How do I insure a prestige car?
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Whether it's a luxury car or a classic, prestige car insurance is of the utmost importance. It's perfectly legitimate to require the best guarantees, when you have a valuable car.
In this article, we suggest you discover all the essential guarantees, to be well protected in the event of a claim. Whether the driver is at fault or not, there are dedicated solutions. You can even make a few savings, if you know a few tricks.
What is a prestige car?
First of all, let's define what a prestige car is. They can be:
- Luxury cars,
- Sport vehicles,
- Collection cars.
It's up to the insurer to assess the value of the vehicle when formulating its car insurance offer.
The car doesn't fit into the boxes of a prestige car, but if it has a particular sentimental value for you, don't hesitate to point this out to the insurer. You may, for example, be able to obtain better coverage in the event of total damage.
How to insure a prestige car?
The legal obligations when it comes to insuring a top-of-the-range car are the same as for any other car. On the other hand, certain coverages can make all the difference, so that you can enjoy good reimbursements in the event of a claim.
Third-party liability: an insufficient level of cover
In Switzerland, all vehicle owners, but also lessees, are required to have at least third-party liability. This covers the insured when they cause damage to third parties. In the event of a claim, the high value associated with a prestige vehicle would seem to call for greater coverage. In fact, when only third-party liability is taken out, no reimbursement is provided for the driver's vehicle when it is responsible for an accident.
Furthermore, this level of cover also does not allow reimbursement, when external elements damage the vehicle. No coverage is provided in the event of bad weather or theft.
Full casco: a minimum for a prestige car
So the minimum for insuring a luxury car seems to be full casco. It includes:
- The partial casco: a level of insurance under which the car is covered against external elements such as theft, fire, glass breakage, collisions with animals or inclement weather.
- The casco collision: which allows the driver to be covered when he himself is responsible for a collision, resulting in material damage to the car or bodily injury to himself.
Insurance can also include parking damage cover, in the event of damage to the vehicle.
Insurance against total damage
One option should particularly attract the attention of owners of a top-of-the-range car. This is total damage cover. As a reminder, this is the case in which the car cannot be repaired, either because repairs are too expensive, or because they are technically impossible.
For owners of a luxury car or even a collector car, it is imperative to have good reimbursements, in the event of a claim resulting in total damage.
When insurance only provides for partial reimbursement of the car's market value, the loss can be significant on this type of vehicle.
Specific cover for classic cars
Some insurers also offer cover aimed directly at classic cars. In this case, the aim is to preserve their value in the event of a claim, by providing for appropriate repairs.
Collectible vehicles generally require hard-to-find and expensive original parts. It's important for owners of this type of car to find an insurer willing to finance repairs.
Furthermore, it may be worth making sure that your car insurance contract allows you to choose your garage yourself. In general, classic car owners know specialist garage owners who are able to carry out repairs on their vehicle in the best possible way.
Assistance and breakdown assistance
Assistance and breakdown assistance are not always included in insurance contracts. For a prestige car, it is absolutely imperative to have this type of service. In particular, it enables the vehicle to be transported to a garage in good condition in the event of a problem.
How much does luxury car insurance cost?
Luxury car insurance in Switzerland is a niche market that most insurance companies have seized upon. It is therefore possible to compete with the various players in the market, to obtain the best cover at the best price.
Calculating the premium for top-of-the-range car insurance
For top-of-the-range car insurance as for a classic car, the insurer uses the same data, to set the price of the premium.
The value of the car must first be assessed. This enables the insurer to assess what it might have to pay in the event of a claim, in terms of repairs for example.
The use of the vehicle also strongly influences the price of insurance. We'll be looking, for example, at where the vehicle is parked, the number of kilometers driven each year, or how often the policyholder uses it.
Finally, the driver's profile will be studied carefully. Has he or she ever had an at-fault accident? What is their age and gender? These are all questions that will help determine the rate.
Why pay more for luxury car insurance?
