Prestige car insurance provides specialty insurance for luxury and high-performance cars. It covers such renowned brands as Porsche, Aston Martin, Bentley, Mercedes Benz and Rolls Royce among others, according to the Alan and Thomas Insurance Group.Continue Reading
In 2014, 12 brands of luxury cars, Acura, Audi, BMW, Cadillac, Infiniti, Jaguar, Land Rover, Lexus, Lincoln, Mercedes-Benz, Porsche and Volvo, made up 11 percent of the total number of new car sales in the United States, according to an Edmunds report. These high-priced, high-performance vehicles are referred to in the automobile industry as "prestige" vehicles and require specialized insurance.
Prestige car insurance is specifically designed to meet the needs of drivers of high-end cars, according to Edmunds. The coverage commonly includes a loaner car of equal value if the insured car is damaged or stolen, higher coverage for damages than with traditional insurance and the ability to choose a specific repair company to service the car in the event of an accident, offers the Alan and Thomas Group.
Because of the risk of high repair or replacement costs on vehicles that often have rare parts or unusual materials, many regular insurance agencies do not offer prestige coverage, reports Forbes. Drivers of high-performance and luxury vehicles must consider the cost of prestige insurance with the price of their car.Learn more about Vehicle Insurance