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The 10 Dangers of Choosing Cheap Insurance for Your Luxury Car

You’re not imagining it — the average cost of car repairs has significantly increased in recent years.

As the owner of a luxury vehicle, we know that you take protecting your beloved car seriously. However, we understand that you’re always on the lookout for ways to save when it comes to both maintenance and insurance. But, is cheap insurance for your car, particularly as the owner of a luxury vehicle, really such a good idea?

Read on to learn why it’s always smarter to make an investment in more complete coverage instead.

1. Permissive Driver Coverage May Be Reduced Or Eliminated

Are you the only person in your home that drives your car? If not, then cheap insurance likely isn’t the best idea for your luxury vehicle. Why? Because if you let your husband or teenager take your baby out for a spin? You likely won’t receive coverage if either one of them gets into an accident or is pulled over for breaking the speed limit.

Even if your cheap new policy allows for some permissive drivers (AKA, the people you willingly loan your car to), they could also be excluded from coverage if they’re under the age of 25. We’re pretty sure your teen isn’t going to wait until they’re halfway to thirty to drive your Bentley.

In some cases, permissive drivers may never be covered under a so-called “affordable” policy.

2. Not All Repairs Will Be Covered

So, the worst has happened, and you’ve just been in a car accident. While everyone inside your vehicle is physically fine, it’s a different story when it comes to your car. After the collision, your luxury vehicle is in need of some serious repairs. If you think that cheap insurance plan is going to cover those repairs…  not likely.

Under most insurance policies you’d be able to have the complete cost, or nearly the complete cost, of your repairs covered, though this might change if the car is totaled. Under a shoddy insurance plan, however? The car’s depreciation amount — i.e., what it was worth after the accident, and not before it — is what’s taken into account when it’s time for an insurance company to declare coverage.

This means that you’re certainly not likely to get all of your repairs paid for by filing an insurance claim.

3. Your Driving Record Will Be Checked More Often

Think that cheap insurance means you’ll still be able to get away with having your car checked only one time a year? Think again; especially if you don’t exactly have the cleanest driving record in the world. You can expect insurance companies who offer extra-affordable coverage to notice. This means they’ll likely review your driving history at least twice a year.

If you’ve been in an accident or dinged your car then you can certainly expect those once-cheap premiums to go up. Nothing good can last forever — especially cheap car insurance.

4. You Won’t Be Covered For Business Purposes

Are you planning on using your luxury vehicle to pick up clients and shuttle them to and from important meetings? Maybe you’re even considering using a luxury sedan or larger vehicle to transport items for delivery from your home business.

If you go for a cheap insurance policy your vehicle won’t get any kind of business coverage. So, if you’re planning to make your car a part of your working life in any way, it’s best to invest in a complete car insurance policy.

5. Kiss The Perks Goodbye

One of the best things about choosing to go with a more standard car insurance policy is better (or more) perks. Usually, these types of policies come with an incentive to get you to sign up. For example, you can say goodbye to the possibility of accident forgiveness when you go with a more bare-bones, affordable insurance plan. You also won’t be able to enjoy things like a lowered deductible.

If these things are important to you, then it may be worth paying a slightly higher premium to get the features you actually want or need.

6. Your Mileage Cap Will Be Lowered

Do you use your luxury vehicle fairly often? Do you enjoy taking it out for longer drives, entering it in races or auto shows? Is it your most frequently-used vehicle? If so, then we can pretty much guarantee you a cheap car insurance isn’t a good option for you.

Why? Because, if you’re driving a luxury car, these affordable insurance companies will do everything possible to stop coverage after a certain amount of miles. Sometimes, this mileage can be as slow as just 2,000 miles in a single year.

For most people — especially for those who love to show off their sports cars — this just isn’t enough. Always look for a policy that will allow you to get to where you need to go.

Avoid A Cheap Insurance Policy For Your Luxury Vehicle

By now, we’re sure we’ve done an excellent job of convincing you when it comes to protecting your luxury vehicle, cheap insurance isn’t the best way to go. Not only does affordable insurance not actually save you much money in the long run. It will also likely be incompatible with your overall lifestyle and make/model of vehicle.

You’ve invested a lot in your luxury car. Why cheap out when it comes to taking good care of it?

If you live in the Los Angeles area and want to learn more about the right kind of auto insurance for your luxury vehicle, then get in touch with us.

We’ll help you find both the company and the policy that’s right for you.