Luxury car insurance - why cheaper isn't always better

When it comes to insuring high-value vehicles, opting for the cheapest policy might prove to be a costly mistake. High net worth motor insurance in the UK is designed for luxury, classic, and high-performance cars, offering a level of protection that standard policies simply can’t match. Here we talk about why choosing the right level of cover is crucial, and why a bespoke policy is often a better choice than the one-size-fits-all approach from an aggregator.

The right level of cover

High value vehicles can carry significant sentimental and financial value, and many standard motor insurance policies do not adequately address the specific insurance needs of a luxury or classic car owner. These policies typically provide basic coverage. However, high-value vehicles often require additional more tailored cover options such as:

• Agreed vehicle value
• Enhanced repair standards using approved parts and specialists
• A like for like courtesy car
• Waiving your policy excess if you have another vehicle and you don’t need a courtesy car.

For example, a high-performance vehicle or a classic car might need special attention from an expert restorer after an accident. A high net worth policy ensures that these needs are covered and you may be free to use a garage of your choice rather than using an insurer approved garage.

The importance of agreed value

One of the most critical aspects of high net worth motor insurance is the option to set an ‘agreed value’. Unlike standard policies which assess a cars worth at the time of a claim (often leading to depreciation deductions), agreed value locks in the cars value upfront. This is particularly important for classic or collectible vehicles, which may appreciate over time, rather than depreciate.

Agreed value ensures that you receive the full, predetermined value of your car in the event of a total loss. Without this owners’ risk receiving a payout far below their vehicle’s true worth, potentially leaving them unable to replace or restore their cherished possession.

Bespoke versus aggregator

Aggregator sites are popular when looking for a cheaper insurance policy, but they rarely provide the bespoke service luxury vehicle owners need. These platforms usually list a selection of standard policies designed to cater for a mass market. While these policies might be fine for everyday cars, they can fall short when it comes to insuring valuable or rare vehicles. Aggregator policies often come with restrictions, limited coverage, and don’t cater for driving abroad, high repair standards, or agreed value.

A bespoke high net worth insurance policy on the other hand is tailored specifically to the vehicle and the owner’s needs. Insurers who specialise in high-value motor insurance take into account factors like limited mileage, special storage conditions, and the rarity of the vehicle. They also provide access to services like personal claims handlers, who understand the vehicle’s specific requirements and can arrange for specialist repairs and replacement parts.

Conclusion

High net worth motor insurance is about more than just covering the basics—it’s about ensuring your prized vehicle receives the protection it deserves. Whilst cheaper policies from aggregators might seem appealing, they often lack the depth and personalisation a high-value car needs. With a bespoke policy, you get an agreed value, tailored cover, and access to specialist services - ensuring your vehicle is fully protected and that you have peace of mind when on the road. After all, when it comes to protecting a cherished possession, cheaper isn’t always better.

How Howden can help

Our specialist motor team understands the markets available and will take the time to understand your individual requirements, ensuring that the policy you select offers the right level of protection for your vehicle. Whether it’s a luxury car, a classic model, or a high-performance vehicle, brokers can offer guidance that ensures your vehicle is fully covered in ways that standard policies on aggregator sites often overlook.

One of the biggest benefits of using a broker is the relationship you build with them. When something goes wrong, you won’t be dealing with a faceless call centre. Instead, your broker serves as a single point of contact throughout the process, offering guidance and support along the way.

To speak to us about your high value vehicle insurance, call 0330 008 9653 or email privateclients@howdeninsurance.co.uk