How To Shop For Luxury Car Insurance

Whether you’re driving a comfortable Cadillac or a snarling AMG, chances are you’ll use your luxury car as a place to relax, unwind, and socialize on the go.

The right high-end car can be a valuable tool for its driver: able to pull elements of their luxury lifestyle into their daily commute to create an on-the-go social lounge, sanctuary, or even concert hall. In this way, luxury cars allow their driver (and passengers) to make the most of every moment, even when they’re stuck in traffic in a mid-February snowstorm.

AutoGuide.com thanks Toyota Insurance for sponsoring this insurance series

These days, luxury cars are available in more flavors and functionalities than ever. Looking for mobile office that can do 0-60 in 3.5 seconds? A leather-lined Lexus with an audiophile stereo? An SUV so comfortable it uses radar-guided shocks to pre-absorb bumps in the road? It’s all out there.

Whatever luxury car flavor you find most enticing, two things are true:

First, you’ll be paying big dollars for that taste of the motoring high-life. Second, you’ll want to make double-sure you’ve got an insurance policy that perfectly reflects the protection you want for your own specific luxury car experience.

“If you are blessed to find yourself among the 1%, you may be wondering if this complicates the insurance buying process” explains Raymond Blackburn, an insurance expert with Toyota Insurance.

“The good news is... not necessarily. But, it is best not to make a go of it on your own, no matter how comfortable you are working directly with companies online. If you have a lot of assets to protect, it is essential that you work with a professional insurance agent knowledgeable in high-net-worth coverage to be sure you are fully protected. At a minimum, your agent will make sure you purchase an auto insurance policy with liability limits high enough to protect the value of your assets. Many times, auto insurance policies do not provide sufficiently high limits, so you will need to buy what is known as an umbrella liability policy that provides not only higher limits but extends liability coverage to other types of losses.”

Remember: the best value for your insurance dollars come when you’ve got full confidence, and no un-answered questions.

Contacting an insurance company like Toyota Insurance is a great first step in your luxury car shopping journey. They can start a file for you in advance of your purchase, and they’re expert at finding the best policy for you based on your unique situation, location, and needs. Be sure to check reviews and online owner communities for a look at other customers' real-life experiences as you consider your choices. 

Most luxury cars have online owner forums and communities separated geographically, and these can be a great place to ask around for insurance recommendations, too. Especially when dealing with big claims that could take your vehicle out of commission for any length time, excellent customer service is extremely important.

“Maybe you have an exotic, collectible, or antique car in your collection” says Blackburn.

“In this case, you’ll want to seek out an insurer that provides ‘agreed value’ coverage. You and the insurer will review an appraisal of the vehicle and agree to the coverage amount before the policy is bound. While you may need an updated appraisal at every policy renewal, in the event you have a claim your car will be covered for the agreed value, not the depreciated actual cash value (market value). Most auto insurance companies settle claims based upon actual cash value, so agreed value policies provide a very real benefit. Be sure to avoid stated value policies, which sound like agreed value, but pays the lesser of stated value or actual cash value. Stated value policies are appropriate in very rare circumstances…probably not yours!”

That’s why you’ll want to consider some policy specifics that can make life easier if your car is out of commission for repair. For instance, some insurers offer roadside assistance as a standard or add-on benefit, including specialized towing programs that include the unique equipment and training required to tow your luxury car to its dealership for repair.

“Some of the benefits of buying coverage with an ultra-preferred insurer include a higher level of claims service, the use of original equipment manufacturer (OEM) parts to repair the vehicle, and a much nicer rental car to drive while your car is being repaired” adds Blackburn.

Then, there’s Guaranteed Asset Protection insurance, GAP insurance for short. Your insurance provider may offer GAP insurance as an optional add-on, and it covers the difference between the amount you owe on your car loan and the actual cash value if it’s stolen or totaled. Put simply, GAP insurance protects you from financial loss due to depreciation.

It’s a great way to protect your investment