If you own a luxury car, you may already be paying a few thousand dollars each year for insurance. Luxury cars are inarguably the most expensive kinds of cars to insure. Insurance companies hike up the prices for high-end car owners and often try to sell them optional, supplemental types of insurance, some of which are unnecessary. Having the best (and most expensive) insurance for your luxury car oftentimes makes sense. If you get in an accident in your Ferrari, it’s going to cost a lot more to repair it than it would cost to repair a Toyota.
Once you invest in the types of auto insurance you’re legally required to have, you may be wondering which types of supplemental insurance you should invest in as well. There’s no need to invest in all the different types of optional auto insurance out there, but there are certain types you may want to look into to make sure you’re adequately protected in the event of an accident. Here are three types of optional insurance you may want to consider:
1. Comprehensive Insurance
This type of optional insurance will cover the costs to repair or replace your car if it gets stolen or damaged in the event of a natural disaster or vandalism. Basically, if your car gets damaged in any other way other than in an accident, you’re going to want to have this kind of insurance. If you live in an area that’s prone to flooding and hit hard by hurricane season every year, investing in comprehensive insurance is an especially good idea.
2. Gap Insurance
Unless you paid cash for your luxury car, gap insurance can definitely be a worthwhile investment. This kind of insurance will pay off your car if it gets totaled in an accident. If your car gets totaled, the insurance company will financially compensate you for what they think your car is worth. If your car is relatively new, you may still owe several payments on it. And, unfortunately, what the insurance company estimates your car is worth may not cover all the payments you owe. In this sort of situation, gap insurance will pay off your car for you.
3. Uninsured Motorist Insurance
Hit and runs happen a lot more often than you might think, and quite a few people drive around on the road without insurance. If your car gets hit by a driver without insurance or by a driver who leaves the scene of the accident, uninsured motorist insurance will pay for the associated repair costs, so you don’t get stuck having to foot the bill.
While you don’t necessary need to pay for all the different kinds of auto insurance on the market, it may be a good idea to look into the types of supplemental insurance listed above. Protecting your luxury car is important!
_________________________________________Rebecca Morris is a guest blogger and freelance writer who contributes to various sites about cars and curates content for carinsurance.org. When Rebecca’s not writing, she’s researching car insurance trends and green technology. Please leave your questions and comments for Rebecca below!