So you’re about to take the plunge and purchase a luxury car. Perhaps you just got a raise, or inherited some money or won the lottery. No matter what the reason, your decision to buy a more expensive car will certainly lead to even more expenses – not least of which is higher car insurance.
It’s important to note that not all drivers of the same car will end up with the same rates for insurance. Rates will vary depending on driving records, location, the use of the car, and more. But rates do change depending on the value of the car and the potential costs for repairs.
In some places, like British Columbia for example, there is a movement to increase premiums for cars worth more than $150,000. There are more high-end luxury cars per capital in Metro Vancouver than in any other North American city according to the Insurance Corporation of British Columbia. So drivers are losing options of where to buy their insurance and how much they will have to pay to have high-end vehicles insured.
But each province is different and determines the coverage each driver must obtain for minimum protection. There are some tips, however, for lowering costs of luxury or exotic auto insurance:
Shopping – Don’t accept the first quote you receive from your current insurance company or even a second one. Comparison shop for your next provider and use as many sources (Internet, your own research, friends and family etc.) Make sure you exhaust your possibilities and get as many quotes as possible. It’s possible to save significant amounts of money simply by doing your homework and making sure you know the options available.
The Car Itself – What type or car are you looking at? Is it new or used? Is it for business or pleasure? The answer to these questions will certainly affect your rates. Make sure you look at the insurance options before you make your purchase. That way you’ll be able to tell what’s affordable and if you want to alter the kind of car you are getting (to help bring the costs down). There is a complete list of rules that decide whether car is high value.
Overall, consumers should consider wants versus needs when buying a luxury car. Insurance rates will necessarily go up, due to the high performance and costs associated with fixing such vehicles, but how you choose your insurance and plan for the right coverage can help bring down some of the costs on your new purchase.