• Luxury car: what type of car insurance should you choose?

    23 November 2018Christopher Johnson

    Porsche, Ferrari, Aston Martin, Jaguar, Bentley: such luxury cars are any car amateur’s dream. Driving a powerful luxury car is a privilege, an indulgence for all the hard work that has led to your professional success. A high-end car, however, must be protected by the right type of insurance contract! Assurances Multi-Risques would like to offer you a few pointers on that subject.

     

    What type of insurer should you choose when you own a luxury car?

    First tip: contact an independent insurance broker who deals with several insurance companies, and who will be able to determine which insurer is right for you. Why? Because insurer X’s definition of a “luxury car” is not necessarily that of insurer Y. Some insurers will offer you a special type of contract designed for luxury vehicles while others will consider your car as any other car, and will not offer you any special benefit in return.

    What is the difference between regular car insurance and luxury car insurance? Well, it’s a bit like the difference between a roadside motel room and a room at the Queen Elizabeth Hotel. The services and comfort offered are worlds apart! For example, in case of accident, a regular car insurer will offer you an ordinary replacement rental vehicle because the maximum amount allowed in this instance is lower than that a luxury car insurer. If you are dealing with a luxury car insurer, however, you will be offered a temporary replacement vehicle that meets your usual comfort and performance standards.

    Therefore, in order to avoid unpleasant surprises and problems when making a claim, you must make sure that your insurer fully understands your way of life!

     

    What if your insurer refuses to cover your luxury car?

    Not all insurers are equipped to deal with the financial risks associated with luxury vehicles. Bentley, Lamborghini, Maserati, and Rolls Royce are some of the car brands that give cold feet to a number of car insurers. Don’t worry, however, since there are insurers out there willing to insure luxury vehicles! Because the maximum coverage allowance carried by insurers can vary, you will increase your chances of finding the right insurer if you ask an insurance broker to do the research work for you.

     

    A few tips on how to save on your luxury car insurance premium :

    Luxury car insurance will certainly be more costly than standard car insurance, but here are a few tips on how to save money on this type of coverage :

    • Deal with a specialized luxury car insurance broker;
    • Evaluate your options regarding deductibles: high deductibles are likely unavoidable in your case;
    • Have a tracking device installed in your car: many insurers will insist on this, and the device will also be helpful if the car is ever stolen;
    • Compare the difference between a replacement value coverage and a waiver of depreciation coverage: decide which of the two options is preferable for you both in the short and in the long term;
    • Entrust your home and car insurance coverage to the same insurer.

    Lastly, understand that luxury car insurance is no different from other luxury goods insurance products. Even if car insurance is a rather standardized product nowadays, coverage levels and services can vary widely from one insurer to the other. As you usually get what you pay for, let an independent broker look for THE best specialized insurance product for you while you rev up your engine!