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Luxury Car Insurance: What Are the Real Needs for Luxury Car Owners

Updated: October 28, 2018

For individuals who own luxury or vintage vehicles, luxury car insurance is a more practical solution than a regular auto insurance policy.

This is because luxury car insurance takes into account the fact that these vehicles often increase in value over time.

With a regular car, the owner can expect its value to decrease on an annual basis. In contrast, luxury cars only get more valuable over time.

For example, a 2005 model Ferrari will probably have a very high value 20 or 25 years down the road.

In contrast, a 2005 model Toyota Corolla is unlikely to be worth very much in a couple of decades.

What is Luxury Car Insurance?

Luxury car insurance is a specific type of auto insurance policy that applies to sports cars, luxury vehicles and vintage cars. The reason these cars have their own type of auto insurance is because they tend to increase in value over time.

Because of these factors, car insurance companies will generally charge more to fully ensure a luxury vehicle.

In addition, luxury cars require a lot more maintenance, they are more expensive to fix and their drivers are more likely to get into accidents. The increase in accidents is due to the higher horsepower associated with luxury vehicles.

Because of these factors, car insurance companies will generally charge more to fully ensure a luxury vehicle. They do this because they want to protect themselves against the increased risk of claims from the luxury vehicle’s owner.

If the luxury vehicle is a vintage car, the luxury car insurance rates may also include a guaranteed value form of coverage. This coverage ensures that the owner is compensated for the car’s value if it is destroyed, not how much they paid for the vehicle.

It is best to speak with an agent to determine if your vehicle qualifies as a luxury car.

How Much Coverage for Luxury Vehicles?

Luxury vehicles are different from regular cars. While everyone wants to get cheap sports car insurance, sometimes it makes sense to have a more thorough policy.

Comprehensive coverage is needed because luxury vehicles are more likely to get stolen or vandalized.

One of the major components of auto insurance that every luxury car owner must include is comprehensive coverage. This type of coverage protects the owner in the event of theft, vandalism or other non-driving related damage to the car.

Comprehensive coverage is needed because luxury vehicles are more likely to get stolen or vandalized. In addition, the cost of repairing damage from natural disasters is higher for these cars than regular vehicles.

If the luxury car is taken on the road on a regular basis, the insured individual will also need some form of liability insurance. Liability coverage is not necessary if the car is always kept in the garage.

Individuals may also want to consider roadside assistance and spare parts coverage if they have a luxury vehicle. These add-ons can save a lot of money in the long run, especially if you take this car on the road frequently.

How to Save Money on Luxury Car Insurance?

If someone has a luxury vehicle that they never drive, it is better to only have comprehensive insurance coverage. This means that the vehicle is protected if it is stolen or damaged in a natural disaster. But since it is never taken on the road, there is no need to pay for liability or collision coverage.

The owner of the luxury vehicle should only list themselves as being a designated driver on the exotic car insurance policy.

Another way to save money is by getting a limited mileage policy. This applies to luxury cars that are driven occasionally or only to road shows. By agreeing to a per month mileage limit, the insured can get much lower luxury car insurance rates than usual.

The owner of the luxury vehicle should only list themselves as being a designated driver on the exotic car insurance policy.

It is never advisable to put teenage children on the driver list, because this can cause a spike in the insurance premium rates.

If the insured individual can demonstrate that the luxury vehicle is not their primary car, the insurance company will offer a lower rate. This happens because the insurance company knows you are less likely to drive the car, which means the likelihood of an accident in that vehicle decreases.

Getting Cheap Sports Car Insurance

If the insured driver gets a traffic ticket while driving the luxury vehicle, it is possible their rate will increase. Statistics show that rates can increase by as much as 20 percent for a single road or driving violation.

If you get into an accident in the luxury vehicle and the damage is only minor, get it repaired out of pocket.

It is possible to have these violations exempt from the driving record in some states, through taking classes at driver school.

If you get into an accident in the luxury vehicle and the damage is only minor, get it repaired out of pocket. This means you do not have to file a claim, which prevents your luxury car insurance rates from rising in the future.

People also have the option of increasing the deductible on their luxury car insurance policy. With a regular car, an increased deductible is a fairly high-risk decision.

However, luxury cars are not taken on the road that often, which means a higher deductible is unlikely to have a major negative impact. It is a sensible way to ensure that you are not paying exorbitant sums for luxury car insurance.

Where to Get Luxury Car Insurance

There are many companies that offer specific policies for luxury, sports or vintage vehicles. The type of vehicle you own has a major impact on the type of insurance you receive.

If you already have a regular auto insurance policy from a reputable vendor, it makes sense to use them for your luxury car insurance policy.

For example, most sports vehicles are put into regular car insurance policies. In contrast, vintage cars have their own luxury car insurance, because of how they are maintained and driven.

If you already have a regular auto insurance policy from a reputable vendor, it makes sense to use them for your luxury car insurance policy. By getting two policies from one company, you can probably get a discount on them both.

Individuals who own a number of luxury and vintage vehicles will probably prefer to get insurance policies from a dedicated luxury car insurance provider. By insuring all the vehicles with one dedicated provider, you get the benefits of a group discount while also getting a significant level of protection for the cars.

Wherever you get luxury car insurance, make sure the insurance company is taking into account the fact that your vehicle’s value will increase over time.