The demand for luxury vehicles is growing. In June this year, 18% of total car sales were luxury cars, which is up by 0.7% from the previous month. The global luxury car market had a value of $134.15 billion in 2021, and it’s expected to cross $350 billion by 2029. So, there’s no doubt that this market has potential.
Luxury cars are a great way to show your wealth and status, but they can also be a great investment in a vehicle. They’re very comfortable, and you’ll never have to worry about the upkeep on them. These cars symbolize success. They’re not just a way to get from one place to another; they’re an expression of your personality and the way you want to be seen by others.
One of the reasons people buy luxury cars is that they want to feel good about themselves. Luxury cars are also a way for people to express themselves through their vehicles. Some luxury cars are designed to be fast and flashy, while others are designed to be sleek and sophisticated. It also helps them to feel more confident in social situations where they may be meeting new people or trying out new activities for the first time.
So, it’s evident why people buy luxury cars these days. However, when you buy a luxury car, you must also consider getting luxury car insurance. Why so? That’s what we’ll be discussing today.
What Is Luxury Car Insurance?
On average, there are over six million car accidents in the US every year. Over the last two years, there have been over 700,000 reports of stolen vehicles each year in the US. A close look at these statistics will show that luxury cars are often victims of such situations. So, it’s only natural that you get your luxury car insured.
Luxury car insurance is a specialized kind of auto insurance that you can buy to protect your vehicle in the event that it is damaged, stolen, or vandalized. In many cases, luxury car insurance can be more expensive than regular auto insurance that they are considered to be more valuable than other types of vehicles.
While it’s true that most cars on the road today are relatively reliable and safe to drive, if you own a luxury car, you may be more likely to experience an accident or have damage done to your vehicle. This is because luxury cars are often more expensive than other models, so drivers may be tempted to take risks behind the wheel.
Luxury car insurers tend to offer a number of extra perks for customers who buy their policies. These can include concierge services like roadside assistance and 24/7 customer service. They may also offer additional coverage options like rental reimbursement or roadside assistance when traveling outside of your home state.
The average cost of this type of insurance is significantly higher than it would be for the same driver’s regular coverage. The reason for this is because these vehicles are often more expensive to repair or replace.
We’ll talk more about these costs in the following section.
How Much Does Luxury Car Insurance Cost?
The price of luxury car insurance depends on several factors, including the model of the car you drive and your driving record. Some things to consider when shopping for this type of coverage include:
- Frequency of use: If you plan on using your vehicle for less than 10,000 miles per year, it would be prudent to consider a less expensive policy that includes limited mileage coverage.
- Type of damage: If your vehicle has been damaged in an accident or stolen, having comprehensive coverage can protect you financially in case it happens again during the term of your policy.
- Age/condition of the vehicle: If you have just bought a new vehicle, it should be covered by the manufacturer’s warranty. You can have additional coverage with it, which you should. For a second-hand luxury vehicle, you might or might not have the manufacturer’s warranty, depending on how old the car is.
On average, full insurance coverage for cars in the US is $1,674 a year. For luxury cars, that amount can go upwards of $2,000 a year. This number varies widely depending on the type of vehicle you drive, where you live, and how long you’ve been driving.
Things to Consider When Getting Luxury Car Insurance
The first thing to consider when shopping for luxury car insurance is what kind of coverage you need. Do you want comprehensive coverage that will cover all of your expenses if your car gets damaged or stolen? Or do you want liability only, which only covers damage that may be caused by your vehicle? The more comprehensive coverage you get, the higher your premium will be.
Another factor that affects the price of your premium is where you live. Some states have high rates of theft or vandalism and therefore charge more for comprehensive coverage than other states do. Also, keep in mind that some cars are more expensive than others and so are harder to steal or vandalize. So, they might cost less to insure than others would.
Finally, there’s your driving record. If you’ve never had an accident or been ticketed before, chances are good that your premiums will be lower than someone who has been in several wrecks or been cited for reckless driving several times over their lifetime.
What Are the Benefits of Luxury Car Insurance?
Luxury car insurance provides users with several benefits, including:
- Comprehensive cover – to cover any damage that may happen to your car
- Liability coverage – to protect you if someone is injured or their property is damaged while in your car
- Bodily injury protection – to help pay medical costs and lost wages for those injured in an accident caused by your negligence
- Uninsured motorist coverage – to protect you from being hit by a driver who has no insurance or who doesn’t carry enough insurance to pay for the damages they cause
Like most other things, the benefits will also vary depending on your insurance provider. However, the ones we’ve mentioned are the most common benefits you’re likely to receive from your provider.
That’s all you need to know before you go looking for luxury car insurance for your vehicle. Keep these things in mind as you go through the various options available at your disposal.