If you are the owner of a luxury car, you probably already know that auto insurance can be very expensive. Besides costing more to repair and replace, luxury cars tend to have features which are absent on less expensive models; all of this adds up to steep bills if you are in an accident. Luxury cars are stolen more often, as well, making them more expensive for comprehensive coverage.
However, there are ways you can save money on your luxury car insurance and find the right company to insure your vehicle.
First, be sure you are dealing with a company which understands the needs of a luxury vehicle owner regarding car insurance. Some companies deal with cut-rate insurance policies for those who are insuring less-expensive cars; these may not be the best choice for your luxury car insurance.
Instead, find companies who can deal with your special needs. While State Farm, Allstate, Nationwide, GEICO, and Progressive are all large companies and well-equipped to deal with your needs, you may not get the best prices from them. Instead, consider some smaller and more elite companies as well as the “Big Five.”
If your dealer invites you to become a member of the auto club governing your brand of vehicle, it is often a good idea to join. Auto clubs typically offer lower-priced insurance for luxury vehicles, and these insurance policies are tailored specifically to the type of car you drive.
While AAA is the most famous auto club, and may be a good choice for you, there are also auto clubs which specialize in Mercedes, Lexus, BMW, and a host of other luxury cars.
You may also want to investigate “classic car” insurance if your luxury car was purchased as an investment instead of a car to be driven every day. If you drive your luxury car infrequently, you may qualify for classic car insurance, which provides much of the same coverage as a liability policy, but allows you more flexibility when it comes to repairing and replacing your vehicle.
In fact, classic car policies are an ideal choice if you plan to modify your car in any way, as actual-value coverage from these companies allows you to set the price the company will pay if you must file a claim.
The company then calculates your premium based on your new numbers. Hagerty Insurance is one company which has built a strong foundation insuring classic and luxury cars.
In contrast, regular insurance companies typically pay “book value” on a car which must be repaired or replaced. This means that what the car is worth by Kelly Blue Book or some other measure is what you receive. Be sure to purchase “gap” coverage if your vehicle is financed; this will allow the insurance company to pay what you owe on the vehicle, no matter what it is worth.
The best way to find luxury car insurance at reasonable prices, and to find the right company to deal with you, is the same as for other cars—talk to an independent agent, your local automotive dealership, and search online. Online search pages will take your luxury car information and send it to many companies, so you can get quotes from several places.
Be sure to examine these quotes carefully and be sure that you are receiving liability, comprehensive, collision, and uninsured motorist coverage at a minimum. It is unwise to forego comprehensive and collision with a luxury car, since the cost of replacing and repairing these vehicles is so high.
You should also look at the deductible proposed by the policies in your price quote; many companies will raise your deductibles to lower your premium, but this means more money out of your pocket if you have an accident.
