Luxury Car Insurance Australia

What is Luxury Car Insurance?

Car Insurance can be a way to help protect yourself and your vehicle when you’re on the road — depending on your level of cover. You can opt for lower-cost options that only apply to damage done to third parties and their property or go all out with Comprehensive Car Insurance to get cover across a wide range of situations. But even this top-tier option might leave you wanting if you’re driving a luxury or prestige car. That’s why there’s Luxury Car Insurance. 

Typically available from specialist insurers, Luxury Car Insurance can get you coverage that takes into account the higher value of your car — and higher repair and replacement costs — as well as the reality of owning a car that’s a cut above the rest. This can be as simple as setting an agreed value rather than market value to insure. It can also include specifics like your mechanic of choice to ensure you’re dealing with someone who knows about your car or that you’re going to have to import factory-approved parts from overseas. 

Just like your luxury car comes with little extras that enhance your driving experience, Luxury Car Insurance can come with plenty of extras too. For instance, if you need to ship your car elsewhere in Australia, you may be able to get maritime liability added to your coverage. Alternatively, if you’ve modified or enhanced your car in certain ways, you may want to look into a policy that notes these changes and the value they’ve added to your car. With this type of Luxury Car Insurance, you can tailor a policy to better suit your needs and vehicle. 

And, if you ever need to double check what your Luxury Car Insurance includes, you can find it detailed in the Product Disclosure Statement (also known as the PDS). 

Which cars are luxury cars? 

While ‘luxury’ certainly can be subjective, Luxury Car Insurance tends to focus on a variety of factors to determine if a car has enough prestige to need this sort of policy. This can include: 

• Better performance 
• Higher-quality materials, parts and equipment 
• State-of-the-art technology 
• Stylised design, including high-quality finishes and attention to detail 
• Superior comfort 
• Image or brand status 
• Exclusivity 

Essentially, Luxury Car Insurance is designed for high-end cars, extreme performance supercars and modified cars. While it can also include classic and vintage cars, these vehicles may fare better under tailored Classic Car Insurance given that age often plays a role in their value and you may not be driving them as much. 

What level of insurance do luxury cars need? 

There’s no one-size-fits-all here (and when does that ever work anyway?) You might be happy to pick a more general Luxury Car Insurance Policy whereas someone else who owns the same kind of car might want a more tailored option.  

It might help to think about what you want your insurance to cover if the worst does happen. For instance, if you crash one of the only nine Lambo Veneno Roadsters in the world, you might not be so worried about cover for any modifications you do or don’t have and just want to make sure it goes to a mechanic who knows what they’re doing. 

At the same time, you may want to consider how much you can comfortably pay in insurance premiums versus how much you can afford to pay for without insurance. While you might get a cheaper premium by forgoing a replacement vehicle as an extra, you might also find yourself significantly out of pocket if you write your car off and want to get a similarly luxurious car again. 

What does Luxury Car Insurance cover? 

If Comprehensive Car Insurance is a regular old gorilla, then Luxury Car Insurance is King Kong. Both have plenty of oomph to them but only one of them is impressive enough to get their name in lights. So, with Luxury Car Insurance you can likely expect to see the benefits of a Comprehensive Policy along with some desirable extras, like: 

• Your choice of repairer: Unless you want the car equivalent of that botched restoration of Jesus Christ from some years back, picking a repairer who specialises in your car’s make may be high on your list.  
• Part imports: Like luxury cars themselves, the parts for them typically come from overseas and can be more expensive than those on mainstream models, leading to higher repair bills. 
• Accessories and modifications: While mainstream Car Insurance Policies may have some options for accessories and modifications, they may not extend to the degree that your tailored luxury car needs. 
• Agreed value: Putting a number on a prestige car can require more than a quick Google. With an agreed value rather than market price, you may be able to insure your car’s value more accurately. 
• Salvage rights: Having the option to keep your car if it’s written off may be a must-have for you, particularly if you prefer classic or vintage cars. 
• Sign writing: If your luxury car is for business rather than pleasure, you might be able to get cover for any signage or advertising on it. 

How much does Luxury Car Insurance cost? 

Since you’re dealing with a higher-value car, it shouldn’t come as a surprise to find that Luxury Car Insurance tends to come in a bit higher than your standard fare. What does stay the same though is the general factors that go into setting your premium amount. Your level of cover, your excess, your claims history, your car’s make and model, where you park your car at night, and even your age all play a role in determining that final number. While there’s some things you can’t change (unless you’ve got access to a time machine), others you might be able to tweak to drive your premiums down. 

Helpful Tip:

If your luxury car doesn’t get driven often, chat to your insurer about any potential discounts. You may be eligible for a Low-Kilometre Policy that could reduce the upfront cost. You could also consider a higher excess to lower the premium.

Toby Hagon

Motoring Journalist

How can I save on my Luxury Car Insurance? 

Luxury Car Insurance isn’t a bargain-free zone. In fact, there’s actually a few different ways you could get better value out of your policy. 

• Up your car’s security: Your car might be too tempting for some thieves and vandals to pass up, but installing a GPS tracker and car alarm could help keep your car secure and bring down that premium. 
• Factor in how often you drive it: If your car is purely for show, you may be able to get reduced premium rates for it. 
• Set age restrictions: With young drivers often attracting higher premiums (there has to be some downside to youth, after all), you could potentially set an age limit on your policy and car to cut some fat from your premium. 

Just as you may be able to tailor your Luxury Car Insurance Policy to better suit your car, you may be able to adjust it to go a little easier on your bank balance.