Insuring a Luxury Vehicle in BC.
April 06 2021, Mercedes-Benz Vancouver
We spoke with Andrew Beaumont at Allwest Insurance, who explained the ins and outs of luxury vehicle insurance in BC and offered specific advice on how to secure the best policies and premiums for high-value vehicle owners, like you.
Take a moment to learn how to insure your new Mercedes-Benz, so that once you make your next purchase, all you need to do is drive away.
Luxury Vehicle Insurance in BC
A luxury vehicle designation is awarded by ICBC based on a vehicle’s value as well as its horsepower-to-weight ratio. However, any vehicle that costs $150,000 or more is likely to be deemed a luxury vehicle, and high horsepower alone can be a determinant.
If you’re considering purchasing a luxury vehicle, Andrew recommends talking to an insurance broker as your first step, for two important reasons:
- Most luxury vehicles require an application for coverage.
- Many luxury vehicles aren’t purchased for daily use.
Completing your coverage application early, with the support of an experienced insurance broker, allows you to accurately rate your vehicle’s usage and allows your broker to look at options on your behalf as soon as possible. It will help ensure that you get the right coverage at the right price in place as soon as you drive off the lot.
High-Value Premiums & Specialized Coverage
Higher-value vehicles come with higher-value premiums and tend to require specialized policies.
For a luxury vehicle like a Mercedes-Benz, expect your basic insurance (which covers the first $200,000 of your liability policy) to come with a premium that is approximately double the cost of what a lower-value vehicle premium would be.
Special Risk Policies
As a luxury vehicle driver, your insurance broker can help you determine whether or not you require a Special Risk policy. If you do, your individual policy will be based on vehicle value, use, and parking location. It will also be rated with each individual that will operate the vehicle, taking into account their complete driving history, including tickets.
Replacement Cost Coverage
If your luxury vehicle is damaged in an unforeseen event, like a collision or vandalism, you’ll want to ensure that repairs are done using only new, manufacturer parts— which is why Andrew encourages luxury vehicle owners, in particular, to think about Replacement Cost Coverage.
Following damage, this coverage provides you with the Original Equipment Manufacturer (OEM) coverage you need to pay for brand-new, manufacturer-approved parts. It also provides you with the invaluable peace of mind of knowing that your vehicle can truly be as good as new again.
Avoid Buying Out-Of-Province
Because luxury vehicle taxes run high, many potential buyers turn to out-of-province purchasing to help them save. But according to Andrew, this isn’t the win that buyers believe it to be.
Taxes are paid upon registration when an out-of-province vehicle returns to BC, which means that unfortunately, there are no tax savings to be had. In fact, it’s the opposite— leaving the province to buy your luxury vehicle will likely cost you more in travel than it will ever save you in tax.
Andrew’s Advice: Prioritize Speaking To An Agent
The earlier your insurance agent receives your application, the sooner they can provide you with your insurance quotes— and the sooner you can get your new Mercedes-Benz on the road.
