Buying a luxury car is not everyone’s cup of tea, they say! This statement proves not to be fitted as buying a luxury car is not a big deal for many. With a host of attractive deals and easily available financing options, people even don’t think twice before purchasing a fancy car. Well, obviously those who can afford it.
Not only these cars come with a cost, but their maintenance also is not less than a headache. Ignore the huge dent; even a minor repair cost will easily burn a big hole in your pocket. However, with car insurance, the maximum you can claim for a luxury car, for instance, Rs 50,000 under Bharti AXA Car Insurance. This sum may appear a small amount for many such car owners. Still, having a comprehensive insurance cover is recommended.
Luxury Cars and Insurance
Buying car insurance for a high-end car is not rocket science. The best part is the Indian insurance sector has been flooded with end numbers of plans to choose from. Mostly, the plans are clubbed with accessories or other car servicing packages. Moreover, as you can’t avoid the mandatory clause which compels you to have third party insurance.
However, considering the maintenance, their repair could run up to a lot forcing you to break the banks, it would be wise to look for a policy with wholesome coverage, along with add-ons. Add-on covers boost the basic policy benefits and ensures increased coverage for you. You should also consider that there are limited authorised workshops where these cars can be repaired. So, with car insurance, you can be assured for the network garages listed with the insurer.
Given that, let’s consider some of the ideal add-on covers for your brand new luxury car:
Add-on Covers to be Loaded with Your Basic Car Insurance
You may find these add-ons useful if own a luxury car:
- Depreciation Reimbursement
This cover is a must if you own a high-end car. Depreciation reimbursement cover ensures the full value of your car in case of accident or total loss. With this cover, you can claim for the complete value without considering the depreciation on the parts replaced.
This cover is essential to cover consumables as well, as the cost of repair or replacement of these parts is very high, hence, without this, the owner has to bear a higher depreciation amount in case of a claim.
- Engine Protection Cover
The engine is one of the expensive parts of your ar. And when it is for luxury cars, you can imagine how much does it cost. During the rainy days, your car engine is more aggressively prone to damage due to water ingress. The repair expenses can cost you an arm and a leg if you don’t have this cover, which is not less than 30%-40% of the actual cost of the car. Hence, a brand new luxury car owner must have engine protection cover. However, while buying the cover you should compare the coverage offered by the different insurer by using car insurance calculator and go for the best deal.
- Roadside Assistance
Typically, the roadside garages may not be capable of repair an issue you face with your luxury car. The servicing requires a certain skill set, which can be ensured only with the company-authorised garages.
Your Bajaj Allianz car insurance doesn’t provide towing assistance or roadside facility, despite offering comprehensive cover. If you don’t opt roadside assistance as a part of your comprehensive cover, private towing services are available in case of an emergency. However, they may not be reliable or push your vehicle to lead additional damage, even before it gets to the workshop. So, better opt for this cover and stay covered for the expenses incurred.
Some Insurance Tips
If you’re up to buy a luxury car model, before that, confirm with the broker your insurer about the basic premium. The person will have detailed knowledge about the premium of a regular sedan, hatchback or SUV cars. If you are buying a used-car, by avoiding add-ons or comprehensive cover you can save on premiums.
Secondly, if you have taken other insurance from a particular company, buying car insurance from the same insurer will aid in a reduction in premiums. In that case, you can ask for a discount up to a certain amount for being constant with them. However, you can compare the other available quotes as getting the best is always preferable.
Thirdly, only buy it from well-known insurance providers. With the Indian insurance sector growing at a rapid pace, the cases of frauds are at the rise. You should double check on the credibility of the insurer before saying yes to a deal.
Fourthly, read and understand the policy wording carefully. There are hidden clauses that need your attention. Thoroughly read the policy terms and conditions before signing on the dotted line.
How classification Impacts on Insurance Premium?
The classification of car impacts on the premiums. Here’s how:
Car Make, Model, and Variant
While calculating car insurance premiums, the insurers take into account the model, make and a variant of the car. The more expensive the model is, the more will be the basic premium. It will be more if you buy add-ons. For instance, your Bajaj Allianz Car Insurance premiums will go up if you have an SUV car. Similarly, if you go for an add-on like zero depreciation, again the premium will be on the higher side.
The manufacturing date of the car also determines the car premium.
Type of fuel matters as a Car with CNG fitted will have a higher premium than the petrol or diesel car.
Wrapping it Up!
Buying a luxury car is easy but maintain is not that simple! Hence, the insurance experts recommend a comprehensive cover with value-added services for luxury cars. Over the past years, car insurance cover has become extremely comprehensive while offering a range of customisable add-ons. While overlooking comprehensive cover would be a blunder, refusing the urge to indulge on all highly-promoted add-on covers is advisable. However, to strike the right balance, you need to ensure thorough research.