Is it cheaper to insure a Mercedes or BMW?

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Asked December 3, 2014

1 Answer


While it may seem like a simple question, the information is too broad. Both Mercedes and BMW have models ranging from the low 30s all the way up to models in the six figures. They have varying safety and other packages changing the risk profile for insurers.

The model of Mercedes or BMW that you own will be a determining factor in the actual cost difference between the two cars, including the amount you will pay for insurance. In general, a Mercedes will be quite a bit more expensive, although the total cost of insurance is a couple thousand dollars lower. The sales price is only one of the factors that goes into an insurer's valuation. For the comparison used here, popular 2-door versions of both cars were used.

Over a 5 year period, you can expect to pay an average cost of $2,378 per year, and a total 5 year cost of around $11,905 for the Mercedes. By comparison, the BMW will cost about $2,631 per year, and over $13,100 for the 5 year insurance premium.

If the cost of insurance is your primary consideration, the Mercedes will be the lower cost vehicle although the BMW has a lower total cost of ownership when you account for the average car insurance policy.

Why Is a BMW Insurance Policy More Expensive?

Both are luxury cars within a similar price range. So you might rightly wonder what's the difference. One reason the BMW has a high insurance cost is because the Mercedes is recognized as a world leader in vehicle safety innovation. By making their cars safer, the company reduces the risk of insuring it. Even though the car costs more to replace, you're less likely to suffer serious physical injuries that would cost an insurance provider more money. The key benefits in the form of savings are passed on to consumer in the form of lower annual insurance costs.

This is not to say the BMW is more dangerous to own. It's only that it may not have the same level of advanced safety enhancements that a Mercedes is known for. 

Another factor to consider is your actual cost of insurance. Since the sample costs are based on a driver with both excellent credit and a clean driving record, your actual rates may differ considerably. Other factors that can cause you to pay higher rates are your marital status, where you live and where the car is parked at night, your credit score and even how far you expect to drive the car each year. 

Finally, different parts of the car can come into play. What is your engine size, and is it difficult to find replacement parts? Will this add to the down time when you need rental car coverage? Your insurer may raise your insurance premiums. Do you have a loan through BMW Financial Services? Some insurers charge an extra fee if your car is currently financed. 

All of these factors must be considered to get your insurance quotes, and the costs given here are used for base comparisons only.

Answered December 3, 2014 by Anonymous

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