Luxury cars make up one of the smallest percentages of private vehicles in Malaysia, but insuring them can be tricky because there are special considerations and additional coverage options that come into play.
Due to the unique characteristics and values associated with high-end vehicles, some key factors must be considered when insuring luxury cars. Here’s a list of the important elements to evaluate in a luxury car’s insurance policy.
Vehicle value
Luxury cars tend to have higher market values than others, making them more expensive to repair or replace. Because of this, it’s crucial to accurately assess the value of your luxury car and obtain coverage that matches its worth.
For example, if your car is worth RM1.5 million, ensure that the sum insured is not less than that to receive adequate compensation in the event of a total loss.
As such, comprehensive insurance is often recommended to cover theft, vandalism, and accidents and make up for the vehicle’s worth in any case.
Specialised insurance providers
Several insurance companies in Malaysia specialise in insuring high-end and luxury vehicles, such as Tokio Marine, Etiqa and Allianz, to name a few.
These providers have a better understanding of the unique needs of luxury car owners and can tailor policies to offer better coverage, which includes agreed value coverage that ensures full value compensation in case of a total loss.
Specialised service providers are recommended so you can customise your policy according to your driving habits.
Say, if you only use your luxury car for special occasions or limited mileage, consider a policy that takes this into account instead of a standard policy. Limited usage or event-specific policies can save money, especially if you don’t drive your luxury car frequently.
Enhanced coverage options
Unlike regular cars, luxury cars typically require additional coverage options like coverage for high-end accessories and modifications, which include exotic materials, custom parts, or special paint finishes.
Thus, it’s important to ensure that your policy covers more than just the basics and extends coverage into specialised parts and accessories.
Regular maintenance
A well-maintained car often has a positive impact on insurance premiums because regular servicing ensures optimal condition and reduces the likelihood of mechanical failures or accidents.
This positively influences insurance premiums, where insurers would consider lowering prices as driving habits and vehicle conditions are taken into account.
On top of this, advanced security and anti-theft measures can also contribute to lower premiums since theft and vandalism are grave concerns for high-end vehicles.
Consult with an expert
Given the unique considerations for luxury cars, it’s highly advisable to consult with an experienced insurance agent or broker who specialises in high-end vehicles to understand more about the process of insuring a priced car.
If you are new to owning a luxury vehicle, experts can help you navigate the complexities of insuring luxury cars in Malaysia and find the best coverage options to suit your specific needs.
Insuring luxury cars
Insuring a luxury car requires careful consideration of the vehicle’s value, coverage options, security measures, and driving habits. Specialized insurance providers can offer tailored solutions to protect your high-end investment effectively.
It’s essential to do your research and work with professionals who understand the intricacies of luxury car insurance to ensure you have the appropriate coverage in place.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Visit Bjak today to get your free insurance quote!
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