This information is very helpful for people that purchase an expensive luxury car. Many peoples dream of buying a luxury car and for those who own a luxury car, if there is any damage to their expensive car then, to repair you will need a lot of money. It costs a lot to repair a luxury car compared to the normal car. 

As such, the cost of repairs/spare parts can be very high at times. Hence, it is important that one does a thorough research on the basic policy features as well as the add-ons while choosing a motor insurance policy. A comprehensive cover with value-added features, therefore, is often recommended by experts. Over the last couple of years, car insurance covers have become highly comprehensive, offering a range of add-ons that are crucial, especially for a luxury car.

While ignoring comprehensive insurance would be a mistake, resisting the urge to splurge on all heavily-promoted add-ons is advisable. To strike the right balance, you need to do your own homework.

Depreciation Reimbursement

It is a must for every luxury car, according to insurers. Depreciation reimbursement cover offers to settle the full claim without any deduction for depreciation on the value of parts replaced.

"Depreciation reimbursement and consumable cover are crucial, as the cost of replacement of parts more prone/exposed to damage is very high and, hence, a higher amount of depreciation is to be borne by the insured in case of a claim," says Ramesh Ramani, senior vice-president, Tata-AIG General Insurance.

Availing this add-on would be of help particularly when you need to replace high-cost parts of your luxury cars.

Engine Cover

Then, there is the cost of repairing the damage to the engine, particularly due to flooding. "Such vehicles are also prone to damage due to water ingress and the cost of repair/replacement of engine is to the tune of 30-40% of the cost of the vehicle. Hence, engine cover must be taken by the owners of luxury cars," says Ramani.

Roadside Assistance

Typically, roadside garages are not capable of handling repair works for luxury cars. The servicing of such vehicles calls for a certain skill set, which is available only with the company-authorized service centers, say insurers.

Private towing services are also available for car owners who don’t opt for roadside assistance service as part of the car insurance policy. However, these agencies may manhandle the car, which could lead to further damage even before it reaches the service center.