If you are about to invest in that luxury car that you always wanted, you are not the only one. According to the latest figures, luxury car sales have been absolutely booming in the US, with some estimates calculating that sales growth has surged more than 30% year on year.
As more Americans increase their savings and have money to spend on truly unforgettable purchases, the value of a luxury car has taken on a whole new level of meaning. If you truly value your high-end car, you will need insurance to match. Read on the find out everything you need to know about luxury car property coverage.
1. You Will Need Higher Coverage for a Luxury Car
First off, it is important to note that any high-value car requires a higher level of coverage. Most “standard” auto insurance policies will have a coverage ceiling of, say, $10,000 to $25,000.
This is not going to be very useful if you total your $400,000 Ferrari. Luxury car insurance is designed to cover the real cost of luxury car damages, with many policies having an upper limit of $1 million or higher.
2. Your Car Will Be a Magnet for Criminals
This one is important to emphasize. By any measure, a luxury car is significantly more likely to be targeted by thieves and vandals than any other type of vehicle. This is simply a fact.
Criminals assume that your luxury car will contain valuable items. They also target luxury cars for their overseas re-sale value. Take this into account when selecting luxury car property insurance and make sure to choose a policy with enhanced theft coverage.
3. You Will Need to Set an Agreed Value with Your Insurer
When properly insuring an exotic car, you need to take into account the longer-term value. While normal cars have a standard depreciation calculation built into any insurance policy, this same logic does not apply to exotic cars.
Your exotic car might even increase in value over time. That is why you need to hash out a so-called “Agreed Value” for your vehicle with your insurer. This will ensure that you always have the top-level coverage you need.
4. Determine Your Primary Vehicle
Chance is, your luxury vehicle is not your regular-use vehicle. If this is the case, let your insurer know. This will allow you to get the insurance that is cheaper and more appropriate for the nature of the vehicle.
An exotic car that is not for primary use can be insured in a manner that more closely resembles insurance for valuables such as jewels or antiques. In this case, your car is being insured as a high-value asset, rather than simply as a machine that gets you from A to B.
Learn How to Sell Your Luxury Car
Now that you know how to insure your luxury car, it’s time for the next step. You might want to sell your vehicle at some point, ideally for a high price that reflects the value of your asset. If so, make sure to follow our Sell Cars guides to learn how to get the price you deserve for your car.