How Auto Insurance for Expensive Vehicles is Different

When it comes to auto insurance, everyone wants to save some money because this is an added expense for something that might happen i.e. accidents, your car breaking down etc. While most people looking for cheap auto insurance try to get the best rates, there are some who are lucky enough to afford expensive vehicles and of course be able to get such vehicles insured but how are expensive vehicles different from a regular car?

Many keep raising the issue on why it is often better to get an expensive car rather than a regular one. The reason behind this argument is that most of these cars are so modern that they have the best safety features that regular cars do not have and they also usually have better performance. Such cars however are expensive to insure because they usually are costly to repair thanks to their exotic and unique parts. It is interesting to note though that there are cars from major automakers i.e. not the makers of exotic cars that are quite expensive to insure. Why is this so? According to experts in the car insurance industry, a car owned by someone who lives in a Metropolitan area can cost as much as 500% more than the same make and model owned by someone who lives in a sleepy town. While many would say this is unfair, insurers have reason to believe that they are more at risk for paying for a stolen car or a car that needs to be repaired due to a traffic accident if that car is driven around in a crowded area where there are typically more cars than say in a small town.

When it comes to high performance vehicles, there is a need to look for an insurance company that specializes in insuring exotic or expensive cars because odd as it may sound, some traditional insurers do not approve coverage to high performance auto owners. This isn’t just because of the car though because other things are factored in which includes one’s age, sex, where one lives, among others but if you own a high performance car and have maybe a few violations, you can be sure that a traditional auto insurance company will turn you down because you are driving a high risk model and you’ve had a few violations on the road.

How Auto Insurance for Expensive Vehicles is Different

Types of insurance policies and cheap car insurance

Looking for cheap car insurance can sure take a lot of time and make you believe that it’s hard to get. Well, this can be true if you’re looking for a cheap variation of an expensive policy type. That’s right, there are different types of insurance policies available on the market, and depending on which of them you choose the cost of insurance will vary among different amounts of money. That’s why it is crucial to understand the main concepts of basic types of policies and the differences between them if you really want to get adequate and cheap car insurance. Here’s a short description of each basic policy type:

Coverage using third-party liability

The most stripped down policy type features only the essential coverage type you need to legally drive a car in most states. This coverage will pay out only in case of an accident that you’ve caused, and will cover injuries and damage inflicted to the other party. Since this policy type is stripped of any additional options, it’s the cheapest you’ll find on the market.

Coverage using third party, fire and theft

This policy type extends the range of situations when it covers you. Except the usual third party liability, it also features fire and theft coverage to address some of the most common perils a car may be subjected to besides collision. This type usually costs a bit more and will best suit drivers who have either paid out their loan or financed their purchase on their own.

Fully comprehensive insurance coverage

If you’re looking for a policy that has it all, this is it. Fully comprehensive auto insurance policies usually include the entire spectrum of coverage options an insurer is ready to provide you with, and doesn’t require you to be at fault in the accident. Naturally, this policy type will rarely grant you cheap car insurance, since it’s the most expensive you will find. And at the same time, it’s the most common policy type in the USA because lending institutions make it a requirement when giving out an auto loan. Still, you might want to shop around to see if there are more affordable offers on the market.

Opting for specialized coverage

Special car types require special policies that cater to the need of their owners. Such is the case of retro, customized or unique vehicles. These policies are usually expensive due to their limited nature and include various requirements that aren’t featured in any other policy types.

Types of insurance policies and cheap car insurance