Insuring a Luxury Car – Things to Know
- February 3, 2018
Buying a luxury car is a dream of many. Luckily, this dream is not far-fetched with ready finance support and other services available for luxury vehicle lovers. Additionally, a number of corporate discounts are available these days. So, there’s no reason to give up on your aspiration of owning a fancy car.
Yet, maintaining a luxury car is a pain in the neck. It costs a lot. This is also one of the reasons most people keep away from these cars. High-end vehicles call for high cost of repairs. Any minor damages can break your bank.
For example, the standard claim size of owner of a luxury may be estimated to around INR 50,000. Although the sum may be affordable for most of these car owners, it still makes sense to invest in a comprehensive insurance plan.
The process of purchasing luxury car insurance plan is hassle free. Many covers come bundled with car servicing package and accessories. Additionally, Indian law mandates only a third party liability cover for luxury cars need (as per India Motor Tariff).
Yet, the owner may have to face the burden of huge bills for repair. Hence, it is wise to go for a full coverage. Also there is a restricted network of authorized repair workshops for luxury cars. Many of these centers are not skilled and equipped enough to repair the damaged parts.
At times, the overall cost of repairs/replacing spare parts may be very high. Hence, it is crucial to get into a thorough research on standard policy features including add-ons when deciding on a motor insurance plan.
Experts usually recommend a comprehensive cover including value-added features for luxury car owners. In past few years, car insurance covers have emerged as highly comprehensive plans ensuring a wide range of add-ons that are immensely beneficial for a luxury vehicle.
Ignoring a comprehensive insurance plan will turn out to be a huge mistake. However, it is also not ok to give into the urge of splurging on all heavily-promoted add-ons. In order to strike an appropriate balance, you must do your homework.
This is a must have for every luxury car. Experts in the field of insurance suggest having one.
Depreciation reimbursement will cover settlement of the full claim without any deduction for depreciation on overall value of replaced parts.
Luxury car owners should not ignore the importance of having a depreciation reimbursement and consumable cover. These are very important as the cost of replacement of parts more exposed/ vulnerable to damage is quite high. So in case of a claim, higher depreciation amount is to be borne by the insured in the event of a claim.
Do not ignore this one! As a high-end car owner, you may have to face the high costs of repairing the damage to the engine, especially due to flooding. Most luxury vehicles are prone to damage due to water ingress. Remember that overall cost of repair/replacement of engine is to the tune of around 30-40 per cent of the cost of the vehicle. So, it makes sense to have an engine cover if you own a luxury car.
Usually, roadside garages are not equipped or skilled enough to handle repair works of luxury cars. Any repair or servicing of these high-end vehicles demand a specific skill set. These are available only at brand/company authorized service centers. However, car owners can avail private towing services as part of the car insurance policy. It is important to be extra cautious while availing these services. These private companies may manhandle the car, leading to further damage way before it reaches the service center