Do you own a rare, luxury, or high-value BMW? If so, you’ll definitely need to get it insured to protect it from the eventualities of life. All cars need to be insured to keep them (and you) safe, but if you own a classic or luxury vehicle, you will need to opt for a specialized insurance plan.
Standard vehicle insurance companies are not equipped to provide the right coverage for your high-class vehicle, which could leave worrisome gaps in your insurance plan.
Once you have a proper understanding of your BMW’s unique insurance needs, you’ll be able to choose the right provider, and the right plan to keep you covered every day.
Your BMW’s Special Insurance Needs
Your luxury or classic BMW’s insurance needs differ to an average vehicle’s. The more valuable your car is, the more it will cost you to have it insured.
With that said, it’s not that simple.
There are some unforeseen insurance needs on the cards that are unique to expensive cars. You should always bear these in mind when choosing your provider.
The make, model and year of your car will largely determine how much your insurance premiums will be, but there are other factors to consider too. If your vehicle’s engine is large and particularly powerful, it may warrant custom coverage.
Sporty cars tend to be considered high risk when it comes to accidents, and you’ll likely foot the bill for this risk. If your insurance company needs to source rare or pricey parts to repair your car, your premiums may increase accordingly too.
Another factor to remember is the risk of vandalism and theft. Expensive and rare cars are obviously at higher risk of theft, and the exact risk will depend on your BMW’s make and value. Most insurance companies work according to theft statistics to determine how risky it is to cover your vehicle. If it’s a high-risk car, you’ll pay higher premiums as a result.
How Your Premiums are Calculated
Your insurer will calculate your BMW’s premiums according to several factors. These factors include:
- Your unique driving and accident history
- Your personal credit score
- Your average driving distance
- Your hometown or city and your zip code
- Your occupation and income
- The security of the space where you park or store your vehicle when not in use
On average, monthly insurance for luxury and classic vehicles costs more than standard vehicles. However, you can offset this price difference in a number of ways.
First, take care to drive cautiously and to keep your driving history in good standing. Even if you have a fast car, any history of accidents and claims can drive up your premiums significantly.
Second, don’t let teenagers drive your BMW. Teens are considered high risk, and even if you list them as secondary drivers on your insurance plan, you might pay more as a result.
Third, ask about low mileage driving plans if you don’t use your luxury car often. Many insurance providers offer special rates for drivers who don’t do much mileage in their vehicles. You can opt for several deductibles to keep your monthly charges low.
Why Standard Insurers Fall Short
Standard car insurers, also known as captive carriers, tend to fall short when covering luxury BMWs. At the end of the day, these companies are only really equipped to cover everyday vehicles, and will not know enough about your car to insure it adequately.
Traditional providers tend to focus their efforts on getting you the lowest insurance premiums possible. This sounds appealing on paper, but if your car is classic or high-end in nature, this isn’t necessarily what you want. Cheap premiums are best suited to older and common car makes and models.
Opting for cheaper insurance can leave you and your vehicle open to problematic gaps in coverage. This could leave you in the lurch during emergencies. Additionally, standard insurance agents may battle to give you the correct information about covering your luxury BMW as they’re not likely to have dealt with such cases in the past.
Better Choices for Luxury BMWs
So, now you know that a captive insurance carrier is not your best bet when it comes to covering your car. We recommend choosing a high net worth carrier instead.
These providers are skilled and trained in insuring high-end vehicles, and have extensive experience in offering specialized, comprehensive insurance plans. Their agents will know exactly what you need to keep your car safe. They’ll base your plan on its unique model and custom features, your driving habits, and other important factors.
If you do ever need to file a claim, these companies will be more adept at handling it without long waiting periods. Net worth carriers deal with expensive BMWs and other cars every day, and know exactly how to handle accidents or unexpected situations with ease. They generally offer appealing benefits that other carriers may not be able to, which ensures that you get the best value for your monthly payments.
Luxury BMW Insurance in a Nutshell
Keeping your greatest asset safe and secure is easy when you know which insurance plan will offer the best coverage. Steer clear of run-of-the-mill insurers who rarely have the right know-how to meet your needs as a high-end car driver.
Protect your BMW by always opting for high net worth carriers, and ask your provider to tailor your plan to your individual vehicle. By asking for a custom plan, you’ll ensure there are no gaps in your coverage that could prove problematic later down the line. You’ll also be dealing with an experienced agent who knows exactly how to cover your vehicle to bring you security and peace of mind, no matter where or how you drive.