Explore Car Insurance

Kenneth YoungWritten by Kenneth Young
Reviewed by Adrian Taylor
Last updated 15/02/24

Key takeaways

‘Luxury car insurance’ isn’t a specific product that you can purchase for your prestige car (except from very specialist insurers). However, you can take out standard car insurance (like comprehensive) to insure your vehicle. There are a few important things to keep in mind when insuring your luxury vehicle, including:

  • Insurance providers generally classify a luxury car in different ways, so you’ll need to check your chosen insurer’s approach before you insure your car.
  • Although you can cover your luxury car with standard car insurance, not all insurers may offer to insure your luxury vehicle.
  • You’ll need to know how much cover you’ll get through your chosen policy, particularly when you have a high value.

Adrian Taylor, Executive General Manager of General Insurance

Insurance tips for your luxury vehicle from Adrian Taylor

As Compare the Market’s car insurance expert, Adrian Taylor has these tips for luxury car owners navigating insurance for their vehicle.

Install security devices in your car for added safeguarding

Installing immobilisers and car alarms (if your vehicle doesn’t come with them already) can not only help deter thieves, but it may help lower your insurance premiums.

Restrict younger drivers from getting behind the wheel

Young drivers cost more to insure, so you can lower your insurance costs if you restrict the age of drivers where possible. This means you wouldn’t let anyone below a certain age, such as 25, drive your prestigious car.

How insurance for a luxury car works

Man driving a car covered by luxury car insurance

What does insurance for luxury cars cover?

Luxury and prestige car owners can benefit from having comprehensive car insurance which is the highest level of car cover. While specific features differ between insurers, some things that are commonly covered by car insurance can include:

  • Damage to your own vehicle. If your vehicle is damaged in an accident, your policy can cover the repair costs.
  • Loss or damage by fire. Your car is covered if it’s damaged or destroyed by a fire.
  • Storm or flood damage. Comprehensive car insurance may cover the repair or replacement of your vehicle if it’s damaged by a flood or storm (there may be exclusions and limitations to this cover).
  • Damage to another vehicle or property. If your car causes damage to another person’s vehicle or property, your responsibility for the repair costs is typically covered.
  • Theft or attempted theft. Your car insurance may cover the cost of damage to your vehicle from attempted theft or a replacement if it’s stolen.
  • Vandalism or malicious act. If your car is damaged by vandalism or other deliberate damage, your insurance provider may cover the repairs.
  • Windscreen or window glass damage. Most insurers offer cover for the cost of windscreen or window glass repairs in the insurance policy or offer this as an optional extra, with some even offering this feature excess-free.
  • Towing. Car insurance can cover towing costs if your car is damaged in a road accident (some insurers may limit cover to within a certain distance of home or the repair shop).

You should always read the Product Disclosure Statement (PDS) of any insurance product before purchasing, as the PDS will include the full details of the limitations, exclusions, terms and conditions of your cover. You should also read the Target Market Determination (TMD) to check whether a policy is suitable for you – and your luxury vehicle.

How much does insurance for a prestige car cost?

The cost of car insurance for luxury cars is likely to be expensive. One of the contributing factors could be that specialised repairs and replacement parts can be quite hard to source and expensive (usually imported). As with most insurers, having full comprehensive cover for your luxury vehicle will always be the more expensive option over Third Party Property Damage and Third Party Fire and Theft, as it provides the highest level of cover available.

Your car insurance premiums are also heavily influenced by several factors that are individual to you, like:

  • Your vehicle’s age, make and model
  • Any modifications to the vehicle
  • Your claims history
  • Where the vehicle is parked at night

What is standard comprehensive insurance with an agreed value?

Agreed or market value is a payout option from an insurer for the total loss of the insured vehicle. For a slightly higher premium, you can insure your luxury car for an agreed value, instead of the market value that car insurance policies usually use. Given the value of prestige vehicles and luxury cars, you may opt for an agreed value as these vehicles can be expensive to repair and may appreciate in value over time.
 

Why should I get insurance for my prestige car?

The same reason you should get car insurance for any vehicle: to give you financial protection for when something goes wrong. Whether your expensive car is parked in your home garage or on the road, a prestige and luxury car is a substantial investment you’ll want to protect.
 

Further information

Woman standing beside a vintage car

What is considered a luxury or prestige car?

A prestige or luxury car can be a highly engineered performance vehicle or a vehicle with a high-end market value. These can include vehicles with specific modifications, or made by famous marques such as Ferrari, Lamborghini, Porsche, Aston Martin, Rolls Royce, Bugatti and more.

Some key factors that insurers consider when classifying your car as luxury or prestige can include (but aren’t limited to) the following:

  • The value of the car, which can be extremely expensive
  • The rarity of the vehicle, as several supercars are produced in limited amounts
  • The performance and specs of the vehicle
  • If the vehicle is subject to luxury car tax, which can also include more accessible brands like Volvo and Toyota.

Can I get insurance for my luxury car from every provider?

Not all insurers will agree to cover high-end luxury cars (especially without agreed value cover), even with their standard policies. This can be for several reasons, including:

  • The value of the vehicle is so high the insurance company may find it prohibitive to insure it
  • The vehicle is so rare the insurance company doesn’t have enough data on it to calculate a premium
  • Replacement parts are difficult or expensive to source.

This is why you may need to go to a specialty insurance provider to get cover for your high-end vehicle.
 

How can I save on my prestige car insurance premiums?

Even the most basic luxury or prestige car models will typically incur significant insurance fees on top of a hefty price tag and upkeep costs. However, there are some very simple ways you can save on insuring your high-powered beauty.

These include:

  • Securing your car. Keeping your luxury vehicle in a garage or other secured car park will both help to protect it from theft and potentially reduce the cost of your car insurance.
  • Choosing a driver age restriction. Restricting the age of the youngest driver could also bring down the cost of the premium.
  • Upping your excess. One common way to reduce your premiums is to increase your excess. Just keep in mind that whatever amount you choose as your excess is what you’ll need to pay if you make a claim.
  • Paying annually. Most insurance providers offer lower premiums if you choose to pay them as one, annual sum instead of regular instalments.

Adrian Taylor, Executive General Manager of General Insurance

Meet our car insurance expert, Adrian Taylor

As the Executive General Manager of General Insurance at Compare the Market, Adrian Taylor has over 13 years’ experience in the financial services industry. Adrian specialises in customer experience and is dedicated to helping customers better understand insurance products so they can save money on their household bills.


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