Motor Insurance for Luxury/Premium Vehicles

Cars have become a fundamental need for individuals with jobs and family alike. Defining luxury, the modern day cars are equipped with high-tech features that could only be imagined a decade ago. Today, with the advancement of fintech and the ease of credit, the owners of vehicles with luxury features have increased tremendously in India. With the increasing demand, more automobiles companies are defining luxury through innovative features while keeping the price competitive enough to be afforded by people wanting to buy a quality car.

Given that the Coronavirus outbreak slowed the sales of the premium vehicles in India, the luxury vehicles industry is still anticipated to grow at a CAGR of 6% for the period 2020-2025.

Vehicles with luxury features are always a valued purchase for the owners, and anything valuable must be secured against eventualities. It is through a comprehensive Motor Insurance policy that one can enjoy the excellence of luxury vehicles while mitigating the risk of the vehicle getting damaged or losing its value due to unforeseen events.

Why is Luxury Motor Vehicle Important?

A basic Luxury Car Insurance policy tailored around luxury/premium vehicles provides financial assistance for the costs incurred on the maintenance and repair of the vehicle. A Motor Insurance policy can prove beneficial because of the following benefits:

Cashless:

The process, right from buying a motor insurance policy to the claim process is fully cashless*, without the policyholder having to physically take the car for repairs. The insurance broker assists the policyholder in case of any eventuality to establish a cashless claim.

Super Servicing:

The vehicle insurance policy provides a super servicing facility to the policyholder to cover regular servicing charges incurred on the premium vehicle.

Roadside Assistance:

The motor policy provides roadside assistance in case of engine or tyre troubles. You don't just get repair facilities at the scene through mechanics, but also towing service in case a mechanic is not available.

Natural Calamity:

The policyholders are reimbursed in case the premium vehicle is damaged due to unforeseen natural calamities such as earthquakes or flash floods.

What to look for in an ideal Motor Insurance Policy for luxury vehicles?

The contributing factors for an ideal car insurance policy can be many, but there are some that your policy should definitely include. These are:

Add-on facility:

Sometimes motor insurance companies don’t cover specific damages such that of the engine and also exclude depreciation cost which can lower the value of the vehicle. The insurance policy must have the facility of add-ons, where specific covers such as depreciation cover, engine cover, roadside assistance costs etc. can be added over and above the present policy.

Quick Claim Period:

The Motor Insurance broker must provide quick claims and avoid red-tapesto deliver quick payouts. You should ensure that the insurance policy comes with a speedy claim process if the vehicle is used for the daily commute.

Extensive Claims:

The Luxury Motor Insurance policy should include value-added benefits such as accidental claim, theft claim or third party claim. These benefits can allow you to mitigate your level of a financial loss if your vehicle is stolen or you meet with an accident.

No Claim Bonus:

No claim bonus is a unique proposition where the insurer is rewarded for making no insurance claim for a predefined period. A discount anywhere from 20-30% on the premium can be availed by this feature of no claim bonus.