Insurance for Luxury Cars in Ontario
Luxury cars and high-value cars in Ontario need specialized car insurance compared to coverage for a basic car. Ontario is recognized as one of Canada's leading markets for luxury vehicles. When you get luxury car insurance, it needs to be customized to protect your high-end vehicle.
Insurance for exotic cars costs more because these high-value luxury cars need more coverage to protect them, but with a little homework you should be able to save on your Ontario luxury car insurance.
Western Financial Group, a 100% Canadian company, can help you navigate your car, home, boat, and business insurance during this period of economic uncertainty.
What is a luxury car?
A high-value car is usually defined by:
- Prestigious brand or model reputation
- Superior comfort and high-end materials
- Advanced technology and safety features
- Higher cost
- Higher horsepower and smooth performance
- Higher speeds
- Distinct design
What are the major luxury car brands in Ontario?
The most prominent luxury car brands in Ontario include:
- Mercedes-Benz (notably the S-Class, E-Class, and GLS SUVs)
- BMW (including the 3 Series, 5 Series, 7 Series, X1, X3, and i-series)
- Audi (A3, A6, A8, S8, and Q-series SUVs)
- Lexus (LS, NX, RX, and GX SUVs)
- Acura (Integra, MDX)
- Genesis (G90 sedan, GV70 and GV80 SUVs)
- Porsche (911, Cayenne, Macan)
- Cadillac (Escalade, CT4-V, CT5-V)
- Land Rover/Range Rover (Range Rover SUVs)
- Volvo (XC90 and other SUVs)
- Lincoln (Corsair, Nautilus)
- Maserati (Quattroporte)
What is Ontario luxury car insurance?
Luxury car insurance is a specialized type of car insurance that provides coverage for the unique risks and higher prices that come with owning an exotic vehicle in Ontario. It’s different from standard car insurance because it offers increased protection, higher coverage limits, and customized options to safeguard the high value of these vehicles.
How can I save on exotic car insurance in Ontario?
Car insurance for a luxury vehicle is going to cost you more, but you can save on your policy.
Here’s how you can save money on your luxury vehicle auto insurance in Ontario:
- Pay your policy in full rather than monthly payments
- Increase your deductibles
- Shop around for multiple insurance quotes for your high-end car
- Keep customization of your luxury vehicle to a minimum
- Keep your yearly mileage low
- Keep your driving record clean
- Add vehicle safety features
- Add vehicle anti-theft devices (real-time tracking device) because thieves target high-value cars
Let Western Financial Group protect and personalize insurance for your Ontario luxury car. Western is an insurance broker that can help you find quotes from insurance companies that offer specialized coverage for exotic and luxury cars. We can help you save on insurance for your high-value vehicle in Ontario.
What are some specifics of luxury car insurance coverage?
Ontario luxury car insurance typically can have the following policy options available:
- Higher policy limits
- Agreed upon settlement value if the car is a write-off
- Repairs with original equipment manufacturer parts
- Mechanic and body shop preference for repairs
- More extensive loss of use and rental car coverages
- A limited waiver of depreciation to make sure the luxury car is replaced with a current make/model.
- Limit the number of drivers on your luxury car insurance policy
Why are higher limits needed to protect your luxury car in Ontario?
Third-party liability coverage covers bodily injury and property damage to others if you are at fault in an accident. It’s mandatory in Canada, but higher coverage limits are strongly recommended for luxury vehicles in Ontario due to their value. Insurance providers recommend carrying at least $1 million, and often $2 million or more, in liability coverage, especially for luxury vehicles.
Higher limits are also recommended for comprehensive insurance, tailored to the needs and value of an exotic car.
Comprehensive coverage typically includes:
- Theft
- Vandalism
- Fire
- Weather events
- Falling objects like branches or trees.
- Animal damage
Higher limits are also common for collision insurance for high-value vehicles in Ontario because they have more expensive repair costs due to specialized parts and technology.
Comprehensive and collision coverage are not legally required for luxury cars in Ontario. Note that if you are leasing or financing your luxury vehicle, the lender or leasing company will likely require you to have both comprehensive and collision coverage until your luxury car is fully paid off.
Higher limits for accident benefits coverage are often recommended for luxury vehicles due to their higher value and the potential for higher repair costs and medical expenses associated with accidents involving them.
Direct Compensation for Property Damage (DCPD) coverage is optional in Ontario. DCPD is generally recommended for luxury vehicles because it simplifies the claims process and can be more cost-effective than relying solely on collision coverage for repairs when the driver is not at fault. It doesn't cover damages when a driver is at fault, but it streamlines the process for non-fault accidents by allowing the policyholder to deal with their own insurer.
Note that some luxury car insurance policies offer agreed value coverage, which means the insurer and owner agree on the car’s value, ensuring full compensation without depreciation deductions in case of a total loss.
How much does luxury car insurance cost in Ontario?
Luxury car insurance in Ontario is significantly more expensive than basic car insurance. The average annual car insurance premium in Ontario is around $1,686 to $1,920 for typical vehicles and luxury and exotic vehicles have even higher rates.
For example, insuring a Maserati Quattroporte in Ontario can cost approximately $5,223 yearly, while premiums for other luxury models such as the Mercedes S550 Convertible average $4,715 annually. Even among less expensive high-value brands, annual insurance costs typically range from about $2,300 (Acura) to over $4,500 (BMW).
Can a luxury car hold its value?
Some luxury cars lose as much as 50% of their original value within the first five years. Brands like Lexus, Audi, and Bentley tend to retain more of their value compared to other luxury brands with solid resale values.
Factors like the rising cost of parts and specialized maintenance can contribute to higher depreciation, especially as high-value vehicles age and warranty coverage expires.
Final thoughts
When you buy a luxury car in Ontario, you’ll need to protect it with tailored insurance. You can expect to pay more for car insurance and have higher policy limits, but by doing your homework you can expect to find insurance savings for your luxury car in Ontario.
5 FAQs
Which luxury car models are most frequently stolen in Ontario?
The Lexus RX Series, Land Rover Range Rover, Acura RDX, Jeep Grand Cherokee, and the Cadillac Escalade were among frequently stolen luxury car models in Ontario.
Why is insurance for luxury cars in Ontario more expensive than for standard vehicles?
Luxury vehicles have a higher market value and the potential payout for the insurer in the event of a total loss is significantly higher. These cars also have expensive parts, advanced technology, and an increased risk of theft.
What role do repair costs play in higher Ontario insurance rates for luxury vehicles?
Luxury cars often require exclusive or specialized parts that are not always readily available, making repairs more costly and time-consuming. Repairs on luxury vehicles can require technicians with specialized training and tools, which raises labor costs compared to standard vehicles.
Is it possible to save on Ontario luxury car insurance?
Yes, shop around and compare insurance quotes with the help of an insurance broker. Increase your deductible, install an anti-theft device, keep a clean driving record, limit your yearly mileage, bundle your car insurance with your home insurance, and review and adjust your coverage yearly for your Ontario luxury car.
What features make certain luxury cars more attractive to thieves in Ontario?
Brand status, high resale value, demand for parts, advanced technology, and popularity make some high-value cars more attractive to Ontario thieves.
