The expenses of owning a luxury car can go beyond being able to afford the vehicle itself. You also have to think about its maintenance and insurance coverage. It’s just not practical or wise to own an expensive sports car without having it insured — it’s just like putting your cash into a bonfire. Even the smallest repair can cost you plenty and an insurance policy will help ease the ache in your wallet somehow.
It goes without saying that insurance for luxury or exotic vehicles is definitely expensive. There are several reasons for this. As mentioned above, the repairs are way costlier compared to cheaper vehicles. For instance, if your vehicle is up for a Porsche service, it will also require original parts for replacements, and these parts are usually imported from other countries. Special tools are required to fix these vehicles and have to be done by technicians who have specialized training to work on these pricey cars. These technicians charge more than your friendly neighborhood car repairmen.
Another reason is that these high-end cars do not depreciate in terms of market price, unlike the more economic models. If the car in question is a limited edition, then the value can increase even more over the years. Also, these cars, especially the fast sports vehicles, are likely owned by younger drivers with riskier driving habits, which make them high-risk drivers, therefore classified as a high insurance risk.
So now that you’re aware of this, it’s time to enhance the security of your high-end car. Take note of these things you must know about the insurance for your luxury vehicle.
Get Comprehensive Coverage
It’s not enough to just have the standard third party car insurance policy. If you own a luxury car, it’s essential to get more comprehensive coverage. Of course, expect the premiums to be much higher, but the additional expense is worth it when your car gets damaged due to mishap or natural calamities such as earthquake, fire, or thunder.
Pay for Necessary Add-ons
As part of having a comprehensive policy, you can get more security for your car by availing add-ons. These include roadside assistance, accessory coverage, and zero depreciation. An accessory coverage will help you out if you have valuable stuff in the car during the time it gets damaged. Zero depreciation covers the external damages to your vehicle and enables to have the car repaired whenever it’s needed. Lastly, roadside assistance gives you that extra hand whenever you encounter mishaps while driving.
Research and Compare Premiums
Especially since you are going to pay an even more expensive premium given the type of vehicle that you own, it’s more important to be smart when it comes to choosing the best car insurance policy. There’s always one that will offer you a better deal, whether it’s more affordable rates or better add-ons. The car dealer will probably offer you a policy plan, but as a luxury car owner, you can definitely afford to be picky when it comes to your insurance. Get at least three quotes from leading insurance companies and then research and compare them.
Make Sure to Keep Your Policy Active
You actually have to plan for this before you even take the car out of the showroom. When you set down your monthly payments for your luxury vehicle, be sure to allot something for your insurance premiums as well. Also, make sure to remember to renew your policy way before the deadline to avoid any problems. You don’t want to run the risk of being liable for all expenses in case something bad happens to your vehicle.
Invest in Anti-theft Devices
While it’s true that the security features of luxury vehicles are greater compared to more modest cars, you should still have anti-theft devices installed in yours. Fortunately, this is something that your dealer can already do when you buy your vehicle. Not only will this decreases the chances of the car getting stolen; it will also make the insurance company ask lesser premiums because the risks for theft are considerably lower.
Your parking location also plays a big factor here. If you park in a secure location, plus have anti-theft devices on your vehicle, you can enjoy discounts on your premium rate.
The premium for your luxury vehicle coverage will depend on several factors, but one of the major ones is your record as a driver and your credit history. If you have a clean driving record and you have minimal, or better yet no accidents or traffic violations, this can lower your premiums considerably. Keeping your payments on time can also lower your luxury car premium.