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Luxury car insurance

A guide to luxury car insurance

Key takeaways

‘Luxury car insurance’ isn’t a specific product that you can purchase for your prestige car (except from very specialist insurers). However, you can take out standard car insurance (like comprehensive) to insure your vehicle. There are a few important things to keep in mind when insuring your luxury vehicle, including:

Insurance tips for your luxury vehicle from Adrian Taylor

As Compare the Market’s car insurance expert, Adrian Taylor has these tips for luxury car owners navigating insurance for their vehicle.

Install security devices in your car for added safeguarding

Installing immobilisers and car alarms (if your vehicle doesn’t come with them already) can not only help deter thieves, but it may help lower your insurance premiums.

Restrict younger drivers from getting behind the wheel

Young drivers cost more to insure, so you can lower your insurance costs if you restrict the age of drivers where possible. This means you wouldn’t let anyone below a certain age, such as 25, drive your prestigious car.

How insurance for a luxury car works

What does insurance for luxury cars cover?

Luxury and prestige car owners can benefit from having comprehensive car insurance which is the highest level of car cover. While specific features differ between insurers, some things that are commonly covered by car insurance can include:

You should always read the Product Disclosure Statement (PDS) of any insurance product before purchasing, as the PDS will include the full details of the limitations, exclusions, terms and conditions of your cover. You should also read the Target Market Determination (TMD) to check whether a policy is suitable for you – and your luxury vehicle.

How much does insurance for a prestige car cost?

The cost of car insurance for luxury cars is likely to be expensive. One of the contributing factors could be that specialised repairs and replacement parts can be quite hard to source and expensive (usually imported). As with most insurers, having full comprehensive cover for your luxury vehicle will always be the more expensive option over Third Party Property Damage and Third Party Fire and Theft, as it provides the highest level of cover available.

Your car insurance premiums are also heavily influenced by several factors that are individual to you, like:

What is standard comprehensive insurance with an agreed value?

Agreed or market value is a payout option from an insurer for the total loss of the insured vehicle. For a slightly higher premium, you can insure your luxury car for an agreed value, instead of the market value that car insurance policies usually use. Given the value of prestige vehicles and luxury cars, you may opt for an agreed value as these vehicles can be expensive to repair and may appreciate in value over time.

Why should I get insurance for my prestige car?

The same reason you should get car insurance for any vehicle: to give you financial protection for when something goes wrong. Whether your expensive car is parked in your home garage or on the road, a prestige and luxury car is a substantial investment you’ll want to protect.

Further information

What is considered a luxury or prestige car?

A prestige or luxury car can be a highly engineered performance vehicle or a vehicle with a high-end market value. These can include vehicles with specific modifications, or made by famous marques such as Ferrari, Lamborghini, Porsche, Aston Martin, Rolls Royce, Bugatti and more.

Some key factors that insurers consider when classifying your car as luxury or prestige can include (but aren’t limited to) the following:

Can I get insurance for my luxury car from every provider?

Not all insurers will agree to cover high-end luxury cars (especially without agreed value cover), even with their standard policies. This can be for several reasons, including:

This is why you may need to go to a specialty insurance provider to get cover for your high-end vehicle.

How can I save on my prestige car insurance premiums?

Even the most basic luxury or prestige car models will typically incur significant insurance fees on top of a hefty price tag and upkeep costs. However, there are some very simple ways you can save on insuring your high-powered beauty.

These include:

Meet our car insurance expert, Adrian Taylor

As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.

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We do not compare all car insurers or products in the market. Any advice given above is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances, and before you make any decision about whether to purchase a product, you should read the PDS for that product.

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