March 19, 2021
Are you looking to buy a luxury car that costs no more than R500 000 in South Africa? Having car insurance should not be negotiable, especially in South Africa where only about 30% of all motorists have cover. Let’s find out more about luxury cars and the best type of car insurance for them.
This article should only be considered for information purposes only as car insurance is not straightforward. Please obtain professional advice from a certified financial advisor if you want to purchase car insurance.
We often hear or read about ‘luxury’ cars, but do we know what they are? Luxury cars are available from almost any vehicle brand. If a car is considered a luxury car, it must be equipped with features above the usual car requirements. These cars will perform better, have splendid and opulent interiors, and boast the latest in car safety and technology.
Well-known brands that manufacture luxury cars are Mercedes-Benz, BMW, and Audi, etc. However, the more common brands like Toyota and Honda are also included in this category nowadays. Motorists can find luxury cars in all types, such as crossovers, SUVs, hatchbacks, and sedans. The cost of a luxury vehicle does not seem to matter. Just because a car manufacturer considers a car to be a luxury one does not necessarily mean that all drivers support this.
There is no clear definition of what a luxury vehicle is, and it depends largely on individual opinion. But some features are categorised as ‘luxury’: such as: water-resistant windows, integrated seat massagers, a heated steering wheel and automatic safety features. A luxury car might have water-sensitive windscreen wipers and feature-laden entertainment systems.
Firstly, if a luxury car or any vehicle is to be financed through a financial institution such as a bank, comprehensive car insurance is required.3 If a luxury car was bought with cash, it would still be advisable to protect it with comprehensive car insurance. This is because the cost of repairs of luxury cars is high, besides protecting what you have paid for. Comprehensive car insurance is the most encompassing of all other car insurance policies. You can't buy something that is better than comprehensive car insurance.
With PMD’s comprehensive car insurance, the excess reduces to zero, and premiums are fixed.* This car insurance policy provides cover for the full retail value of your car if lost through write-off and accident, disaster, natural fire, theft, and hijacking. If your car breaks down or has an accident somewhere, 24-hour roadside assistance and towing services are provided. Your car is covered for hail damage that has been professionally assessed. Cover is also provided if your car’s glass is accidentally damaged or needs to be replaced. Car hire is an optional extra, which you may require for transport if your vehicle has been in an incident. T’s and C’s apply.
Enjoy buying and driving off with your new luxury car should you decide to buy one. Why not consider contacting PMD for an affordable, comprehensive car insurance quote to protect your new vehicle?