW models score five out of five or four out of five in the
Average BMW insurance cost in the US per year:
- 2013 – $2,800
- 2015 – $3,300
- 2017 – $3,500
- 2019 – $3,600
The cheaper BMWs to insure are the ones that are smaller. The X1 and X2 models for instance start on the lower spectrum of $2,000 per year, especially if they are older. Smaller SUVs also tend to be less costly to insure than bigger luxury sedans. For example, the average annual insurance rate for a 2019 sedan or coupe sits around $4,000, whereas the average for a 2019 BMW SUV is $3,200.
Naturally, the cheaper the MSRP of the vehicle, the cheaper the insurance cost will be. And since high-end large luxury sedans like the BMW 5 Series or the BMW 7 Series are very expensive, their insurance costs also rocket.
A good example of how big of a role the price of the vehicle plays in insurance price formation would be a comparison of The M3 coupe with an MSRP of over $60,000 and a 1 Series BMW with an MSRP of just $30,000.
Another aspect that takes part in insurance pricing, not to neglect, is the average age of drivers. It depends on which state you live but on a general basis insurance pricing tends to increase when the driver is young and tends to decrease when the driver of the car is older and more experienced. In some cases, the difference in the price between a 20-year-old driver and a 45-year-old driver might be almost double.
Moreover, previous driving accidents, driving behavior, fines, and penalties the driver might have also tend to affect insurance pricing.
Are there BMWs with cheaper insurance costs?
The cheapest insurance BMW on the market is the 2018 X1 sDrive 28i with a yearly insurance price of $2,400, followed by the 2015 and 2017 X1 sDrive 28i. Afterward, the models vary:
- X1 – sDrive 28i, 2019 – around $2,900
- X2 – sDrive 28i, 2019 – $2,980
- X3 – sDrive28i, 2013 – $2,500
- X3 – sDrive 28i, 2015 and 2017 – $2,880 and $2,900
The cheapest insurance on a BMW sedan you could get with the BMW 3 Series 2013 320i and the 2015 320i with $2,800 and $3,000 respectively. If you are looking for a luxury sedan, naturally the overall expenses of maintenance, servicing, ownership costs, taxes, and of course insurance costs would be lower if you go for a Series 3 BMW instead of a Series 5 or a Series 7.
Naturally, an insurance cost lies within the ownership costs of a certain vehicle. And whether you purchase a hatchback, a luxury sedan, or an SUV, BMW continues to be one of the most expensive cars to own out there.
How much is the average ownership cost of a BMW in 2021?
The average ownership cost in 10 years is estimated to vary between $15,000 and $18,000 or an average between $1,500 and $1,800 per year. This does not include gas and insurance costs. The mentioned number takes into account the needed servicing and maintenance done to the vehicle in the period of one year.
How old do you need to be to get a lower price on the insurance rate of your car?
Typically, in most states, most insurance companies provide lower insurance rates to drivers over 20 years old. Therefore, teenagers tend to pay the highest insurance prices for their vehicles. Moreover, older, more experienced 45-year plus drivers pay ever lower, since they are responsible on the road and participate in fewer traffic accidents. Some countries and states take into account driving experience and not age only.
Will your BMW insurance drop after you have paid it off?
Yes, in most cases after you have paid the entire sum of your car loan, your insurance premiums are more likely to drop, resulting in a lower insurance cost per year basis. If not that, you would certainly have a higher control level over how much you would actually pay after you’ve paid off the car loan.