High-value Car Insurance vs Regular Car Insurance: Which Is Better?
With the increasing premiums of car insurance in Singapore, is it time to reconsider the type of car insurance plan that you're planning to get or already have? While most plans fall in the regular car insurance category, some high-value car insurance are designed to protect high-value vehicles, such as luxury cars, sports cars, and classic cars. It typically offers higher coverage limits and more specialised features than regular car insurance, but is it better for you and your ride? Let’s find out.
What Does High Value Means?
The term "high value" is not an official one and there's no official definition for what constitutes a high value vehicle. It generally refers to luxury cars or sports cars such as Ferraris, Lamborghinis and Aston Martins among others. However, this does not mean that all luxury cars fall under this category; some cars with relatively low prices such as BMWs also qualify as high value vehicles due to their popularity among thieves who would rather steal them than other more common models.
Key Differences Between High-value and Regular Car Insurance
| High-value car insurance | Regular car insurance | |
|---|---|---|
| Coverage |
|
|
| Cost | More expensive than regular car insurance | Less expensive than high-value car insurance |
| Suitable for | Cars that are worth more than a certain amount | Cars that are worth less than a certain amount |
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Factors To Consider When Picking High-Value Or Regular Car Insurance
Here are some additional factors to consider when choosing between high-value car insurance and regular car insurance:
The value of your car
If your car is worth more than the average car, then you should consider high-value car insurance. High-value car insurance policies typically have higher coverage limits, so you can be confident that your car will be fully replaced if it is damaged or stolen.
Your budget
High-value car insurance is typically more expensive than regular car insurance. However, it is important to remember that you are getting more coverage for your money.
Your driving habits
If you have a good driving record, then you may be able to qualify for a discount on your high-value car insurance policy. However, if you have a history of accidents or traffic violations, then you may pay a higher premium.
The type of coverage you need
High-value car insurance policies often offer specialized features, such as agreed value coverage and replacement cost coverage. If you need these specialized features, then you should consider high-value car insurance, and if you’re really unsure of how to go about doing it, you can tap on our resources on our Car Insurance Guide here.
Your lifestyle
If you live in an area with a high crime rate, or if you park your car in public places frequently, then you may want to consider high-value car insurance.
Your job
If you have a job that requires you to drive your car frequently, or if you use your car for business purposes, then you may want to consider high-value car insurance.
Do I Really Need High-value Car Insurance?
The reasons why you may need high-value car insurance are quite simple. It could be that:
Your car is worth more than the average car
High-value car insurance can help you protect your investment if your car is damaged or stolen.
You want the highest possible coverage limits
Regular car insurance policies may have coverage limits that are too low to fully replace your car if it is totaled. High-value car insurance policies typically have higher coverage limits, so you can be confident that your car will be fully replaced if it is damaged or stolen.
You want specialised features
High-value car insurance policies often offer specialized features, such as agreed value coverage and replacement cost coverage. Agreed value coverage simply means that your insurance company will pay you the agreed-upon value of your car in the event of a total loss, regardless of its current market value. As for replacement cost coverage, it just means that your insurance company will pay you the cost of replacing your car with a new car of the same make and model, regardless of its depreciation.
Frequently Asked Questions
Does high-value car insurance have greater coverage?
- Yes. High-value car insurance is designed to protect high-value vehicles, such as luxury cars, sports cars, and classic cars, and it usually covers the car's market value, as well as personal accident and medical expenses, while regular car insurance covers only the car's third-party liability unless you purchase any add-on options to it.
What is the difference between agreed value coverage and replacement cost coverage?
- Agreed value coverage simply means that your insurance company will pay you the agreed-upon value of your car in the event of a total loss, regardless of its current market value, while replacement cost coverage means that your insurance company will pay you the cost of replacing your car with a new car of the same make and model, regardless of its depreciation.