Insurance rates for luxury cars tend to be higher than for other cars. However, this doesn't mean that you should break the bank every time you are paying for our luxury car coverage. The following tips will help keep your rates low:
Research Rates before Car Purchase
The relationship between rates for luxury cars and ordinary cars isn't linear. A car that costs $100,000 isn't likely to have insurance rates five times that of a car that costs $20,000. The rate also depends on other factors such as your state and your insurance carrier. However, expect to pay thousands of dollars to cover your luxury car; some cars cost over seven thousand dollars to cover. This may not be easy if you don't have the budget for it. Therefore, unless you are a millionaire (and you don't have to be one to buy a luxury car), it's advisable to research your coverage rates before buying a luxury car.
Watch Out For Special Risks
If you are already paying high insurance rates, you don't need anything to drive the rates higher still. Anybody that the insurance company considers a high-risk driver should not be a named driver on your policy. This means your teenaged child or your niece with multiple drunk driving violations on their driving history shouldn't drive your car. Otherwise, your already high rates will go through the roof.
Join a Luxury Car Club
Joining such a club may help you lower your rates without doing anything further. Many car insurers offer discounts to members of luxury car clubs. This is possible because members of these clubs are perceived to be proud owners of their cars who go to great lengths to protect their vehicles.
Try Usage-Based Auto Insurance
Lastly, you may also lower your rates by opting for usage-based auto insurance. This form of insurance is charged based on specific parameters the type of vehicle you drive, how long you drive (time and distance), where you drive, and how you drive (that incorporate things such as speed and braking). Usage-based insurance may be best for you if your luxury car isn't your primary car, and you only drive it occasionally.
No single coverage that fits all luxury car owners. You need to evaluate your driving habits, history, mileage, and use of the car to help you come up with the right coverage for it. An insurance agent from an agency like House-Chilson & Associates will help you bring all these factors together and choose the right coverage for your situation.