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4 Special Features of High-Value Car Insurance

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Keep reading to discover the  specifics of insurance contracts for luxury vehicles. 

1. Replacement Cost or Agreed Value Insurance

Luxury cars depreciate even faster than regular vehicles and one of the main concerns of owners of high-value cars is the value retained in case of total loss or theft of the vehicle.

For this reason, many luxury car insurance policies include a clause that locks in the value of the vehicle for the year. In case of a total loss due to an accident or theft of the vehicle, the company compensates the policyholder according to the replacement value or an agreed value and not on the basis of an expert estimate. Some companies offer to replace the vehicle with the latest model in case of total loss. Whichever option is chosen, the insured avoids losing thousands of dollars of the purchase price or lease balance.

2. Higher Loss of Use Amounts

Standard loss of use coverage amounts provide a budget to lease a current replacement vehicle. However, luxury car owners typically want a temporary replacement vehicle with a level of comfort comparable to their vehicle. With larger loss of use coverage amounts, the owner of a high-value car who is deprived of it can lease a replacement vehicle that matches his or her usual comfort level.

3. The Choice of Garage and Parts

Some insurance companies allow the insured to choose the garage where his vehicle will be repaired and some of them have relationships with highly recommended garages. It is quite normal that the owners of luxury cars want to be able to choose where the repairs will be done, or at least to be directed towards specialists for this type of high value vehicles. The insured can also demand that the replaced parts are exclusively original parts of the manufacturer.

4. Many Additional Benefits

Insurance contracts for high-value vehicles offer the possibility of subscribing to numerous optional guarantees, including: 

  • No deductible for lost or replaced keys, changed locks or airbags;
  • Variable deductibles of up to 10 000 $;
  • Coverage for vehicles not owned by the insured;
  • Coverage for non-owned vehicles
  • Valet service that delivers a courtesy vehicle wherever the insured wishes;
  • A guarantee to protect the insured's file even in the event of an at-fault accident;
  • Financial protection in case of interruption of the lease or car loan contract.

Whether you own a luxury sports car or a family SUV, insuring your high-value vehicle with a traditional insurance policy, either through negligence or as a cost-saving measure, can be very expensive in the event of a claim or theft. It is better to opt for a protection policy adapted to the vehicle's value as soon as you acquire it. Of course, the premium will be more expensive, but the appropriate contract will provide the proper coverage for the vehicle owner in case of a claim.