High-End Cars, Higher Costs
It’s been in the news that high-income Americans account for roughly half of all consumer spending in 2025. This is up from approximately a third of spending in the early 1990s.[1] Essentially, the top 10% of households in terms of wealth are propping up the retail economy.
But is that true in industries beyond retail? In the insurance industry, we can look to trends in shopping for luxury cars versus standard cars as an indication because luxury cars are most frequently purchased by the wealthiest sector. One survey of people considering a luxury car purchase found the majority had annual incomes between $200K and $1 million.[2]
The Zebra analyzed insurance data over the last five years and found luxury car owners are shopping more often and seeing their rates increase faster than drivers of standard cars.
Key Findings
- There has been a 116% increase in insurance shoppers for top luxury cars, while insurance shoppers for the most popular non-luxury cars has gone down 10% in the last 5 years.
- Car insurance rates increased 56% over the last five years (compared to 41% for non-luxury cars)
Insurance Shopping and Rate Trends: What You Drive Matters
The Zebra analyzed the rate at which luxury car owners are shopping for insurance and found they are shopping at a rate 116% higher than in 2020.
As for everyone else? During the same period, we studied the 10 most popular non-luxury cars and found that drivers of these vehicles are shopping for insurance at an 11% lower rate during the same time period.
In the chart above you can see the percent change quarter-over-quarter in the percentage that luxury car buyers made up of the total insurance shoppers during that time versus the percent change for the top regular cars. As you can see, while both groups have ups and downs quarter-over-quarter, the ups for luxury vehicles are higher and more consistent.
Looking beyond just how many people are shopping, let's also consider the cost. As we know, the cost of insurance is going up across the board. However, it is going up faster for luxury cars than for the standard vehicles we analyzed. Luxury cars saw an increase of 56% from 2020 to 2025, while the non-luxury cars we looked at averaged an increase of 41%
In the chart above you can see specifically the dollar difference (not the actual amount of the premiums) of average monthly insurance prices changing between luxury cars and non-luxury cars. The amounts for both have sharply increased over the last five years, but you can also see the amount of difference starting to widen.
One possible conclusion is that as inflation and other economic factors squeeze the wallets of much of the population, the top 10% of spenders who are currently propping up the retail industry, are also disproportionately supporting the insurance industry.
We know that for many the rising cost of insurance has led to historic rates of uninsured drivers, with 15% or more than one in seven drivers in the U.S. now driving uninsured.[3] However, for those who can afford luxury vehicles, the insurance costs, while higher, are not cost prohibitive.
Why the Differences?
Luxury cars are traditionally more expensive to insure because they are more expensive to repair and have an increased risk of theft.
As David Seider, Chief Commercial Officer at The Zebra explains: “As a general rule of thumb, if a car is more expensive to buy then it is probably more expensive to repair. And at the end of the day, auto insurance rates will go up when a car is more expensive to repair or replace.”
“In recent years, luxury vehicles are equiped with increasingly sophisticated technology,” Seider continues. “Myriad sensors and cameras make luxury vehicles much more expensive and complex to repair. Not only are these parts more expensive but the labor required to install them is much more specialized. This can be compounded further by the number of luxury vehicles that are imported as it adds another layer of labor specialization that can drive up the bill. On top of all that, there is still the possibility that these costs continue to mount as tariffs drive up the cost of imported parts.”
These factors are definitely impacting the disproportionate increase between luxury cars and standard cars over the last five years. However, it also may be a reflection on what the market will bear.
The insurance industry for high-net-worth individuals is a growing market, particularly since the pandemic.[4] Specialized insurers and policies are designed to be personalized to the niche needs of the high-net-worth market.
While car insurance prices are rising for everyone due to factors like increasing large-scale weather events due to global climate change, economic impacts (tariffs, inflation and supply chain disruptions) and regulatory changes, some are able to absorb the increases more than others.
Wrapping Up
We live in changing economic times. Slowing growth, a tightening labor market and persistent inflation have many struggling to afford auto insurance. However, top earners, who disproportionately support the luxury vehicle market, may also be doing more insurance spending than the rest.
Methodology
For this study we compared data from Q1 of 2020 to Q3 of 2025 and looked at the number of applicants and insurance rates offers for drivers of popular luxury vehicles (models: BMW X5, Lexus NX, Lexus RX, Mercedes Benz GLE, Mercedes Benz GLC, Lexus TX, Audi Q5, Audi X3, Buick Envision) and the most popular non-luxury vehicles (models: Ford F-150, Toyota RAV-4, Honda CRV, Toyota Camry, Toyota Tacoma, Honda Civic, Toyota Corolla, Hyundai Tucson, Ford Explorer, Chevrolet Equinox)
