Every now and then, you may find a fast luxury car speeding on the road. However, just everything else, even this situation is not entirely perfect. As per recent researches, it has come to notice that these ostentatious vehicles might be under-insured.
It has been found that the insurance value of these vehicles and the average cost of selling do not entirely coincide. There are various used sports cars which are being sold above the value insured of the car. This situation puts the drivers at loss.
Wondering why? If your vehicle is not insured sufficiently, and you meet with an accident or your vehicle suffers damage, then you will have to bear the charges out of your pocket.
It may be the case that car dealers may be charging more for some of the car models or the buyers would not be insuring the car sufficiently in order to prevent high premiums.
The lack of harmony in the assumed details amongst the seller and the buyer may lead to a reduction in the market value of the car during the purchase. For instance, you buy a car from Mr. X at 150,000 dirhams today and offer to sell it to Mr. Y tomorrow, Mr. Y may end up assuming that you have come across something adverse about the car and hence want to sell it immediately.
This assumed detail regarding the vehicle may lead to lower insurance value for some of the cars. However, there are various cars that do not experience such issues in the selling value and insured value of the car. Hence, the reason behind the issue can be the under-insurance of these luxury car drivers.
To avoid such issues, let us understand the car insurance needs of a luxurious car in the UAE.
Usually, SUVs and sports cars are the most expensive vehicle categories in terms of insurance plans. The cars in these categories are super powerful and usually high in cost. Hence, in case of an accident, the repair cost could be quite big. Moreover, these vehicles are generally on a higher theft risk.
Generally, cars with higher values have special car insurance online for making sure that in case of any mishap, you are financially protected.
Usually, when it comes to selecting between third-party or comprehensive auto insurance what you should actually do is think whether you require a full package or just need the essentials, making it more economical.
TPL Insurance only covers third-party damage to the vehicle, medical bills, or body repairs of the car. On the other hand, your comprehensive vehicle insurance is a complete package that includes coverage for all the aspects of the accident.
Now, purchasing an insurance plan for your beloved exotic car is more complicated than buying one for a regular car. In a lot of situations, you will come across the advice that you should opt for a comprehensive plan for the vehicles that are expensive and new.
But, this is not something you need to follow religiously, because it is dependent upon the usage of your high-end vehicle. Your way of storing it or your frequency of driving it would indicate the insurance plan you must go for.
For your reference, we have listed some of the things that you should consider while getting your luxurious vehicle insured.
Generally, second-hand vehicles are comparatively more affordable, especially in the Emirates where the depreciation rate is really high. The depreciation value is higher in the case of high-end vehicles.
Suffice to Say!
After reading the above, you might have received an idea of the performance and the insurance of the high-end cars. One thing that you need to make sure about is that you are not under-insured. Being under-insured may cause a hole in your pockets because you will have to bear the expenses on your own. Hence, it becomes important for you to compare car insurance online and select the one that is the most suitable for you.