For those who love cars, buying a luxury or exotic car may be the ultimate dream. However, such cars tend to attract relatively high auto insurance premiums as compared to standard or regular cars. Here are a few reasons for this.
They Require Special Expertise
Most luxury or exotic cars are expensive both to buy and to repair. This is because they tend to have systems that regular cars don't have, and such systems require special training to fix. A mistake in the repair of an exotic car is also more likely to cause an expensive fix compared to a repair mistake on a standard car. All these mean that those who repair exotic or luxury cars tend to charge more for their services than regular motorists.
They Require Unique Replacement Parts
It is not just the labor costs of repairing exotic cars that cost a lot of money, but also their replacement parts. With standard cars, you can even go to a junkyard and salvage car parts and use them to fix your car. However, this is not possible with exotic cars, and you may sometimes have to order for unique replacement parts. All these parts cost money that your auto insurance premiums must cover.
They Are Expensive To Replace
As previously mentioned, luxury cars are expensive to buy. What is more, many exotic cars don't lose their value as fast as regular cars; some of them even appreciate in value with time. This means that your auto insurance company may be hit with a large settlement bill when your luxury car is stolen or written off in an accident.
They Attract the Young Crowd
Some luxury cars, particularly those that are built like race cars or those that have gigantic horsepower are known for attracting the young and moneyed. Unfortunately, young people aren't known for their safe driving skills. As such, they cause more accidents and incur more vehicle damages than their experienced counterparts, which automatically necessitate high insurance premiums.
Some of Them Are Thief Magnets
Lastly, some luxury cars are also expensive to insure because they are thief magnets. This is partly because such cars fetch premiums prices in the black-market; some of them are also stripped off and sold for their parts that also fetch good prices. This is particularly true of premium cars that are borderline mainstream.
Therefore, you should be extra careful with your auto insurance issues if you want to own or already own a luxury car. Talk to an auto insurance company like Affordable Insurance to help you adopt measures that can help you manage your premiums.
After I graduated college, I started to feel like an adult. I started teaching at a school. I also bought a car. And I became the owner of several insurance policies. I obtained a comprehensive insurance policy for my car. I also secured my first life insurance policy at this time. I didn’t want my family members to be burdened with funeral costs if I suddenly passed away. A few years after graduating college, I became a homeowner. After this joyous occasion, I invested in a homeowners insurance policy. On this blog, I hope you will discover the most common types of insurance people purchase.