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Tips for Insuring Your Luxury Vehicle

If you own a luxury vehicle, it’s probably one of your most important possessions. A Bentley or Ferrari is more than a status symbol; it represents the hard work that went into earning such a magnificent vehicle. Such a large investment deserves to be protected, and an appropriate auto insurance policy is the best thing you can buy to keep your vehicle safe.


Despite their necessity, auto insurance policies aren’t always cheap. Luxury vehicle insurance tends to be more expensive than insurance for other cars as insurance companies assume a larger risk. After all, if a Lamborghini is totaled in an accident, the insurer must pay substantially more to replace it than they would for a Toyota or a Ford; thus, luxury vehicles are perceived to be risky of necessity given the potential financial liability for the insurance company. Fortunately, there are a few ways to reduce the cost of luxury auto insurance. By following these tips, you can ensure that you get the best deal possible while getting the protection you need.

Be Sure the Vehicle is Insured at its Value


You don’t want to run the risk of getting less than the vehicle’s worth in the event of a serious accident. Ask the insurance company outright how much they would value your vehicle in the event of a total loss. If necessary, consider purchasing a “declared value” policy, where the vehicle is valued through an appraisal rather than by its market value. This is especially important if your car is a classic or is heavily customized.

Consider Raising Your Deductible


Most policies have a $500 collision deductible, but amounts of $1,000 or more are available and can keep your monthly premiums low. As long as you have the deductible amount set aside in savings, you can enjoy the reduced insurance cost without worrying about potential accidents.

Take Advantage of Discounts


Some companies offer discounts for behaviors that come naturally to an owner of a luxury vehicle. For example, you can save money on insurance by keeping your vehicle stored in a garage at night. You will also pay lower premiums if you drive your vehicle fewer than 10,000 miles per year. Be sure to discuss any of these habits with your insurer to secure substantial savings.

Consider Writing an Exclusion Into Your Policy


If your spouse has a bad driving record or you have teenage children living at home, it may be prudent to exclude them from driving the luxury vehicle. Insurance rates for an experienced driver with no history of accidents are very different than those of a high-risk driver, and high-risk drivers coupled with high-cost automobiles can create costly premiums.

Find an Insurer That Specializes in Exotic Vehicles


Some insurance companies cater to collector car owners, foreign vehicle owners, and high-performance sports car owners. Because these companies are specialized, they can often offer better discounts and more competitive rates than their general insurance competitors. Additionally, they usually network with repair companies and others who are well-qualified to fix any damage your vehicle may sustain.

Of course, the best way to ensure the best prices on auto insurance is to comparison shop for the best deal. By getting a quote online from as many insurance companies as possible, you can find the insurer that will give you the coverage you need and the most reasonable price.



Kenneth Tomlinson is a freelance writer who focuses on insurance, finance and business topics.

About the author

Praveen Rajarao

Praveen Rajarao is an Entrepreneur and in his spare time blogs on his website –http://www.dailymorningcoffee.com and http://www.pbgeeks.com. His topics range from blogging to technology to affiliate programs and making money online and how-to guides. Daily Morning Coffee is also accepting Guest Posts from Professional Bloggers at this time, take a look at “Write For DMC” page for more details on the same.


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  • Unfortunately I do not own one.. yet. However this is a great article as the information is well structured and easy to understand. Thanks for sharing this! Cheers

  • If it weren`t for you I would have never imagined how many ways are there to reduce the cost of a policy. As I cannot afford a luxury vehicle and I assume that I never will, I still wonder if the same arguments can be used to reduce the costs of any car. Do they? Kudos on the article.
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  • I appreciate your effort and time spent on making such a great and self-explanatory tutorial. I am still a bit clumsy when it comes to using WordPress but if you plan on filming some more of such videos I swear that I`m going to be a sure hit. Thank you very much!
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