In all the excitement of buying a new car, the idea of researching car insurance rates and gathering auto insurance quotes can be a letdown. Deciphering the differences between insurance coverage and car insurance companies doesn’t have to take a degree in quantum physics to understand.

We will walk you through every aspect that goes into car insurance quotes and then actual car insurance costs. Insurance policies are determined by a multitude of factors including your driving record, credit record, your age, the make and model of your car, where you live, and where the car is kept overnight.

BMW has become synonymous with high-end luxury cars, and BMW owners praise the precise engineering that goes into each luxury vehicle, despite the larger price tag. Because they are luxury cars and are more expensive, BMW insurance rates are going to be slightly higher than the average cost of insurance for say, a Honda or Subaru.

When you drive a BMW, you want to get the best coverage possible for your pride and joy. Let’s break down auto insurance rates in general and then how those factors directly impact BMW car insurance prices.

How Much Does BMW Insurance Cost?


To get an accurate picture of what your insurance will cost, you first need to develop an understanding of what providers consider to be risks.

Insurance companies study a variety of parameters to develop rates including:

Continue reading below to learn how each of those factors is used.

Safety Rating & Damage Threshold

Safety ratings and damage thresholds have a profound effect on the cost of your car insurance. According to the NHTSA 2020 record, traffic crashes are the number one problem in all American transportation.

Motor vehicle crashes take up 94% of all transportation deaths and 99% of transportation injuries. It is estimated that these crashes cost $150 billion dollars a year in damages.

The higher the safety ratings, the lower the likelihood of injuries, the lower risk of your insurance company having to pay out considerable sums of money. BMW models overall perform quite well in crash tests, making sure preventing bodily injury is a high priority. Let’s look at a few average BMW models and see how they stack up against the IIHS safety ratings.

The Insurance Institute for Highway Safety, Highway Loss Data Institute (IIHS) has different letters awarded to cars starting at “G” (good), “A” (acceptable), “M” (Marginal), and “P” (Poor). The IIHS awarded the 2020 BMW 3 Series, the luxury sedan, a rating of “good” in all its crashworthiness categories, the highest accolade it awards. The coupe received a slight ding on side-impact crash testing, earning an M.

It did get slightly dinged for its headlights, receiving a G, M, and P depending on the trim and model you choose. The 2020 BMW 3 Series received the prestigious Top Safety Pick for 2020.

The 2020 BMW X5 also received a rating of “good” in all crashworthiness categories and was given the 2020 TOP SAFETY PICK+ award by the IIHS.

Generally, BMW fares very well in safety rating tests by the IIHS and the National Highway Traffic Safety Administration.

BMW Insurance Discounts

There are ways to get driver discounts on the cost of your car insurance premium, one of those ways is by ensuring your car is equipped with the best safety features available. Each car insurance company will offer different discounts.

Every BMW is fitted with ABS and air bags as standard, and many have rear-facing cameras fitted as an optional extra, which may help to reduce the cost of your premium.

Newer models have intelligent driving systems like the xdrive, helping you change lanes safely and provide crash detection warnings to name just a few features.

Comprehensive & Collision Coverage

If you drive an expensive car, you should expect the price of your car insurance to reflect this.

Comprehensive and collision coverage is directly affected by the cash value of your vehicle. Collision coverage covers your car if it collides with another object.

Comprehensive coverage or full coverage covers you in the event of a collision but also from hail, fire, and theft. Full coverage also pays for repairs for your car and any property damage of another if you’re at fault.

Uninsured Motorist Coverage is another option helping cover you in case you are hit by a motorist without insurance. Personal Injury Protection covers you and any passengers from any lost wages and medical bills in the event of an accident. So, armed with that quick review, let’s look at BMW insurance costs.

According to Kelley Blue Book, the expected cost of a new, entry-level BMW 3 Series sedan starts at $44,550.

For a 2020 BMW X3 M40i SUV, you could expect to start at $55,900 MSRP. These high prices are reflected in the cost of your insurance premium.

Claims Frequency & Potential To Cause Damage

The higher the likelihood of a specific car type being involved in an accident, the higher the insurance premium for it.

The IIHS has information on insurance losses by makes and models. The BMW reported having a 77 percent higher-than-average claim rate for collisions, and 163 percent higher than average comprehensive insurance claim rate in the mid size luxury car class.

The BMW 7 Series 4dr (very large, luxury car class) is reported as having a 111 percent higher-than-average frequency of claims for collisions, and 255 percent higher-than-average comprehensive insurance claim rate.

These high claim frequencies will have an adverse effect on the price of your insurance premium.

Also, the make and model of your vehicle have a large impact on car insurance rates. The make is your brand, like BMW or Mercedes Benz. The model is the specific type of vehicle within your brand and BMW has quite a few within each category: SAV, Coupe, Convertible, and Sedan.

Read more: Mercedes Benz Auto Insurance

Once you narrow down that category, you then can choose different models within that category like the BMW x1-x7 for the SAV’s and the sedans having other numbering systems to set apart models.

Now, after figuring out your model, the various trim packages starting from basic to ultra-luxury, will increase your final MSRP (sticker price) and therefore your insurance premium costs.

Also, because BMW is a German car (BMW standing for Bavarian Motor Works) the overall ability to quickly fix damages or replace parts is just not there. Because there isn’t a quick fix for parts, the overall costs to insure are increased.

What Are The Best Companies For BMW Insurance?

There are many things to consider when choosing an insurance provider.

Regardless of the car you drive, you should never take the first quote you’re offered. Shopping around, getting at least three quotes from competing providers, and reading up-to-date reviews may help you save considerably on your premium.

Here are a few auto insurance companies and the driving discounts they offer:

State Farm

  • Good Driving Discount
  • Accident-Free Discount
  • Defensive Driving Course Discount
  • Driver Training Discount
  • Student Away Discount
  • Good Student Discount
  • Steer Clear App
  • Drive Safe and Sound Discount

Learn More: Read our full State Farm Auto Insurance Review.


  • Safety Features like air bags, anti-lock brakes, anti-theft systems, and daytime running lights
  • Good Driver
  • New Vehicle
  • Seatbelt Wearing
  • Defensive Driving
  • Good Student
  • Emergency Deployment
  • Military
  • Membership and Employee
  • Emergency Deployment
  • Multi-Vehicle
  • Multi-Policy

Learn More: Read our full Geico Auto Insurance Review.


  • New Car
  • Multi-policy
  • Good Student
  • EZ Pay
  • eSmart Discount
  • Full Pay
  • Safe Driving Club
  • Responsible Payer
  • Safety Features like anti-theft and anti-lock brakes
  • Early Signing Discount

Learn More: Read our full Allstate Auto Insurance Review.

Some discount-related questions you should ask a potential insurer include:

  • Do you have a discount for good drivers?
  • Do you offer any low mileage discounts?
  • What optional coverages can I leave off?
  • Will purchasing a new car affect the cost of my policy?

Also keep in mind where you live makes a difference. Motorists in New York will often pay more for car insurance than say, Georgia. Your age as well plays a small role. A 40-year-old male will pay less than a 20-year-old male with the exact same car.

Shopping For BMW Car Insurance

Now that you’re better informed about the many factors that influence insurance cost, you can choose the best insurer for your BMW.

Remember to do your research and read plenty of reviews to get the best deal for you.