Insurance Premiums For The Cls550: Why So Expensive?

The Mercedes-Benz CLS 550 is a luxury sedan with sleek designs, powerful performance, and advanced features. Insurance rates for this car are higher than average, with an average annual cost of $1,940, or $162 per month. The cost of insurance for a CLS 550 depends on various factors, including location, driving history, coverage options, and the insurance provider. Luxury vehicles like the CLS 550 tend to have higher insurance rates due to their higher value and potentially expensive repair costs.

The CLS550's high value and expensive repair costs

The CLS550 is a luxury sedan manufactured by Mercedes-Benz, known for its sleek design, powerful performance, and advanced features. The cost of insurance for a CLS550 is higher than the average vehicle, with full coverage averaging around $1,940 a year or $162 a month. The insurance rate for this vehicle is high due to its high value and potentially expensive repair costs.

The CLS550 is a high-value vehicle, with an original MSRP of about $15,000 higher than comparable models. This higher value means that insurance companies see a bigger risk and potential payout in the event that the car is damaged or totaled. Additionally, the rarity of the CLS550 may contribute to its high insurance cost. As a luxury vehicle, it may also be targeted by thieves, which increases the risk of theft and, consequently, insurance rates.

The repair costs for the CLS550 can be expensive due to the high cost of replacement parts. For example, the air suspension system, while praised for its durability, can be costly to repair or replace. Additionally, the car's advanced features, such as the AMG exhaust and 7G-tronic transmission, may also contribute to higher repair costs. The cost of maintenance and repairs is a factor that insurance companies consider when setting rates, and the CLS550's potentially high repair costs are reflected in its insurance premiums.

The age of the CLS550 can also impact insurance rates, with older models generally costing less to insure. For example, the insurance rates for a 2018 CLS550 are $1,940, while a 2010 model is $1,506, a difference of $434. This may be due to the assumption that older vehicles are less likely to be driven as frequently or aggressively as newer models, reducing the risk of accidents and claims.

Overall, the high insurance costs associated with the CLS550 can be attributed to its high value, the potential for expensive repair costs, and the rarity of the vehicle. These factors contribute to insurance companies' perception of risk, resulting in higher premiums for this particular model.

The rarity of the 12+ CLS

The 12+ CLS, referring to the CLS550 model with a 12-cylinder engine, is a rare variant within the CLS-class. This rarity impacts insurance costs in several ways. Firstly, it affects the availability of replacement parts. Due to the limited production and specialised nature of the 12-cylinder engine, finding compatible replacement parts can be more challenging and expensive. This drives up the cost of repairs, which is reflected in higher insurance premiums.

Secondly, the rarity of the 12+ CLS influences the risk assessment by insurance companies. Insurance providers base their rates on statistical analysis and the likelihood of claims being made. The rarer a vehicle is, the less data they have to work with, and the more cautious they may be in setting premiums. In the case of the 12+ CLS, its high-performance engine and unique specifications may lead insurance companies to perceive it as a higher-risk vehicle, resulting in higher insurance rates.

Additionally, the specialised nature of the 12+ CLS's engine and components can contribute to its rarity and impact insurance costs. The availability of specialised mechanics and repair facilities may be limited, increasing the cost of maintenance and repairs. This, in turn, can influence insurance providers to set higher premiums to account for potential repair costs in the event of a claim.

Furthermore, the rarity of the 12+ CLS can affect its resale value and overall desirability. Rare vehicles often have a smaller pool of potential buyers, which can impact the vehicle's resale value and the insurance company's assessment of its worth. A higher-valued vehicle typically leads to higher insurance rates, as the potential payout for the insurance company is greater in the event of a total loss.

It's important to note that insurance rates for the CLS550 can vary depending on factors such as location, driving history, and the chosen insurance provider. However, the rarity of the 12+ CLS engine variant is a significant contributor to the higher insurance costs associated with this vehicle.

