Porsche Auto Insurance for Your Luxury Car

You?ve finally bought the car of your dreams. Whether it is a classic Porsche or a brand new one, it is vital that you protect your luxury car with the proper amount of insurance.

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Just because a Porsche is an expensive high-end car, it does not mean that the insurance must cost a fortune. There are ways to save money even on the Porsche, but it?s even more important that you have enough insurance on your car.

Liability

You probably know that you have to carry liability insurance on any vehicle you own in order to drive legally. This is particularly important when you own an expensive luxury car.

If you own a Porsche and cause an accident with another car, in our society there?s a good chance that you?ll be sued. Having a car like that, even if you inherited it secondhand, will often make the other driver think you have money, increasing the likelihood of a lawsuit.

Unfortunately, many people only buy the minimum amount required by their state. In most states, this is a fairly low amount. For example, if you live in New York? you are only required to have 25/50/10 insurance.

The first number represents the amount of money in thousands of dollars that the company will pay towards the medical bills for anyone in the car you hit per person. The second number is the maximum per accident it will pay for bodily injury.

So if you cause an accident with a minivan carrying a family, critically injuring some of them, the most your insurance would pay is $50,000. A few days in ICU for two people with a couple of surgeries could eat through that amount very quickly.

In addition, $10,000 in property liability, the third number means that even if you hit another luxury car worth tens of thousands of dollars, your insurance will only pay $10,000.

Because of the fiscal responsibility laws in each state, you?ll be required to pay anything above?the amount your insurance covers.

This will probably result in a lawsuit, making you vulnerable to losing your savings, your home, and probably your Porsche being sold to pay for the damages from the accident.

This is why many experts suggest that everyone carry at the very minimum 100/300/50 liability insurance. However, your personal situation might require even higher levels.

Umbrella Liability

A great and inexpensive way to protect yourself and your assets from such a scenario is to buy an umbrella liability policy. An umbrella liability policy acts as a secondary level of coverage which kicks in after you?ve reached the limits of your auto liability.

Umbrella insurance is fairly inexpensive since the chances of your needing it are much lower than the chances you?ll use your auto insurance liability. It?s sold in multiples of a million. The first million is usually about $200 a year. Each million after that gets more expensive.

Umbrella insurance actually covers both your home and your auto insurance, acting as back up insurance for both. Because of this, many companies won?t sell you an umbrella policy unless you have both homeowner?s and auto policies with them. This policy also kicks in is other circumstances, like if you are sued for libel or slander.

Don?t think you need an umbrella policy?

According to the New York Times, nearly everyone with any kind of assets needs one, since lawsuits can not only wipeout what you have now, but can garner wages from your future earnings as well.

Comp and Collision

Comprehensive and collision are important parts of an auto insurance policy, especially for luxury and high end cars like Porsche. Though it?s perfectly legal to drive without them, having them is a smart way to protect your expensive car.

Collision pays for your Porsche to be repaired after an accident that is your fault. Obviously, the other person?s liability insurance pays for it if it?s his fault. Comprehensive pays for those repairs from events not related to traffic accidents. It will replace the car if it is stolen and pay for any hail damage repairs, for example.

The premiums for comp and collision are based on the value of the car, so they can easily be the most expensive part of your auto insurance policy on an expensive car like a Porsche. However, the alternative is to have to pay for all the repairs, or to have to by a new one, completely out of pocket. If you?re still paying car payments on it, you?ll have to do this while still paying off the loan.

There are a couple of things to keep in mind about comp and collision. First, if you have an outstanding car loan, you?ll be required by the lender to buy comp and collision. If you don?t, they have the right to confiscate the car and sell it.

Second, before buying the policy, read the fine print carefully.

Mainly you are looking to see if the policy requires the insurance to pay for OEM parts for repairs or if it allows cheaper, aftermarket parts.

With high-end cars like a Porsche, you don?t want the repair shop using cheap parts because that?s all the insurance will pay for.

Uninsured Motorist

Some states require drivers to have coverage in case of an accident with an uninsured motorist. As the owner of a car like a Porsche, it?s really in your best interest to have it. While the other driver is supposed to pay for your damages if he is at fault, the fact is that it is very hard to get any money from most uninsured motorists.

Uninsured drivers are a real problem?in many areas of the country. California estimates that about 14% of all drivers?on its roads are uninsured. If one of these drivers was to hit you, you could file the claim through your collision insurance, but that would result in a healthy hike in your premiums.

With all expensive cars, underinsurance is also a large problem. In California, drivers are only required to buy $5,000 of property liability. If a driver with this amount causes an accident with your Porsche, it?s obvious that this won?t be enough to replace your car if it is totaled. This is why uninsured/underinsured motorist coverage is a vital component of Porsche auto insurance.

Classic Porsche

If you have a classic Porsche, you might need to consider classic car, or sometimes called collector car insurance. If your Porsche is not your everyday car, but is something you only drive on occasion, you could save a lot of money on your Porsche auto insurance.

Classic car insurance is specifically designed for older cars that are investments or collector?s items rather than everyday transportation. It?s quite a bit cheaper, sometimes as little as $200 or $300 a year. It?s also designed to fully reimburse you if something were to happen to the car.

Traditional car insurance uses actual cash value of your car to determine how much it will pay you if your car is totaled. However, most cars depreciate each year, so this number decreases as the car ages.

Classic or collector cars often appreciate in value. Classic car coverage uses agreed value. Usually you?ll have to submit pictures of the vehicle so the company can see the condition of the car. It?s also helpful to have an independent appraiser to submit a value. Once you and the company agree upon what the car is worth, the policy is written for that value.

Classic car insurance also allows you to structure the policy so that you can choose the types of parts that go into a car repair. This is particularly important for Porsche owners who usually want authentic Porsche parts on the car.

Keeping Premiums Down

Insurance on a Porsche will probably never be as inexpensive as insurance for the typical family sedan, but there are still many ways to keep the premium down. One of the easiest ways to save is to buy your car insurance from the same company as you get your homeowner?s insurance.

Companies love it when customers buy multiple policies?from them, so they reward you by offering discounts for them. Not only will this give you a great discount on the auto insurance, but you?ll save on insurance for your home as well.

It also pays to shop around. Insurance companies have different ways of computing costs.

You can often find a difference of several hundred dollars for the same level of coverage from two different companies.

Be sure to get a quote for the homeowner?s policy at the same time to maximize your savings.

Don?t be shy about asking for discounts. The Insurance Information Institute lists 13 different common discounts you might qualify for, like having good credit, not having an accident in the last five years, or having more than one car on the policy. Ask the agent to go over the ones they offer with you so that you can get credit for as many as possible.

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Source: http://www.autoinsurance.org/porsche-auto-insurance-for-your-luxury-car/

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