Here are few add-ons which one should know about before getting insurance for their luxury car:
Until recently, car owners could not get complete cover for their cars. Insurance companies took depreciation of the car into the account which at times would reach up to 40% or more depending on the age of the car.
However, in 2009, general insurance companies selling car insurance introduced this add-on cover which includes ‘depreciation reimbursement'. It offers full claim without deduction for depreciation on the value of parts replaced. In addition to this, cover extends to the repairing costs of fibre, glass, etc.
Tata AIG is the first one to launch a zero depreciation add-on cover. The premium is slightly higher than the other car insurance policy.
Other companies which offer this add-on are Bajaj Allianz General Insurance, Royal Sundaram, Chola MS, etc.
In luxury cars, the owners should get insurance as the cost of repair or replacement of engine can burn a hole in their pocket as it very costly, mainly 30-40% of the cost of car. Luxury cars are very prone to get damaged by the water ingress so in this case getting an engine cover policy can be very beneficial. Insurance company like Bajaj Allianz provides cover for any damages caused to the engines.
Special service like private towing service for the luxury car to the authorized service centre is also provided as a part of the car insurance policy. As these kind of car can't be repaired or serviced by the roadside garages so the tow service is provided by the insurer. Bajaj Allianz is one of the insurance companies which provide roadside assistance.