Owning a luxury car is pretty special. It means that you’ve pretty much made it in life and that you’re on a league of your own. But like all things in life, it comes with advantages and disadvantages. It offers solid perks but requires special needs. In this post, we’d discuss its particular needs when it comes to insurance. You’d know everything you need to know about it and some more. We’d discuss four add-on covers that you should definitely have for your luxury car.
Car insurance is a form of security against all vehicular risks. With a car insurance policy, you will be free from any form of liability and you will be scot-free if your car encounters any form of demise or accident. The law requires vehicle owners to have car insurance to ensure everyone’s security and safety in case of accidents.
Luxury Car Insurance
A luxury car insurance works pretty much the same as regular car insurance. The main difference is that it costs higher and covers specialized risks. Not all cars can be covered by luxury car insurance. Luxury car insurance is only available to vehicle owners with cars that have high-end features and lavish interiors. Mercedes-Benz, BMW, and Lexus are a few of the most popular luxury car manufacturers. Luxury car insurance policies are more particular when it comes to provisions for spare parts and replacements because repairs can be costly.
Typical Coverage of a Regular Car Insurance and a Luxury Car Insurance
Both car insurance policies cover the following risks:
- Collision and comprehensive insurance – ensures that you won’t have to shell out money if you encounter an accident.
- Liability insurance – ensures that you won’t have to spend money on damages for liability should you have incidents with a third party who suffered from damages.
- Medical payments insurance – ensures that your insurance company will be the one to pay for all medical bills and fees should you encounter a car accident.
- Personal injury protection – ensures that you won’t have to worry about spending money on medical fees for any personal or third-party injury.
- New car replacement insurance – a dedicated insurance policy for car replacement when you encounter an accident.
- Gap insurance – ensure that you won’t have to spend extra if you encounter an accident and your car is not yet fully paid for.
4 Car Insurance Add-on Covers Every Luxury Car Owner Must Have
If you want to secure that your luxury car is fully protected, then it’s imperative that you also have the following add-on covers:
Add-on #1: Add-on Cover for Natural Disasters
Luxury car insurance policies don’t usually cover risks in case of natural disasters. This is something that you should fully go after because hailstorms, floods, cyclones, earthquakes, and bushfires are common natural disasters in Australia. You would have to ensure that your luxury car is fully protected in case of such events. The thing with natural calamities is that you’d never know when they’d strike. Hence, it’s always best to be prepared and fully covered. Luxury car owners often assume that their cars are also automatically safe from risks of natural disasters but they’re often wrong. Most luxury car owners find themselves spending so much money on damages from natural disasters because they find out belatedly that their already expensive luxury car insurance does not cover it. Don’t suffer from such an avoidable mistake. Secure a natural disaster add-on cover.
Add-on #2: One-year Car Replacement
This coverage is particular to vehicle depreciation. Luxury cars depreciate too and such a fact is always considered in luxury car insurance policies. This add-on is not usually offered in luxury car insurance policies. You will need to request it or look for an car insurance company that already offers it. This kind of unique cover will ensure that you will get a brand new replacement even if your car is already 6 – 24 months old. This kind of cover waives the depreciation aspect. So much so that you will get a brand new luxury car even if your vehicle is already beyond repair AND even if its value has already depreciated.
Add-on #3: Coverage for Fire and Theft
Luxury car insurance available across Australia doesn’t usually offer fire and theft coverage. This is a tricky situation because you would want to fully secure your car but that won’t be possible if you’d have general luxury car insurance. Incidents of fire and theft are separate from accidents. In such cases, you’re certainly going to be the one responsible for all the damages that you will cause and incur. Avoid such sticky situations by simply opting for an add-on cover for such cases.
Add-on #4: Special Agency Repair
Ensure that you have this add-on to avoid spending on costly repairs. Luxury cars are extremely expensive. Repairing them and looking for spare parts are no less costly. Secure an add-on that will exclusively take care of such concerns. An agency repair add-on will ensure that your luxury car’s manufacturer will directly undertake the repair of your car and that you will only receive original spare parts. The use of non-genuine spare parts can significantly decrease the market value of your car so you should be extra careful when dealing with non-agency repairs. With an exclusive agency repair cover, you can be sure that your luxury car is fully taken care of by the best team possible — its original manufacturer.