The driver's age and experience

The impact of age and experience on insurance rates is supported by statistical data. According to the Insurance Institute for Highway Safety, drivers aged 16 to 19 are four times more likely to be involved in car accidents than older drivers. This age group accounts for 7% of all fatal accidents while only representing 4% of drivers. Consequently, insurance companies view younger drivers as higher-risk and charge higher premiums to offset potential claims.

While insurance rates generally decrease with age and experience, they may start to increase again for older drivers. This trend is observed in drivers over 60 or 70, with rates rising due to potential physical, cognitive, or visual impairments that can affect driving abilities. However, it's important to note that age is not the sole factor in determining insurance rates, and other considerations, such as gender, location, and driving history, also play a role.

In the context of insuring a CLS550, the driver's age and experience may interact with other factors to influence the insurance rate. The CLS550 is a luxury vehicle known for its performance and advanced features, and insurance companies may perceive it as a higher-risk vehicle. The rarity of the CLS550 could also contribute to higher insurance rates, as replacement parts may be more expensive and difficult to source. Additionally, the vehicle's performance and horsepower could be factors in determining the insurance rate, as suggested by some owners.

Overall, the driver's age and experience significantly influence insurance rates, with younger and less experienced drivers typically facing higher premiums. This trend is likely to be more pronounced when insuring a vehicle like the CLS550, which may already attract higher insurance rates due to its luxury status and performance characteristics.

The driver's location and driving history

The cost of insurance for a CLS550 can vary depending on several factors, including the driver's location and driving history.

The Driver's Location

Insurance companies consider the driver's location when determining insurance rates. For example, the cost of insurance in urban areas is generally higher than in rural areas due to the increased risk of accidents, theft, and vandalism. Additionally, insurance rates can vary by state, with each state having different regulations and requirements for auto insurance. The zip code can also impact insurance premiums, as certain areas may be associated with higher or lower insurance risks.

The Driver's Driving History

A driver's history is one of the most critical factors in determining insurance rates. Insurance companies view driving records to assess the risk associated with insuring a particular driver. A clean driving record typically results in lower insurance premiums, while a history of accidents, traffic violations, or DUIs can significantly increase insurance costs. Minor traffic violations, such as speeding tickets, can raise insurance rates by an average of 21%, while more severe incidents, like DUIs, can increase rates by up to 92% or even double the cost of insurance. Insurance companies use a point system to evaluate the severity of violations, and accumulating a certain number of points can lead to license suspension or higher insurance rates.

It is important to note that insurance companies may not always check a driver's record when renewing a policy, but they typically do so when issuing a new policy. Therefore, maintaining a clean driving record and avoiding violations are crucial for obtaining the best insurance rates.

The trim level, upgrades and coverage level

The trim level, upgrades, and coverage level you choose for your CLS550 will all have an impact on your insurance costs.

Trim Level

The trim level you choose for your CLS550 will affect your insurance rate. Opting for a higher trim level will cost more upfront and will add to your monthly expenses. For example, the E Amg 53 costs $423 more per year to insure than the S 350.

Upgrades

Upgrades such as additional safety features can help lower your insurance costs. The more safety features your CLS550 has, the more likely it is that you can earn a discount on your insurance. Examples of safety features include ESP w/Crosswind Assist Electronic Stability Control (ESC) and outboard front lap and shoulder safety belts.

Coverage Level

The coverage level you select will also impact your insurance costs. If you are financing a CLS550, most lenders will require you to carry higher coverage options, including comprehensive coverage. Luxury vehicles like the CLS550 typically have higher insurance rates due to their higher value and potentially expensive repair costs.

It is recommended to obtain quotes from multiple insurance companies to compare rates and find the most competitive coverage. The insurance coverage you need for a CLS550 is similar to that of other vehicles and typically includes liability coverage, which is required by law in most states.

Other factors that can impact your insurance costs include your location, driving history, age, and the age of your vehicle.

Frequently asked questions