Cheap Auto Insurance for Luxury Cars

Cheap Auto Insurance for Luxury Cars

Here at RiskBlock, we’ve covered the topic of luxury car insurance  to protect your valuable automotive assets. This is certainly an intelligent step, but when talking to insurance companies, realize that most mass market insurers aren’t equipped to insure luxury cars adequately – they make their money off of volume and don’t tailor their policies to fit your needs. Worse, they may steer you towards cheaper policies that don’t cover as much as you may think you are.

What’s a consumer to do?

In this article, we’ll take a look at some of the reasons why this is so common, some of the pitfalls to avoid, and who you can contact to ensure that your luxury vehicle is covered.


Expensive to Insure?

It may seem like common sense, but luxury vehicles are made of expensive parts and materials. Hence, replacing items like high-powered engines, flawless aesthetics, and special construction materials can sink a larger financial hole than, say, a 1996 Toyota Camry.

Also, exotic cars also bear a higher statistic of being involved in an accident—the bigger engines encourage speed-related collisions and reckless driving. Combine this with the fact that some convertibles and classic vehicles don’t provide the same protection as modern vehicles, and you’ve got a highly-risky insurance policy.

Your insurer is aware of these costs and passes on the price to the consumer in the form of high premiums.

Your insurer is also aware that consumers want the cheapest solutions to their insurance needs for their Bentley’s and Porsche’s. This is why some insurance companies reduce coverage  that you may not be even aware of. These discounts may seem enticing until you’re involved in an accident, that is.


Money-Saving Pitfalls?

There a number of ways that insurers reduce their risk by under-insuring consumers. If you’re not absolutely sure of the following examples of “cheap” auto insurance for luxury vehicles, you may want to review the fine print of your current coverage:


  • “Unnecessary” Coverage? Some insurance agents may steer you towards dropping coverage as a money-saving matter for you and a reduced-risk to them. One common strategy is to drop all coverage except maintaining comprehensive coverage. While this may cover you from theft and a natural disaster (flood insurance, anyone?), one minor accident may not only be inadequately covered, but it would raise your premiums, too.



  • Mileage: Drive your classic car often? If you do, you should be aware that luxury vehicles are typically insured for only a limited mileage policy per year. While you can exceed those miles, many companies drop a significant portion of the coverage, as you’re putting yourself at a greater risk on the road. By seeking discounts for lower mileage, be realistic with your needs—a few trips to the store can add up before you know it. Often, policies with more mileage aren’t significantly higher, so it may be a worthy step to protect your investment if you participate in classic car shows and meet ups.


  • Coverage: Another strategy that insurance companies typically employ is dropping the amount of drivers from your policy. The less drivers, the less risk, right? Be honest with you and your family’s use of your collector’s item—one casual ride around the block with your teenager or relative may be a fender-bender that may have to be fixed entirely out-of pocket.



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If you are considering insuring your luxury vehicle, it makes sense to avoid the pitfalls. But if you’re confused by the fine print, contact the advisors at RiskBlock to find a policy that fits your vehicle so you can ride in luxury and style, knowing you’re fully covered.

Author: Liam Dai
Lead Insurance Advisor for RiskBlock. Disclaimer: This Blog/Web Site is made available by the author or insurance agency for educational purposes only as well as to give you general information and a general understanding of the insurance coverage, not to provide specific insurance advice. By using this blog site you understand that there is no professional advice and professional client relationship between you and the Blog/Web Site publisher. The Blog/Web Site should not be used as a substitute for professional advice from a licensed professional insurance agent in your state. All scenarios are different and unique to the situation.