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Insurance policies for these cars can be quite pricey, but there are still some ways you can reduce your annual policy fee.
Price is not the only factor that determines if a car is considered prestige. Other factors include:
Cars in the luxury or prestige category aren’t limited to Ferraris and Lamborghinis. They also include high-end cars, extreme performance supercars and modified cars.
Classic cars are best protected under tailored classic car insurance, rather than a luxury car insurance policy. Cars become classic or historic when they reach the age of and different registration rules may typically apply.
On top of compulsory CTP insurance, mainstream car insurance policies include third party property (with or without fire and theft), and comprehensive insurance1. Third party car insurance isn’t usually recommended for luxury car owners because it doesn’t cover damage to your car in an accident. You could choose a mainstream comprehensive car insurance policy, but it won’t typically provide all the additional extras that you may need.
A more suitable insurance option for a luxury or prestige car may be tailored luxury car insurance. These types of policies are usually offered by prestige car insurers, although you may find a mainstream insurer that offers a comparable policy tailored to your needs.
Luxury car insurance usually suits car enthusiasts, businesses with high-end company cars, and car collectors.
As a luxury car owner, you can choose any insurance cover you like. However, it pays to consider the consequences of inadequate cover in the case of an accident. If you can’t afford to replace your car, or your car has modifications that aren’t covered under mainstream comprehensive insurance, prestige car insurance may be the best option.
Luxury car insurance is generally always comprehensive car insurance, combined with all the usual available add-ons, and with some additional extras. It’s the premium, top-of-the-range option to match your unique car. Here are some of the additional benefits included in a prestige policy:
A luxury car is a valuable asset and owners typically want a known, trusted repairer working on it. A luxury policy allows you to choose your own repairer, so you can be sure your car is well looked after.
Luxury cars often need parts imported from overseas and some luxury insurers cover express freight to get these parts here fast. This is usually capped at a certain amount.
Some luxury cars have modifications or added accessories that aren’t normally covered under mainstream policies. A luxury policy will usually cover all accessories and modifications.
Unlike mainstream policies where owners can often choose between market or agreed value, luxury policies usually only offer agreed value to establish the insured amount. The agreed value usually remains fixed for the life of the policy.
Some luxury policies include cover for fixed advertising and sign writing on luxury business cars.
If your car is written off, luxury policies give you the option to keep the car. This is usually dependent on the age of the car and should be checked with your insurer.
Some luxury cars are driven rarely, so luxury policies often give limited-use discounts or waive premiums when your car isn’t used for some time.
If you’re an avid car collector, you can often get discounts for insuring multiple vehicles with the same luxury insurer. These types of policies usually allow you to tailor options to each individual car.
Car enthusiasts may change or upgrade their car often and luxury insurance policies normally make it easy to swap over your insurance. Some even transfer your policy automatically for a set amount of time so your cars are never uninsured.
The price of luxury car insurance may tempt you to find a mainstream insurer that offers a comparable comprehensive policy. However, this can often be more expensive, as mainstream insurers won’t typically offer package discounts for additional benefits. It never hurts to compare policies though, so it might be worth comparing the price of a luxury policy and mainstream comprehensive policy that meet your needs.
Despite the need for luxury, top-of-the-range insurance, there are still some things you can do to reduce your insurance premium:
Your car’s value may encourage thieves and vandals, which can add to the cost of your insurance. Installing immobilisers and car alarms will keep your car secure and may bring down your premium.
Some luxury cars, especially high-performance supercars, need superior driving skills. Taking an approved defensive or skilled driving course can lead to lower insurance premiums.
Young drivers typically pay higher premiums and age excess for all types of car insurance. Restricting the age of drivers can mean you pay less for your insurance.