Luxury cars are the new age status symbols. A luxury car is regarded for its comfort and style. Whatever be your reason to buy one, it is a dream come true. Needless to say, these cars have a minimum seven-figure price tag. This number can go upwards, and there is no limit to it.
Maintaining such a luxury car is an expensive affair. Any damage or repair is going to witness huge bills and to be on the safer side of things, it is better to have a car insurance policy.
Why is it essential to insure luxury cars?
A luxury car does not come cheap; it inherently is made of highest grade spares combined with advanced technology, and more. These high-quality spares mean any damage to your car will require hefty repair bills. Also, those spares might not be available in the country or if available, only at a select few locations. This is going to increase the cost of replacement. With car insurance, you can be worry-free knowing your insurer covers any expensive repairs to your luxury car.
Apart from the above, the Motor Vehicles Act demands all vehicles registered in the country to have a valid copy of insurance. Thus, irrespective of the type of car, you need to have at least third-party insurance policy for your car.
How does a standard car insurance policy differ from luxury car insurance?
The insurance premium for a vehicle is based on its insured declared value. It is also popularly referred to as the IDV of your vehicle. IDV is the market value of your vehicle. Often the IDV is misconstrued as the resale value whereas it isn’t. In case of theft or complete damage to your car, the insurance company will pay the IDV to you, the policyholder.
While purchasing comprehensive car insurance, you can declare the IDV of your vehicle within a particular range. Since luxury cars cost more than a standard car, IDV is also higher. Such higher IDV influences the premiums for your car.
Buying insurance has become more comfortable with online insurance services. When you compare car insurance online, you can check with various insurance companies for a suitable policy that offers extensive coverage for your luxury car. You need to provide basic information, and you can know the estimated premium.
Some of the factors that you should remember when buying car insurance for your luxury vehicle are –
- Select suitable add-ons depending on the requirement.
- Make use of no claim bonus facility to keep your premiums in check.
- Opt for a comprehensive insurance policy. It will ensure any damages to your car are included under the policy coverage.
- Make sure you purchase an engine protection add-on. It will keep you safe from financial hassles of damage to the engine and its components.
- Lastly, replace any damaged parts using spares from OEMs only.
When you purchase car insurance, you can make use of a car insurance calculator. This tool will assist in comparing the various plans and make the process of selection hassle-free. To conclude, do not keep your luxury car uninsured. Its repairs can burn a hole in your pocket. After all, who doesn’t want a safety net for your financial worries?