Whether it’s a comfy, luxurious ride or a sporty beast with a powerful engine, there is a variety of cars that are a cut above the rest. However, prestige vehicles are very expensive, which means it’s important to understand how car insurance can cover your precious set of wheels.
There is no definitive list for what constitutes a luxury or prestige car but it often comes down to the eye of the beholder plus the price tag and the make and model. Your insurance provider will be interested to know the car’s market value and whether it’s used for regular commuting or as a weekend cruiser.
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.
For insurers, it’s not as simple as classifying luxury or prestige by the brand as many companies manufacture standard vehicles for mass consumption and very expensive, performance or luxury vehicles. So, when considering if a car is a luxury, it’s best to consider some of the key factors your insurer may take into account.
These key factors can include but are not limited to the following:
If you own a high-performance car, you’ll need insurance that matches the prestige of your luxury ride.
For the most part, prestige car insurance is a standard car insurance policy that’s been taken out for a prestige or luxury vehicle. While many car insurance brands can cover some high-performance vehicles, there are specialist providers which offer specific prestige car insurance products that are slightly different to the regular levels of car insurance cover.
Agreed or market value is a payout option from an insurer for the total loss of the insured vehicle. For an insurer considering taking on any luxury or classic car on an agreed value basis, establishing a value for the vehicle forms the basis on which the risk is assessed to determine whether the provider can insure it, and if so, with what limitations, and at how high a premium.
Having an agreed value written into any policy for expensive and rare cars is seen as desirable by some owners as these vehicles can be expensive to repair and may appreciate in value over time.
Luxury and prestige car owners can benefit from having comprehensive car insurance which is the highest level of car cover. While features differ between providers, common coverage for all cars can include:
You should always read the Product Disclosure Statement (PDS) of any insurance product before purchasing. The PDS will include the full details of the limitations, exclusions, terms and conditions of your cover.
The cost of car insurance for luxury cars is likely to be expensive due mainly to specialised repairs and replacement parts being quite hard to source and expensive (usually imported). As with most providers, 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:
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.
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:
Not all insurers will cover high-end luxury cars (especially without agreed value cover) so car enthusiasts may get limited results from motor vehicle insurance comparison services. There are multiple reasons this can happen, including:
You may need to go to a specialty insurance group if you can’t get any quotes from regular car insurance providers for your dream machine.
Repair and replacement costs will vary depending on what type of prestige or luxury car you have, but they will probably be pricey. As these vehicles are usually more expensive than conventional, economy vehicles, you can expect the replacement costs to reflect this.
Repair costs can also be expensive as sourcing replacement parts for prestige and luxury cars may be more difficult and can therefore up your repair costs.
Comprehensive car insurance typically includes cover for your vehicle’s repair or replacement costs, regardless of who is at fault for the damage.
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 the car, for prestige vehicles or luxury cars most owners usually prefer to opt for an agreed value.
We make it easy to compare car insurance policies in minutes. Our free car insurance comparison service helps you weigh up policies by coverage, prices and more. Simples!
N.B. Due to the expense of many luxury cars, the car insurance brands that we compare may choose not to provide a quote for certain makes and models.
Don’t stall now. See if you can track down better car insurance cover
Compare car insurance