For many expats, Dubai offers a perfect opportunity to buy a luxury car they can only dream of owning back home. It is because the use of luxury cars is more common in Dubai than in most parts of the world, which makes them easily available. It is kind of local culture here to drive luxurious cars, encouraging expats to buy one for themselves.
When all new cars that are available for AED 300,000 and more are categorised as luxury cars, retail cost is not the only factor you have to look into. You also have to consider how much you have to pay for luxury car insurance, which is often a hefty amount if you are buying a premium car insurance policy for a high-end vehicle.”
Here are some tips for car owners who are looking for high end car insurance for their luxury cars.
Which is Cheaper to insure? A New or Used Luxury Car
As soon as you buy a new luxury car and it leaves the showroom, it loses up to 30% of its value. This is why used cars are cheaper to insure if compared to new cars. One smart option for buyers is to buy a used car that is 2-3 years old, which can significantly reduce your expensive car insurance premiums.
These cars allow buyers to save on their premium even when they are still eligible for agency repairs. The rate of depreciation for new luxury cars is also faster, so buying a used luxury car is often a smart financial move when considering high-value car insurance costs.
Does the Type of Luxury Car Affect Insurance Costs?
Yes, there is a significant difference in cost of insurance premiums based on the type of car. If you own a sports car also known as HPVs (high-performance vehicles), the sports car insurance is expensive if compared to HVV brands (high-value vehicles). For example, if you own a supercar insurance requiring vehicle like Ferrari, you have to pay more insurance premium than if you own a car from Bentley or Rolls Royce. The difference can be up to 40% on the premium.
When looking for high value motor insurance for vintage or older luxury models, it’s important to note that vintage car insurance and classic car insurance Dubai policies may have different requirements and pricing structures compared to standard premium car insurance plans for newer vehicles.
Background Check Can Significantly Reduce the Insurance Cost on Used Luxury Cars
If you are buying a used car, check if the warranty is still valid which mostly lasts for three years or 100,000 km but also varies based on manufacturer.
Also look for service history as many manufacturers void the warranty if prescribed service schedule is not followed. Similarly, check GCC specs as these cars are cheaper to insure. You can learn about the details on RTA passing certificate.
Last but not the least, make sure to opt for comprehensive coverage instead of third party liability. With these tips in mind while buying a luxury car and finding an insurance plan, you can not only save on luxury car insurance but can also ensure the best value for your money, which often comes with comprehensive coverage only.
1. What is luxury car insurance in Dubai?
2. How much does sports car insurance cost in Dubai?
3. Is it cheaper to insure a used luxury car?
4. What factors affect expensive car insurance rates?
5. Do I need different coverage for classic cars?
