Luxury Car Insurance

Compare quotes for luxury car insurance side-by-side online today.

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, updated on February 15th, 2024       

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Are you the proud owner of a luxury car in Australia? Safeguarding your high-end vehicle is essential, considering the potential risks it faces on the road and the potential expense associated with getting it repaired. Whether it's a prestige sports car, exotic sedan or classic automobile, it’s important to take the time to look for the right insurance policy for your luxury vehicle and compare your options online.

What qualifies as a luxury car for insurance?

In Australia, the definition of a luxury vehicle for car insurance purposes can vary among providers. However, typically, luxury cars are considered high-end vehicles with specific features, advanced technology and a higher market value. Factors that can contribute to classifying a car as luxury include its price and market value, performance, design, modifications and exclusivity. Some examples of luxury car brands in Australia include Porsche, Jaguar, Lamborghini and Ferrari.

However, ultimately, what constitutes a luxury vehicle often comes down to the owner. Most insurers don’t have specific criteria they follow when it comes to separating luxury cars from other vehicles: they’re typically more interested in the market value of the vehicle than its classification as a ‘luxury’ car. However, it's still important to consult with insurance providers to determine whether they have specialised products for prestige vehicles like yours.

How does luxury car insurance work in Australia?

Luxury car insurance generally functions similarly to standard car insurance policies. In most cases, luxury vehicles can be insured under standard policies provided by various insurance providers. However, there are some specialist insurers who offer policies tailored to the unique needs of luxury or prestige vehicles. These specialised policies may offer additional coverage options and benefits which cater specifically to the requirements of luxury car owners.

Because of the different options available, it’s important to explore a range of insurance offers to help you find the most suitable coverage for your luxury car. 

How much does luxury car insurance cost?

There are many factors which go into calculating the cost of your luxury car insurance policy. This includes the following:

  • Make and model of the luxury car: the specific make and model of the luxury car will affect the insurance premium, as some models may be more expensive to repair or replace than others.
  • Market or agreed value cover: owners of luxury vehicles and those with modifications commonly seek out agreed value cover rather than market value to lock in a higher payout in the event of theft or a write-off. However, because of this greater payout, you’ll likely pay more for agreed value than market value, which bases its payout on the value of your vehicle immediately before it was written off.
  • Owner's driving history and claims record: a clean history without driving offences and a lower number of previous claims will likely result in lower insurance premiums, as it indicates a lower risk of accidents or incidents.
  • Level of coverage and policy options chosen: the extent of coverage and additional policy options will also impact the premium. Comprehensive coverage (which is common for luxury and exotic cars) or additional features may result in higher premiums.
  • Insurance provider and their pricing structure: each insurance provider has its own pricing structure, so premiums will vary depending on their underwriting guidelines and risk assessment.
  • Age of the driver and their driving experience: younger and less experienced drivers generally face higher insurance premiums due to the higher perceived risk associated with their age group.
  • Location where the luxury car is parked and driven: your location plays a role in insurance premiums, as areas with higher rates of accidents, theft or extreme weather may result in higher premiums. Additionally, where the vehicle is parked also makes a difference, with those parked in a garage generally deemed safer than cars parked on the road.
  • Security features and anti-theft measures installed in the vehicle: vehicles equipped with advanced security systems or anti-theft devices may qualify for discounts on insurance premiums, as they reduce the risk of theft or damage.
  • Frequency and purpose of use: the more frequently the car is driven, or if it’s used for business purposes, the higher the insurance premium may be due to increased exposure to potential risks.
  • Additional coverage for modifications or accessories: if your luxury car has aftermarket modifications or expensive accessories, additional coverage for these items may increase the insurance premium to adequately protect their value.

Types of car insurance you can choose from

What can specialist luxury car insurance cover?

Common questions about luxury car insurance

Can I take out insurance for a classic or vintage vehicle in Australia?

There are specialised insurance policies available in Australia designed to cater to the unique needs of classic and vintage vehicles, considering factors such as their age, value and limited usage. Because these cars are often decades old, these policies are generally only available through specialist insurers.

Will I be able to purchase insurance for my luxury car through a broker?

Car insurance brokers may be able to assist you in finding suitable coverage for your luxury car. They have access to multiple insurance providers and can help you find the best possible level of protection for your valuable vehicle from their panel of partners.

However, while you might think this is someone you visit and have ongoing discussions with, brokers have evolved to become 100% online and automatic, so you can conduct this process from the comfort of your home without having to make any phone calls.

How can I save money on my luxury car insurance policy?

There are several ways to save money on your luxury car insurance policy. These include:

  • Increasing your excess
  • Maintaining a strong driving record
  • Avoiding unnecessary claims
  • Looking for offers such as multi-policy or multi-vehicle discounts

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Savvy (ABN 78 660 493 194, ACR 541 339) provides readers with a variety of car insurance policies to compare. Savvy earns a commission from our partnered insurers each time a customer buys a car insurance policy via our website. All purchases are conducted via our partners’ websites. The integrity of our comparison service is unaffected by our partnerships with those businesses and our effort remains to bring further brands that do not already use our comparison service onboard.

Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.