Luxury Car Insurance Doesn’t Have To Be Expensive

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You can see it now: the style, grace, and elegance of a luxury car. Then, of course, there’s the thrill of that extra spurt of power when you tap on the accelerator. The car is better than anything you’ve ever owned … and you’ve had some nice cars. An added bonus is how your neighbors stare slack-jawed when you drive past them.

Perhaps, all this is a fantasy right now. But, it’s soon going to become real enough. In fact, you’re almost ready to make the big purchase. Still, there’s one thing that bothers you: car insurance. Will you need to get special luxury car insurance? Will you have to give up all the cost benefits of your current insurance policy.

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More In Car Insurance?

It’s quite reasonable to expect to pay more to insure a luxury car. After all, the car does cost twice as much as your earlier cars. Besides, the exquisite look and feel, the engineering alone is worth the price.

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Generally speaking, your expectations are reasonable. You may have to pay more in overall premiums to insure your luxury vehicle. The reason is simple: your car insurance company will have to pay more for repairs if you cause an accident.

Save on Car Insurance

Fortunately, not all car insurance companies observe this line of logic. Some companies like focuses on a customer-centric approach. What exactly does this mean? It means that they will review your driving history, notice where you are eligible for a discount, and work with you to save money on your car insurance — even if you happen to drive a luxury car.

How? After all, the auto repair shop will still charge you more for parts and labor then if you had an ordinary car.

Well, there are still ways to keep your overall insurance rates reasonable. Here, for example, are 5 ways to keep your car insurance rates down, even if you are driving a luxury car:

1. Maintain a good driving record. (Just because your car can drive faster than a bullet, does not mean you have to break posted speed limits). The longer you go without getting a ticket or making a claim, the more your car insurance rate will drop. In fact, you will be able to notice this happening every 6 months.

2. Be careful who you add to your policy. Do not allow your teenage sons or daughters to drive your car. Although they may be excellent drivers, insurance statistics consider teenage drivers a risk. Adding any of your adolescent children to your policy is just asking for trouble. Insurance companies, you have to remember, base their rates on statistical averages. They will not interview your teens to see if they are an exception to the rule.

3. Join a luxury car owner club. Membership in such a club sends a positive message to your insurance company. It’s a statement that you are proud of your car and willing to take special care of it.

4. Ask for a deductible. You can get a deductible to keep costs down. While a $1,000 deductible may be overdoing it, a $500 deductible will work well. In the long run, it will save you a significant amount in premiums.

5. Cut down your mileage. Unless this is your only car, chances are that you will not be driving it to work and trips to the grocery store. Most owners of luxury cars only drive their cars on special occasions. If this is you, then you can apply for pay-as-you-go insurance. If you can’t get this type of insurance, you may still be eligible for a discount for low mileage. An insurance company is willing to drop its rates because you are now less of a risk. The probability dice is now loaded in your favor.

Types of Insurance

Once you’ve figured out how to reduce the cost of insurance, figure out what kind of insurance you need.
Obviously, if you’ve spent a good sum of money on buying your car, you don’t want to underinsure your car. It doesn’t make much sense to just get your state’s minimum insurance coverage. Liability insurance will not cover the money you invested if you get in a serious accident. If your car gets totaled, you will experience a severe financial loss.

Collision insurance is a better choice. It will cover major repairs to your car or even replacing the cost of the car.

Still, this alone is not enough. It’s a good idea to get comprehensive insurance, too. This will protect your vehicle if some other disaster, other than a collision, were to occur. For instance, you’re covered if your car is vandalized or stolen. You’re also covered if there is a natural disaster, like a fire or flood.

While comprehensive and collision coverage will work well, also consider gap insurance. This applies if you financed your car. If you have an accident, your insurer will do more than cover the replacement or financing cost. It will take care of the market value of your car.

A Winning Scenario

You worked hard on your career. You rose up the ladder of success. You handled your money well, spending, saving and investing wisely. Now, you can afford to buy a luxury car — and get reasonable car insurance rates to boot.

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