What you need to know to insure a luxury car

Whether collector’s item or considered top-of-the-range, a prestige car cannot be insured like a classic vehicle. As many general insurance companies refuse to cover them, it is sometimes mandatory to call on specialized insurers. Explanation with Pierre Sudreau, Managing Director of TEA CEREDE, leader in the insurance of prestige vehicles.

Why CEREDE TEA considered a pioneer in luxury car insurance?

A car is considered to be luxury when its new purchase price exceeds 50k € excluding options. Also, when it is not bought new, its value on the second-hand market must not be less than €20,000. Regarding the second-hand market, these are vehicles that trade between 20k and 300K euros.

TEA CEREDE has been insuring collector vehicles since 1960 and prestige cars for 15 years. We therefore have considerable experience in this market and, as pioneers, we have real know-how. We design ourselves, with the major insurance companies, contracts adapted to the specificities imposed by luxury cars.

Why is it recommended to call on specialists when you want to insure a prestigious vehicle?

The question goes further, because even if you want to insure your prestige vehicle with a traditional insurer, sometimes this is impossible. The price of these cars being higher than the average, general insurance companies are unable to offer suitable offers.

Indeed, with top-of-the-range cars, the risks are different: difficulties of intervention with conventional tow trucks (some brands such as Lamborghinis are very low), risks of greater and more violent theft (car jacking), spare parts more expensive, etc.

How does TEA CEREDE adapt to these constraints?

As a leader in this market and a specialist in prestige cars, we have a network of experts capable of very quickly evaluating the price of the parts to be changed. For example, on a prestigious car, changing the windshield also involves changing high-tech parts such as radars or cameras; on some cars the complete windscreen unit can cost up to ten thousand euros. This is a cost that must be assessed as soon as the contract is drawn up.

Apart from the material aspect, there is also the power of the engine which can put off conventional insurers. To overcome this problem, we provide experienced customers with at least 28 years and 4 years of license.

With more than 400,000 collectors in France and a fleet of one million vehicles, the second-hand market represents an important part of prestige cars. How do you insure these vehicles, the price of which may vary over time?

Calling on specialized insurance is all the more important for classic cars, because the price of this type of vehicle changes regularly; and, unlike a classic car, a used model will sell for more than its original price. It is therefore necessary to have insurance capable of taking this nuance into account so that the vehicle is insured at its true value and not according to its purchase price.

With us, a car with more than 10 years of seniority and which is considered to have an interest in being kept by car enthusiasts is a collector’s car. We therefore invite our customers to have an expert report every 3 years in order to update the insurance documents and be fully covered in the event of an accident or theft.

In France, 100% electric or hybrid cars accounted for 16% of the market in the first half of 2021. How do you insure these vehicles?

With this change which tends to intensify over the years, it is necessary to rethink insurance contracts by adapting the services to new breakdowns. If a Tesla breaks down, it should not be taken to a service station, but to a charging station. Hybrid and 100% electric vehicles embed different technologies; we therefore have experts specialized in these cars where the computer takes up as much space as the mechanics.

As a leader in the sector, TEA CEREDE adapts to the market. We are demonstrating innovation by launching the first insurance contract intended to cover Premium electric and hybrid vehicles with a specific pricing approach adapted to the use made of these vehicles.

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