If you rear end a luxury car, BMW, Mercedes etc and the accident is your fault, does it increase your insurance more than other cars?

No, of course not.
An accident may not raise your rates anyway.

The insurance is based on cost. If they have to pay out $5000 to fix an expensive car vs $1000 for a cheap car, they are more likely to raise your rates more due to the bigger pay out.

It doesn't really matter what car you rear end, it could be an old clunker. You've just shown the insurance company that you are a poor driver and therefore a higher risk.

Not necessarily, hit a high end car like that and the repairs could exceed your liability limits, if you have the minimum amount of insurance.