5 Must-Know Things About Car Insurance for Luxury Cars
Updated On Oct 14, 2023
Here is your guide for buying a car insurance policy for your much-loved luxury car.
A luxury car is a dream come true for many because of the hefty price tag with which it comes. Because of this reason, getting a car insurance for a luxury car becomes all the more important as even a small repair can cost a huge amount. A luxury car is quite different from an ordinary car in terms of internal features, design and price. So, an insurance policy for a luxury car must have more add-ons so that the owner can claim greater coverage in case of an accident/theft.
An insurance policy for a luxury car has a higher premium as its repairing cost can be expensive. Moreover, in the case of theft of your luxury car, the insurance company can deliver you the full market price of the car considering depreciation on the basis of the car's age and the manufacturer’s present value as per the Indian Motor Tariff, 2002.
5 Things You Must Do While Buying Car Insurance for Your Luxury Car
Here are seven things that you must know about the car insurance of your luxury car. This knowledge will help you to enhance the security of your luxury car.
1. Take a Comprehensive Insurance Cover
Apart from the compulsory third party car insurance policy, a person owning a luxury car in India should take a comprehensive car insurance policy. A comprehensive policy can provide coverage for any damage caused by the owner due to a mishap or natural calamities like thunder, earthquake or fire etc.
The premiums of comprehensive car insurance are higher than the third party car insurance policy but you can give it to the insurance company against the assurance of total security of the car.
2. Choose Suitable Add-ons
The car insurance companies deliver the opportunity to the car owners to add the necessary add-ons to the policies. Some leading add-ons are accessory coverage, roadside assistance coverage and zero depreciation coverage. While having the accessory coverage, you will get total coverage if you have valuable accessories installed in the car if they are damaged. Roadside assistance coverage helps you to meet all types of mishaps that might occur when driving. You can call your insurance company for a towing service if your car break downs on the road. Zero depreciation cover is an add-on in your insurance policy that can cover all external damages and lets you repair the car whenever needed. Thus, the resale value of the car will remain elevated.
3. Compare Premium Amounts
While choosing a policy plan for your luxury car, never forget to search on the internet for the best car insurance company that is delivering the best policy with more add-ons at reasonable prices. Avoid making any hasty decisions regarding the purchase of a suitable policy. As a luxury car owner, you can avoid buying a policy plan from the car dealer. Generally, these plans have more premiums than the ones provided by the leading car insurance policy companies in the country.
4. Maintain an active policy
As a luxury car owner, it is your responsibility to maintain an active car insurance policy. Delivering the monthly premiums on time and renewal of the policy before the deadline can keep your car insurance policy active. In the absence of an active car insurance policy, the car owner becomes liable to meet all the financial liabilities which may arise due to an unfortunate event involving his/her car.
5. Install Anti-theft devices in Your Car
If you own a luxury car, never forget to install certain anti-theft devices in your car. While buying, you can ask the dealer to install these devices. This has two advantages that you must know. First, these devices can minimize the chances of theft of your car and secondly the insurance companies will demand lesser premiums from you as the chances of theft will be less.
So, these are the five things to know about the car insurance policy while owning a luxury car. You should always choose an insurance company keeping in mind all the facts mentioned above.