Buying insurance for a luxury vehicle can be very different to buying insurance for a standard car. A luxury vehicle can be anything from a prestige car (everything from Alfa Romeo to Lotus to Rolls Royce and Mercedes) to an exotic car (for example, a Ferrari, Lamborghini, Maybach and Aston Martin) or a classic, vintage or custom built car. Here are a few things to consider:
Do I have the right type of car insurance?
In Victoria, Compulsory Third Party (CTP) insurance is included in your vehicle registration fee. It covers any personal injuries caused due to an accident involving your vehicle, but doesn’t protect your car or damage to property of a third party. Other the CTP, there are 3 types of car insurance available:
- Third party property damage: This will cover you for the damage caused by your car to other people’s property.
- Third Party Fire and theft Cover: This policy will cover the damage to your car as a result of fire or theft as well as provide coverage for damages caused by your car to other people’s property.
- Comprehensive Car Insurance: Comprehensive car insurance is an insurer’s most extensive policy. It is also the most commonly held policy in Australia. It covers you for most damages done to your car as a result of collision, flood, fire, storm and theft. It also includes cover for damages to other people’s car and property as a result of a collision involving your car. If you are thinking about buying insurance for your luxury car, it’s likely that comprehensive car insurance will be the type of insurance policy that you will need.
Can I choose my own repairer?
This question is particularly important for luxury and exotic cars. You wouldn’t send your family to just any doctor, so why would your prestige vehicle be any different? Many standard insurance policies won’t let you choose your own repairer when you need to make a claim, or they may force you to choose from a panel. After making a big investment into your dream car, you need to have an insurance policy where you can choose a specialist repairer who has the expertise to repair your vehicle, and who has the contacts to source rare parts, particularly if your car is unique or vintage. A specialist repairer will also be able to restore your car to its luxurious condition, and you’ll know that the repair has been done to the highest standard following the manufacturer’s specifications.
How can I reduce my insurance premium?
It’s not necessarily a good idea to choose the cheapest car insurance. After all, the price of being underinsured may end up costing you a lot more than what you saved on the policy! Car insurance is actually one that will allow you to strike a balance between your coverage needs and your budget. Insuring luxury cars can be a bit more expensive than insuring a standard car, because the claims tend to be more expensive and it costs a lot more to replace a luxury vehicle when compared to a standard car! However, there are ways that might save you money, for example:
- Consider where you park the car overnight. Your insurer may charge you a reduced premium if you park your car in a locked garage, rather than on the street.
- Installing safety and security devices on your car can help reduce your premium. Options such as Immobilisers and car alarms contribute, and a car tracking devices can help save you money on your insurance.
- The higher the excess you're prepared to pay, the lower the premium. If you're not worried about the cost of minor repairs (or if you have confidence in your driving abilities to avoid them!), higher excess is a great route to reduce car insurance costs.