What does luxury car insurance cover?
In essence, luxury car insurance is like comprehensive car insurance with all of the add-ons and extras available. Think of it as the premium, top-of-the-line insurance that matches your luxury car perfectly. Some of the benefits included in a prestige cover are:
- Parts imports – The majority of luxury cars require imported parts, with some luxury insurers covering express shipping to ensure the parts arrive as quickly as possible.
- Modifications and accessories – Some luxury cars come with modifications and accessories that aren’t covered normally in conventional policies. Luxury car insurance ensures that all of the mods you make to your vehicle are fully covered.
- Choose your own mechanic – Considering that a luxury car is a huge asset, most car owners want a trusted mechanic to work on their prized possessions. With a luxury car policy, you can choose your own mechanic so you can feel confident that your vehicle is well taken care of.
- Agreed value – Compared to mainstream policies wherein the car owner chooses between an agreed value or a market value, a luxury car policy offers only the agreed value for the insured amount. This value remains fixed throughout the policy’s lifespan.
- Discounts – Car collectors will be delighted to know that luxury car insurance provides huge discounts for insuring multiple cars with the same insurer. The best part is that you can tailor the policy according to each individual car.
- Salvage rights – In case your vehicle gets written off, a luxury policy will usually give you salvage rights to keep the car. Of course, this will depend on the car’s age and should always be double-checked with your insurer to confirm.
- Car upgrades – Car enthusiasts love making upgrades and with luxury insurance policies, it makes it easier to change insurance. Some even allow you to automatically transfer your policy for a period of time so that your vehicles are always insured.
Aside from compulsory CTP insurance, conventional car insurance policies typically include comprehensive insurance and third-party property (with or without fire theft). Third-party car insurance is the least recommended for luxury car owners since it doesn’t cover damages due to accident. Comprehensive car insurance may also be a consideration, but keep in mind that it won’t cover you for all the add-ons and extras you may need for your prestige vehicle. This is why a tailored luxury car insurance is the safest choice for luxury car owners
Tips on saving on your luxury car insurance
With the relatively high prices of luxury car insurance, you may be tempted at finding a mainstream insurer with a comparable comprehensive policy. However, this is not the most ideal approach as it can get more expensive and you won’t be availing package discounts for added benefits. The good news is that you can save on your luxury car insurance by following a few simple tips like the ones we’ve listed below:
- Improve your security – Thieves and vandals are naturally drawn to luxury cars and your vehicle is always a prime target. Installing car alarms, immobilisers, and just overall securing your vehicle can go a long way towards reducing luxury car insurance premiums.
- Defensive driving – Defensive driving is a skill that every luxury car owner must possess. By obtaining a defensive driver certification, insurers will feel more confident about you not crashing your vehicle and thus offer you discounts along the way.
Age – This might come as a surprise, but young drivers typically pay more for insurance premiums than older drivers. Restricting the driver’s age is also a great way to save on your insurance, especially if you own multiple luxury vehicles.