Most of the time, insurance for luxury cars costs more because:
- The power may be greater,
- Parts are rarer or more expensive,
- The repair costs in the event of material damage are greater,
- The overall value of the vehicle to be insured is higher than that of a lambda vehicle.
In short, the greater thefinancial risk for the insurer, the more this will be reflected in the price of the premium.
How to lower the price of car insurance?
Certain reflexes can nevertheless help lower the price of car insurance. You can, for example:
- Renege on certain coverages such as collision,
- Drive carefully to avoid at-fault claims and a malus,
- Choose European vehicles, for which spare parts are more affordable,
- Compare quotes from several insurers,
- Choose a cheaper car.
Should you use an insurance broker for a luxury car?
It may indeed be a good idea to use an insurance broker, when you want to insure a luxury or classic car. He or she will scrutinize insurers' offers, to discover the best cover. He is also likely to negotiate the best rates.
The car insurance broker is likely to obtain better conditions, than by using a simple insurance comparator. It also spares the various administrative formalities that those looking for car insurance themselves have to deal with.
Leasing or buying a top-of-the-range car: what insurance?
For someone buying a prestige vehicle, the only legal obligation is to take out third-party liability insurance.
When it comes to leasing, most leasing companies impose a higher level of cover. It is generally essential to have comprehensive cover. So if you want to lease a luxury car, you won't be free to choose the level of cover. The lessor may even impose certain options on you, such as assistance or parking damage cover.
Can a luxury car be insured as a young driver?
Insuring a prestige vehicle in the name of a young driver may be difficult, but it's not impossible in Switzerland.
Insuring in the name of the young driver
It's possible to find insurance companies that will take on the car insurance of a luxury car for a young driver. However, you should expect a significant insurance premium, which takes into account the driver's lack of experience on the road.
Insurance in the parents' name
To be able to pay less in the first years of driving, it is possible to insure the car in the parents' name. The driver will then be designated as the vehicle's secondary driver. Beware, with this type of operation, the young driver does not accumulate any bonus, which could enable him to insure his car at a more attractive rate.
The best insurance for a luxury car in Switzerland
To help you find the best luxury car insurance in Switzerland, we have analyzed the offers of several insurers.
Generali: a recognized insurer for prestige car insurance
First and foremost, Generali is one of the most prominent insurers when it comes to insuring a prestige vehicle. Indeed, the company offers very comprehensive cover, with reasonable deductibles.
As far as administrative markets are concerned, Generali scores points with the ability to underwrite online. Customers seem generally satisfied with the support offered by this company.
Axa's formulas for high-end cars
AXA also offers car insurance formulas ideal for luxury car insurance. However, deductibles can be high, particularly in the event of a collision that is the insured's fault.
The options on offer can be very comprehensive, with bonus protection, parking damage or even insurance for items taken along.
The insurer has its own garage network, in the event of repairs. However, you are free to choose your own garage, subject to a surcharge.
Bâloise: a young driver's insurer for luxury cars
Bâloise is also one of the insurers where it makes sense to get a quote for insuring a luxury car. You'll be able to count on all the coverages expected for this type of vehicle, with very comprehensive formulas.
Rates present excellent value for money. However, there are high deductibles for third-party liability and collision.
Elvia and its partner garages
Elvia is an Allianz Group insurance company. This means top-quality cover, with the option of all the options needed to insure a luxury car.
The advantage of this company is that it offers attractive rates. On the other hand, deductibles are high in the event of an at-fault claim.
Partial casco offers excellent protection, without the need to pay a deductible.
The TCS insurance packages
Finally, we couldn't write this article without mentioning the packages offered by the TCS insurance company. TCS offers car insurance for luxury vehicles.
TCS is particularly suitable for young drivers. It offers advanced driving courses, which will give them more confidence on the road. Those who take them may also benefit from a better rate on their car insurance premium.
Updated on: 30.01.2024Written by Antoine LégerHead of non-life insurance department at Comparea.To learn more about our team click here.