It’s not easy to afford a Mercedes, but the true cost of owning one of these luxury cars comes from additional expenses like maintenance and insurance. If you’ve gotten an insurance quote for a Mercedes, you may have noticed that rates are typically higher than other types of vehicles – 20% higher, according to 2021 rate data from Quadrant Information Services.
We’ve broken down all the factors that contribute to premiums and identified the best insurance companies offering affordable coverage.
How much does having a Mercedes influence your car insurance rate?
We looked at average car insurance rates across the country and found that Mercedes owners pay $2,187 per year on average for insurance, 20% above the national average of $1,738. To find out why, we looked at a few potential culprits that are known to drive up rates.
Often, insurance companies charge a premium for vehicles considered particularly dangerous based on accident data. But Mercedes are rated as one of the safest cars due to its crash prevention technology, and a 2017 study confirmed an extremely low number of traffic deaths.
The bad news is that it loses in replacement costs. Even a small fender bender can mean an astronomically high repair bill for your Mercedes when you add up all those expensive parts.
Think about it this way: if you buy a $5,000 used car and it gets totaled in an accident, your insurance company will only have to pay $5,000 to replace it, which means they’ll probably give you a good deal on insurance. Get into that same accident with a brand-new Mercedes C300, however, and your claim suddenly skyrockets to $41,600. With potential damages in mind, it makes sense that your insurance company would want to charge more for coverage.
How much is insurance for a Mercedes?
We gathered sample insurance rates for a Mercedes C300 and found that annual premiums average $494 for minimum coverage and $2,187 for full coverage.
Because the cost of insurance for a Mercedes is so heavily dependent on the cost of the vehicle, your premium will vary based on the model you own. A C300 only costs $41,600 brand new, which is on the low end for the brand. Pick up an AMG S 63 Cabriolet with a $185,400 price tag, and you can expect to pay more.
|Average annual minimum premium for a Mercedes C300||Average annual full coverage premium for a Mercedes C300|
Every insurance company considers model-specific factors like safety and replacement costs differently when calculating rates, which means some insurance companies give lower rates to Mercedes owners than others. In our study, we found the best rates for a Mercedes C300 from USAA, Geico and Amica. MetLife charged the highest premiums.
See how the others stacked up:
|Average minimum annual premium||Average full annual premium|
What factors influence your car insurance other than your car?
Even if owning a Mercedes makes insurance more expensive, there are many other factors that contribute to a high (or low) rate. These include:
- Distance driven
- Marital status
- Driving history
- Credit score
- Amount and types of coverage
- Policy deductible
How can you save money on Mercedes car insurance?
If you want to drive a Mercedes, there’s not much you can do to avoid higher insurance costs (short of choosing a less expensive vehicle.) However, there are factors you can control to help keep premiums as low as possible:
- Keep your driving record clean: Mercedes has an outstanding safety reputation, but that doesn’t mean you can throw caution to the wind while you’re behind the wheel. Obey traffic laws and practice defensive driving to avoid tickets and accidents, both of which can contribute to high insurance rates.
- Park in a garage: Leaving your Mercedes on the street at night increases the risk that it will be damaged or stolen. Some providers may offer a discount if you park it in a locked garage instead.
- Reduce your mileage: Your insurance company views every mile you drive as another chance you’ll get in an accident. Lower annual mileage may reduce your insurance rate significantly, particularly if you participate in a usage-based program.
- Bundle coverage: Most insurers will give you a discount if you purchase both auto and homeowners insurance together. Look at getting coverage for your Mercedes and your home from the same carrier to see if it makes a difference.
- Choose a higher deductible: Collision and comprehensive rates for your Mercedes might be a culprit if your rate is particularly high. Try increasing your deductible to lower monthly payments – just make sure you don’t choose a deductible higher than what you can afford in a pinch.
Is it expensive to insure a Mercedes?
Auto insurance for a Mercedes is more expensive than average, with owners of these vehicles paying 20% higher premiums than other drivers. This comes out to around $2,187 per year to insure a Mercedes C300.
Why does insurance for a Mercedes cost so much?
Mercedes insurance is expensive because of the vehicles’ high replacement cost. A C500 costs $41,600 brand new, but more expensive models like the AMG S 63 Cabriolet can be as much as $185,400 off the lot. Replacement parts are also more expensive than other car manufacturers.
Which companies offer cheap insurance for Mercedes?
USAA, Geico and Amica were the most affordable insurers for Mercedes owners according to the rates we found in our study. While it’s a great idea to get quotes from these insurers, you should compare the cost of a policy from several companies to see which one is willing to give you the best rate personally.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2019 Mercedes 300, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2020 Quadrant Information Services data.