Perhaps you have the money to splurge on your next vehicle. A custom-built Porsche might seem much more enticing than a standard vehicle. However, if you’re going to buy an expensive car, consider the cost risks you assume by driving it.

Those with expensive cars should consider buying insurance with high coverage. These policies can usually better address the risks associated with affluent drivers.

Why Consider High-End Insurance?

Many vehicles may cost well over six figures. They may contain specialty parts, enhancements or custom designs. The costs to maintain these cars often are more than those of the standard car. If an incident damages the vehicle, drivers might find themselves facing significant costs for repairs.

Even if a driver has the money to cover these costs, no one likely wants to shell out significant repair funds. High-value auto policies usually contain very high coverage limits. High limits might better address the costs to repair or replace an expensive car.

Benefits of Higher Coverage Levels

By getting high coverage, affluent drivers can often increase their own financial security.

• Higher collision limits can help drivers pay for most or all damage from wrecks. High comprehensive protection can pay for damage from things like fires or theft. These types of protection may help drivers replace high-end vehicles with similar models.
• If you can afford to carry a higher deductible on your policy, you may actually lower your cost risk to insurers. It might demonstrate to your insurer that you can afford repairs without them having to step in. This may lower your policy premiums.
• Carrying more uninsured/underinsured coverage can help you protect your wallet if you collide with a driver without enough insurance. This driver’s insurance (or lack thereof) might not cover all costs associated with high-end vehicle repairs. Your own coverage might be able to step in in such cases.
• Always carry high liability insurance limits. If you are at-fault in an accident, someone might view your expensive vehicle as a sign of deep pockets. Ask yourself, do you have enough money to cover costs related to lawsuits or liability claims? Even if you do, this coverage can help you not have to spend it.

Yes, it may be more expensive to pay a premium on these policies. This is due to the high cost risks associated with expensive cars. But, drivers can usually save themselves a lot of money in the long run. Paying a premium for higher coverage levels is usually much cheaper than paying for damages. If you need resources for determining your coverage, call McFarlin Insurance Agency, LLP at 410-312-7800 for more information. 

Helpful Resources:

Insuring and Protecting High Value Personal Property

Am I Covered if My Parked Car was Hit?