Knowledge Centre

Insurance for Luxurious Cars

India has one of the fastest growing automobile sectors in the world. And the number of luxury cars on Indian roads issoaring at a consistent rate. Thanks to increasing disposable income, consumerism, and easily available car loans, more and more people are now splurging on luxury cars.

If you are the owner of a premium-segment or luxury car, a basiccar insurance policy will not suffice. A luxury car is very different from standard cars in terms of price, performance and maintenance cost.

A small repair in a luxury car can cost you significantly higher than a regular car. And in case the car is involved in any sort of accident, the repair cost can be even higher. This is especially true because luxury car owners cannot take the risk of substandard car service or unbranded spare parts and standard car insurance of Rs 3 lakh to 5 lakh will not cover the damages. This is why the insurance that covers luxury cars should be different and designed to protect your valuable assets.

With the increasing number of luxury cars on Indian roads, many insurance companies have jumped the bandwagon to provide a customised insurance policy for luxury cars. Similar to standard car insurance, even luxury car insurance is divided into

  • Third Party Insurance

  • Comprehensive cover Insurance

A third party car insurance will provide cover for third party damage in case of an accident. It is the mandatory car insurance that every car owner in India needs to buy. It is important to note that this insurance will not cover the repair cost of your vehicle.

In order to get coverage for the repair of your luxury car, you need to buy comprehensive car insurance.Itis only logicalto buy full coverage for luxury cars because the cost for repair and even regular servicing for luxury cars can be quite high as already mentioned above. When buying luxury car insurance, make sure the maximum sum insured (IDV) is in accordance with the market value of the car. Some insurance companies also offer free car service in addition to repair costs for luxury cars. As per a report, the average claim made by a luxury car insurer is Rs 50, 000, which may not seem toohigh but is stillsignificant.

In addition to buying comprehensive car insurance, it also makes sense to buy add-ons for your cars. Add-ons like depreciation cover, engine cover, roadside assistance, etc go a long way in making your car insurance more valuable and worthy. A little additional expenditureon add-ons can pay for expensive spare parts and rapidly depreciating costs related to your luxury vehicle. However, before buying any insurance policy make sure you read all the terms and conditions carefully.


Luxury cars are expensive to buy and are also high onmaintainenance.  An insurance cover canhelp you deal with these expensive repairs and other related costs. Experts say that to provide the best coverage for your luxury vehicle, you must buy a comprehensive car insurance policy along with selected add-ons.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumarrecommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle

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