Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years’ experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent Benji Carr

UPDATED: Oct 6, 2015

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Trying to find cheaper insurance for a BMW M5 can normally be a lot of work, but you can follow these tips to make it easier.

There is a right way and a wrong way to shop for car insurance and you need to know the quickest way to quote coverages for a BMW and obtain the lowest possible price.

The BMW M5 insurance rate equation

An important part of buying insurance is that you know the different types of things that go into determining your auto insurance rates. When you know what positively or negatively determines premiums, this empowers consumers to make smart changes that can help you get big savings.

The factors shown below are a partial list of the pieces used by your company to calculate rates.

  • Which gender costs less? – Over the last 30 years, statistics show women are more cautious behind the wheel. It does not mean women are BETTER drivers than men. They both have accidents at a similar rate, but the male of the species tend to have more serious accidents. In addition to higher claims, males also receive more major tickets like driving under the influence (DUI). Teenage male drivers cause the most accidents and therefore are the most expensive to insure.
  • City dwellers may pay more – Having an address in a rural area may provide you with better prices when shopping for auto insurance. Fewer drivers on the road means reduced accidents in addition to fewer liability claims. People in densly populated areas have more traffic problems and longer commute times. Higher commute times can result in more accidents.
  • Extra coverages push up rates – Insurance policies have a lot of extra bells and whistles that can waste your money but may not be useful. Insurance for vanishing deductibles, accidental death, and extra equipment coverage are probably not needed. They may seem good initially, but now you might not need them so think about removing them and cutting costs.
  • Teenagers are high risk – Beginning drivers are statistically shown to be inattentive and easily distracted when behind the wheel and because of this, their auto insurance rates are much higher. Older people are more cautious drivers, file fewer claims and tend to be get fewer driving tickets.
  • Multi-policy discounts can save money – Most major insurers give lower prices to buyers who have multiple policies with them in the form of a multi-policy discount. Even if you qualify for this discount already, it’s in your best interest to compare other insurance prices to guarantee you are still saving the most. You may still save more without the discount by splitting coverages up.
  • Less chance of injury means lower auto insurance rates – Vehicles that have high safety ratings are cheaper to insure. These vehicles help reduce the chance of injuries in an accident and reduced instances of injuries means less money paid by your insurance company passed on to you as lower rates. If the BMW M5 is rated at least an “acceptable” rating on the Insurance Institute for Highway Safety website you are probably receiving a discount.
  • Higher premiums for specific jobs – Occupational choices like military personnelairline pilots and stock brokers generally pay higher rates than average due to intense work-related stress and long work days. On the other hand, professions such as farmers, students and homemakers have the lowest average rates on M5 coverage.

The best way to get rate comparisons is to realize most of the bigger providers have advanced systems to compare rate quotes. The one thing you need to do is give them rating details like distance driven, how old drivers are, your general credit rating, and whether you are married. The data is instantly sent to insurance companies and you receive quotes very quickly.

Enter your zip code below to view companies that have cheap auto insurance rates.

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Don’t believe everything you hear

Consumers can’t avoid all the ads that promise big savings for switching from companies such as State Farm and Allstate. They all seem to seem to make the promise about how much you will save just by moving your coverage.

How can each company claim to save you money? You have to listen carefully.

Companies quote the lowest rates for the type of customer that will add to their bottom line. For example, a profitable insured could be between the ages of 40 and 55, owns a home, and chooses high deductibles. Anyone who matches those parameters receives the best auto insurance rates and will also save if they switch.

Potential insureds who don’t measure up to those criteria will be charged a higher premium which usually ends up with the prospect going elsewhere. The wording the ads use say “customers who switch” not “everyone who quotes” save money. This is how companies can truthfully make those claims.

This really emphasizes why it is so important to do a price quote comparison at every renewal. You cannot predict the company that will have the best rates for your profile.

Auto Insurance Discounts

Auto insurance is not inexpensive, but you might find some hidden discounts that many people don’t even know exist. A few discounts will be applied at the time of quoting, but a few must be specifically requested prior to receiving the credit.

  • Save over 55 – Drivers over the age of 55 may receive a small decrease in premiums on M5 coverage.
  • Anti-lock Brake System – Cars and trucks equipped with ABS or steering control are much safer to drive and therefore earn up to a 10% discount.
  • Air Bag Discount – Factory air bags or motorized seat belts may qualify for discounts of more than 20%.
  • New Vehicle Savings – Buying insurance on a new vehicle can save you some money due to better safety requirements for new vehicles.
  • Low Mileage Discounts – Keeping the miles down on your BMW could be rewarded with cheaper prices.
  • Telematics Data – Policyholders that allow driving data collection to spy on driving habits by installing a telematics device such as Snapshot from Progressive or Drivewise from Allstate could save a few bucks as long as they are good drivers.
  • Theft Deterent – Vehicles that have factory alarm systems and tracking devices are stolen less frequently and will save you 10% or more.
  • Accident Forgiveness – Not really a discount, but some insurance companies will let one accident slide without raising rates so long as you are claim-free before the accident.

It’s important to note that most discount credits are not given the the whole policy. A few only apply to the cost of specific coverages such as collision or personal injury protection. Even though the math looks like you can get free auto insurance, companies don’t profit that way. But any discount will bring down the cost of your policy.

A list of auto insurance companies and the discounts they provide are outlined below.

