Many first-time luxury vehicle owners make the mistake of buying an insurance policy with the lowest premium but, after an accident, they find out they are not given the level of customer service they expect and the insurer may not pay for the exact repairs they were expecting.
You spent a lot of money on your high-end car. If you skimp on the insurance, it may not be repaired the way you want and its value may decrease after repairs.
The following are options that you can get for your luxury car insurance:
Original parts
You will want parts replaced with original equipment manufacturer (OEM) parts to maintain the car’s value. Typical insurance allows the insurer to use “like kind and quality” replacement parts for repairs.
With luxury car insurance you can be assured that it will pay for OEM parts to be used to repair your car if it is damaged.
And if you own a rare car and a replacement part is unavailable, the insurance will often cover reproduction of the part.
Body shop of your choice
Body shops abound, but very few of them can work on a high-end vehicle.
So, if your luxury car is damaged you will want a body shop that you can trust to repair your vehicle properly.
Make sure your policy allows you to choose the body shop you prefer.
No depreciation for parts
If your two-year-old tires are damaged in an accident, a typical policy will subtract depreciation for the miles you logged on those tires when paying the claim.
If you have a luxury car with $4,000 worth of tires, you want insurance that covers the full amount to replace them.
Total loss event features
You can get a policy that will waive your deductible in case of a total loss.
Also, a typical car insurance policy will pay you for the value of your vehicle, minus depreciation in case of a total loss.
But if you have appropriate insurance, you can often get a policy that would pay you an agreed value of your vehicle without depreciation should it be totaled.
If you have an agreed value included in your policy, you can be assured that the settlement amount for the car will be the same as the policy stipulates.
Also, in the event of other covered damages such as theft, your deductible is waived and no depreciation applies.
Some policies also require the insurer to pay you within 48 hours of settling a total loss.
This is especially important for a high-end car, since you don’t want to wait weeks or months to receive the check to purchase a new vehicle.
