• Luxury car insurance vs. standard car insurance

    September 2nd, 2021Christopher Johnson

    As you probably suspected, a Ferrari or a Porsche is not insured in the same way as a Honda Civic. And just like high-end homes, luxury cars require special attention; both in the garage and in insurance!

    In this article, Assurances Multi-Risques will explain the various benefits of choosing an insurer that specializes in luxury cars rather than a standard car insurer.

    You will also find advice on how to protect your four-wheeled treasure!

    Can a luxury car be insured by any insurance company?

    Unfortunately, not all car insurance companies can bear the same degree of risk. Some insurers may have reservations about certain makes of vehicles, such as Bentley, Lamborghini, Maserati and Rolls-Royce.

    Car insurance companies all have different standards when it comes to the maximum value they will or will not cover for a vehicle.

    So, which insurer should you choose?

    Insurer X does not necessarily have the same definition of a “luxury car” as Insurer Y. As a result, it is possible that one insurer will agree to cover it with special insurance, while others will cover it like any other vehicle, without any benefits or special features for your particular situation.

    So, this is our first piece of advice: don’t hesitate to deal with an independent insurance broker. They have extensive knowledge of the various insurers specializing in luxury cars.

    A broker will also be able to compare the various proposals for you to guarantee you the perfect coverage based on your needs, the details of your situation and your vehicle.

    Luxury car insurance vs. standard insurance

    Dealing with a specialty insurer instead of a standard car insurer is like booking a room at The Queen Elizabeth instead of a small roadside motel. The quality of service and comfort cannot be compared!

    Here are the key advantages of choosing specialized luxury car insurance:

    Replacement cost insurance

    A clause called “agreed value for the year” is included in many luxury car insurance policies. In the event of a theft or total loss following an accident, the insurer will compensate you according to the replacement value of your car, rather than according to an expert’s estimate of its current value.

    Since luxury cars depreciate much faster than standard vehicles, this type of clause would protect you from losing several thousand dollars compared to the purchase price or the balance of your lease. This is a considerable benefit!

    A significantly higher “loss of use” benefit

    In the event of a claim, the loss of use benefit provides a budget for you to rent a replacement vehicle while your car is being repaired or until you receive compensation.

    By choosing an insurer that specializes in luxury cars, you can be sure that you will get a higher loss of use benefit than with standard insurance. If you make a claim, you will be able to drive a vehicle that at least meets your usual level of comfort.

    The choice of garage and parts

    In the event of an accident, most insurers will allow you to choose the garage where the repairs will be made. In addition, you can stipulate that only original replacement parts from the manufacturer may be used.

    Additional advantageous options

    You will have the opportunity to purchase some optional benefits that may be of interest to you. For example:

    • No deductible for lost or replaced keys or changed locks or airbags;
    • Coverage for vehicles not owned by the insured;
    • Variable deductibles;
    • Valet service that will deliver a courtesy vehicle to the location of your choice;
    • And more!

     

    How much does an insurance premium for a luxury car cost?

    Insuring a luxury vehicle is certainly more expensive than insuring a standard car. But you can still save money! Here are some tips from Assurances Multi-Risques:

    • Work with a broker that specializes in the luxury vehicle market;
    • Consider a variety of options for your deductibles. In your case, having a high deductible will be unavoidable, but it could be much more advantageous in the event of a claim;
    • Have a tracking system installed; many insurers will require it, but it gives you extra protection in case of theft;
    • Assess the difference between replacement value and compensation without depreciation. This will help you decide which risk you prefer to take and what is most cost-effective for you in the short and long term;
    • Combine your home and car insurance with the same insurer.

    Final thoughts

    The luxury car insurance market is no different than any other luxury product market.

    Although car insurance is a standardized product, some coverages are at the discretion of the insurer. Remember that choosing to insure your high-value vehicle with a standard insurance company and a traditional policy will always cost you more in the event of a claim.

    If you pay top dollar to enjoy the luxury and comfort of a luxury car, it is logical that you also choose an insurance policy that will guarantee you priority treatment, easy compensation and optimal protection. You get what you pay for!

    To better understand your situation and to get sound advice, contact an independent insurance broker; they will find the BEST insurer for you while you hit the road!