  • GEICO may have discounts that include membership and employees, air bags, multi-vehicle, anti-lock brakes, good student, and driver training.
  • Travelers policyholders can earn discounts including new car, multi-policy, home ownership, hybrid/electric vehicle, and payment discounts.
  • Nationwide has savings for multi-policy, easy pay, accident-free, defensive driving, anti-theft, and good student.
  • Farmers Insurance has discounts for switch companies, good student, homeowner, bundle discounts, and multi-car.
  • Esurance may include discounts for defensive driver, Switch & Save, renters, paid-in-full, good student, and online quote.
  • State Farm offers discounts including student away at school, anti-theft, multiple policy, good student, defensive driving training, safe vehicle, and accident-free.
  • Progressive may offer discounts for multi-policy, online signing, good student, homeowner, continuous coverage, online quote discount, and multi-vehicle.
  • Mercury Insurance includes discounts for type of vehicle, good driver, location of vehicle, annual mileage, low natural disaster claims, good student, and ease of repair.

Before you buy a policy, ask each company or agent how you can save money. Some of the earlier mentioned discounts may not apply in your area. To view companies with the best auto insurance discounts, follow this link.

Tailor your insurance coverage to you

When it comes to choosing the right insurance coverage for your personal vehicles, there really is no “best” method to buy coverage. Everyone’s situation is a little different.

For example, these questions might point out whether or not you might need an agent’s assistance.

  • Am I covered if I hit a deer?
  • Can I afford to buy a different vehicle if my 2007 BMW M5 is totaled?
  • Will filing a claim cost me more?
  • Why do I need rental car insurance?
  • How high should my medical payments coverage be?
  • Should I bundle my homeowners policy with my auto?
  • How much can I save by bundling my policies?
  • Do I have newly-aquired coverage?
  • Do I really need UM/UIM coverage?
  • Do I need added coverage for expensive stereo equipment?

If you’re not sure about those questions but you know they apply to you, you might consider talking to a licensed insurance agent. If you want to speak to an agent in your area, fill out this quick form. It’s fast, doesn’t cost anything and can provide invaluable advice.

Enter your zip code below to view companies that have cheap auto insurance rates.

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Insurance coverage basics

Learning about specific coverages of your policy can help you determine the right coverages at the best deductibles and correct limits. Insurance terms can be difficult to understand and coverage can change by endorsement.

Medical expense insurance

Personal Injury Protection (PIP) and medical payments coverage provide coverage for short-term medical expenses for doctor visits, funeral costs, hospital visits and ambulance fees. They can be used to cover expenses not covered by your health insurance plan or if you are not covered by health insurance. It covers not only the driver but also the vehicle occupants and also covers being hit by a car walking across the street. Personal injury protection coverage is not universally available but it provides additional coverages not offered by medical payments coverage

Comprehensive (Other than Collision)

This covers damage OTHER than collision with another vehicle or object. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.

Comprehensive insurance covers claims like fire damage, hitting a bird, falling objects and damage from flooding. The maximum amount your insurance company will pay is the actual cash value, so if the vehicle’s value is low it’s probably time to drop comprehensive insurance.

Auto liability

This coverage will cover injuries or damage you cause to other people or property. It protects YOU against other people’s claims. It does not cover damage sustained by your vehicle in an accident.

It consists of three limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. As an example, you may have limits of 100/300/100 that translate to $100,000 bodily injury coverage, $300,000 for the entire accident, and a limit of $100,000 paid for damaged property. Another option is a combined single limit or CSL which provides one coverage limit rather than limiting it on a per person basis.

Liability can pay for things like court costs, emergency aid, bail bonds, repair bills for other people’s vehicles and medical expenses. The amount of liability coverage you purchase is a decision to put some thought into, but buy higher limits if possible.

Protection from uninsured/underinsured drivers

Uninsured or Underinsured Motorist coverage gives you protection from other motorists when they do not carry enough liability coverage. This coverage pays for hospital bills for your injuries as well as damage to your BMW M5.

Due to the fact that many drivers only purchase the least amount of liability that is required, their limits can quickly be used up. That’s why carrying high Uninsured/Underinsured Motorist coverage is important protection for you and your family. Most of the time these limits are similar to your liability insurance amounts.

Auto collision coverage

This pays to fix your vehicle from damage from colliding with another vehicle or an object, but not an animal. You will need to pay your deductible then the remaining damage will be paid by your insurance company.

Collision insurance covers things like hitting a parking meter, sustaining damage from a pot hole, colliding with a tree and hitting a mailbox. Paying for collision coverage can be pricey, so analyze the benefit of dropping coverage from vehicles that are older. Drivers also have the option to increase the deductible to bring the cost down.

In Summary

Some car insurance companies don’t offer rate quotes online and these small insurance companies provide coverage only through independent insurance agents. Cheap 2007 BMW M5 insurance can be purchased online in addition to local insurance agencies, so you should be comparing quotes from both to have the best chance of lowering rates.

Consumers who switch companies do it for many reasons like questionable increases in premium, high rates after DUI convictions, delays in responding to claim requests and even being labeled a high risk driver. Regardless of your reason for switching companies, finding a new car insurance company can be easier than you think.

When trying to cut insurance costs, make sure you don’t sacrifice coverage to reduce premiums. There are too many instances where consumers will sacrifice physical damage coverage to discover at claim time that their decision to reduce coverage ended up costing them more. Your goal is to buy a smart amount of coverage at an affordable rate, but do not skimp to save money.

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