Team AckoJul 22, 2021
Luxury cars are directly related to the utmost comfort. If not comfort, then they certainly score high on the style quotient. For some, owning a luxury car is a relentlessly-pursued and achieved dream. For some, it might be another perquisite of being born with a silver spoon. Whichever the case, a luxury car is a status symbol. These cars are expensive, to say the least, and damage to such cars can result in a massive repair bill. This is where luxury car insurance comes in the picture. Read ahead to know all about luxury car insurance.
Luxury cars are luxurious for a reason. They are made of inherently expensive parts. Therefore, damage to such parts means you have to spend more to replace such parts or repair the damages caused to the car. With luxury car insurance, you can rest assured that damages to the car will be taken care of by the insurance company subject to the terms and conditions of the policy.
Another important reason to insure your luxury car is The Motor Vehicles Act. This act demands that all cars must be insured with a basic vehicle insurance policy if the vehicle is driven on public roads. Therefore, if you own a luxury car, make sure to insure it with at least a Third-party Liability policy.
The price of a car insurance policy is primarily based on its Insured Declared Value. This is commonly known as IDV. IDV is understood as the market price of the vehicle. However, it should not be mistaken with the vehicle’s resale value. IDV is the upper limit of the amount an insurance company will provide the policyholder in case of a total loss. Instances of theft and damage beyond repair are termed as a total loss.
In online car insurance, you often have the option of choosing your vehicle’s IDV from a range while buying a car insurance policy. As the cost of a luxury car is more than a standard car, its IDV is also on the higher side. As a luxury car’s IDV is on the higher side, its insurance premium is also on the higher side as compared to a standard car’s insurance policy.
The exact price of your luxury car’s insurance policy will depend upon the following primary factors:
The location where the car is being driven
No Claim Bonus (If applicable)
Apart from the factors mentioned above, the cost will also depend upon the kind of policy you choose and the insurer from whom you choose to purchase the policy.
You can check rates of car insurance for luxury vehicles by using the car insurance premium calculator. You can get free luxury car insurance quotes using a car insurance premium calculator, which can be found on the websites of digital insurers. You just have to fill in basic information related to your car and you shall come to know the approximate premium cost of your car’s insurance policy.
Exotic cars are hard to find. As a result, exotic car insurance policies are also not readily available. For instance, an exotic car might not feature in the list of insurable cars on an insurance company’s website. However, the insurance company might insure your exotic or luxury car if you contact them directly through email or call. The insurance company might inspect your exotic car and then offer their car insurance premium quote. If you accept the quote, you can pay the premium and insure your exotic/luxury car.
Here’s a list of important things to keep in mind before buying car insurance for luxury cars.
Add-ons offer extra coverage for an extra premium. Usually, Add-ons cover situations that are termed as exceptions. Sometimes, they are service-oriented as well. Understand your coverage requirement and choose only appropriate Add-ons. Some of the popular Add-ons for luxury cars are; Roadside Assistance, Zero Depreciation, and Engine Protection.
Different insurers might quote different prices for your luxury car’s policy. Make sure to compare policies keeping the required cover as a common factor. Some policies might come at a cheaper price but with reduced coverage. On the contrary, digital-first companies are known to offer good coverage at a low cost.
You can calculate insurance costs for luxury cars using a car insurance premium calculator. If you are not satisfied with the quote, you can try to tweak the coverage a bit and know how it affects the luxury car insurance cost instantly. For example, you can skip unnecessary Add-ons and notice a dip in the luxury car insurance rates.
Luxury cars are always on the hit-list of thieves. Make sure to install certified anti-theft devices to protect your luxury car from theft. Installing anti-theft devices certified by the Automotive Research Association of India (ARAI) can result in premium reduction by a margin.
Engine Protection Cover is an important Add-on when it comes to a luxury car. Damage to a luxury car’s engine can result in a hefty repair bill. For example, flooding can damage a luxury car’s engine. Such damages can be managed in-depth if you have an Engine Protection Cover.
With this Add-on, your insurance company will send help if you are stranded in your luxury car. The mechanic will provide the necessary assistance. If it is not possible to repair the car on the spot, it shall be towed to the garage. This way, you do not have to go through the stress of finding a mechanic/towing service/garage, etc.
Luxury cars have a high invoice value. In case of a total loss, insurance companies settle the claim as per the Insured Declared Value, which is less than the invoice value. However, with this cover, the insurance company will reimburse the invoice value instead of the IDV.
You can get a discount while renewing your car insurance policy if you haven’t raised a claim. However, with a No Claim Bonus Protection Cover, you can benefit from the no claim discount even if you have raised a claim.
Make sure to install only original parts while repairing your luxury car.
It is compulsory to insure your car with Third-party Liability coverage. Failing to do so can result in a hefty fine. It can also lead to imprisonment.
Opt for Comprehensive coverage as it offers all-around insurance coverage, including the mandatory part. The premium will be higher compared to a Liability-only policy but the extended coverage is beneficial for a luxury car.
Also, read: Why Does Car Insurance Premium Increase Every Year?
Popular Luxury Car Brands in India:
Popular Luxury Car Models in India:
Jaguar XJ L
The key to buying the best car insurance for luxury cars lies in understanding your car insurance requirements and then searching for a policy that meets most of those requirements at a reasonable price.
Luxury car insurance companies are uncommon. All insurance companies might not insure luxury cars. You can go through their websites to check if your car is featured in their list of options and to find the best insurance for luxury cars. You can also call them up to enquire about the same. You can reach out to Acko General Insurance by calling on 1800 266 2256 or by sending an email at [email protected]
What if I do not insure my luxury car?
Not insuring your luxury car will expose you to legal risks such as hefty fines and imprisonment.
How can I confirm if my preferred insurer offers luxury car insurance?
You can call your preferred insurance company to know if they offer luxury car insurance or not.
Is it better to opt for Comprehensive insurance for a luxury car?
It is better to opt for Comprehensive insurance for a luxury car as it offers better coverage than a Third-party Liability policy.
Can I switch to a different plan while renewing my luxury car insurance policy?
Yes, you can switch to a different plan, as well as a better insurer while renewing your luxury car insurance policy?
Can I get an Add-on to cover the accessories kept in my luxury car?
You can purchase an Add-on cover to insure the accessories kept in your luxury car.
– September 10, 2020
A battery company called Atieva was relaunched in 2016 as Lucid Motors. Lucid Air is the company’s first car and the team is head over heels about their first launch. The Vice President of design, Derek Jenkins said that the company could not wait any longer for launching the car. Hanging back is not an option according to this design head. Lucid Air will lock horns with Tesla Model S. In terms of specifications, not much is revealed in this point in time, however, the company has assured that this electric car will cover 832 kilometers on a single charge. According to Eric Bach, the hardware engineering vice-president is confident that their car is based on “the world’s fastest-charging ever offered”. The car manufacturing company is based in California and the announcement was made on a live stream from the Silicon Valley headquarters.
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