What Is Luxury Car Insurance? – Typically, luxury cars are costly to insure than any other type of brand. This is because luxury cars comprises of high-end features and more amenities and system than regular vehicles. For instance, if you own a Mercedes Benz or BMW, expect to pay higher premiums when purchasing auto insurance.
Although, the cost is always on the high side, optimum protection is guaranteed. So, if you own a high-end vehicle, consider getting a luxury car insurance.
Just like any other type of cat, you are required to carry a minim liability coverage as mandates by the state law in order to be able to drive your car legally. You may also decide to add other type of car insurance to hour coverage for additional protection.
Examples of Car Brands Are Considered Luxury Vehicles for Insurance
If your car is on this list, then most insurance companies will consider it as a luxury car, which means you may be charged higher premiums.
- BMW
- Benz
- Ferrari
- Audi
- Porsche
- Lexus
- Tesla
- Maserati
- Lamborghini
Why are these cars considered as luxury for insurance? This is because these brands are of high value and they often have a high repair cost which automatically makes it expensive to insure than any other brand of cars.
Types of Insurance Coverage for Luxury Car
As mentioned earlier, you must have the minimum liability coverage for car insurance as required in most states. There are several other coverage types you can add to your car insurance policy for luxury car, such as:
- Comprehensive coverage.
- Collision coverage.
- Medical payments coverage.
- Gap insurance.
- Personal injury protection (PIP).
- Uninsured/underinsured motorist coverage.
How Much Does Luxury Car Insurance Cost?
Generally, insuring a luxury or exotic car means you get to pay higher premiums. Because luxury vehicles are expensive, most insurance companies consider the risk involved, including the cost of repair in the event of an accident. Hence, the reason, they are usually more expensive to insure than any other type of cars.
However, the cost of insuring a luxury vehicle differs across insurance companies but the average cost for auto insurance full coverage is $2,008 yearly. So, if you are insuring a luxury car, prepare to pay more than this.
Factors That Affect the Rates of Car Insurance
There are several factors used in determining how much you will be charged when purchasing car insurance. When calculating insurance rates, most insurance companies weigh so many factors, such as:
- Age: Teen drivers are considered to be higher risks and so, they get to pay more for auto insurance coverage. If you are older, the chances of you paying a huge amount of money for insuring your vehicle are slim.
- Gender:Male drivers pay higher rates than female drivers; this is because they engage in risky behaviuors and are more likely to get into accidents on the road.
- Location:The placeyou reside also determine how your premiums will be say. For instance, if you live in an area with a high record of criminal activities like theft, you’ll most definitely be charged a higher rate for coverage.
- Driving history: another thing that can potentially affect your car insurance rate is your driving record. Usually, drivers with DUI convictions, traffic violations or at-fault accidents on their record tend to pay more for car insurance.
- The type of vehicle: If you are insuring a high-end vehicle that worth a lot of money, expect to pay higher rates on your car insurance. The more expensive the car is, the higher the cost of insuring it.
Asides the aforementioned factors, your marital status and credit history can determine how your car insurance company will charge you for coverage.
How Do I Get Luxury Car Insurance?
The process of purchasing luxury car insurance is straightforward and easy, often the same process for buying coverage for a regular car. To insure your luxury car, start by comparing quotes from several insurance companies, and then determine the type of coverage you want on your policy. In the process of getting quotes to weigh your options, you will be asked to provide your age, gender, address, contact information, year and model of the vehicle, marital status, driving record and credit history.
Once you’re done comparing the insurance rate and coverage option from different providers, choose the insurance company that best aligns with your need, preference and budget. Some insurance companies
FAQs
How much insurance coverage do I need for my luxury car?
The answer to this question depends on so many factors, one of which is, the value of the car you want to insure. Other factors that can determine how much coverage you need are driving history and the insurance company you are working with. They are not just limited to these factors alone but it is important to note that the minimum liability requirement varies across different states. Hence, it is advisable to discuss with your insurance provider or an agent that would guide you on the right amount of insurance you need for your luxury car.
How can I find affordable rates for luxury car insurance?
Despite the fact that it is usually more expensive to insure luxury or exotics cars, there are several ways drivers can still save cost. To get an affordable rate for your vehicle, you will have to shop around, compare quote, and don’t forget to take advantages of discounts. By doing this, you can potentially save on your insurance premiums.