What you need to know to insure a luxury car

Whether it is a collector’s item or considered top-of-the-range, a prestige car cannot be insured like a classic vehicle. Since many non-life insurance companies refuse to cover them, it is sometimes mandatory to turn to specialized insurance companies. Explanation with Pierre Sudreau, CEO of TEA CEREDE, a leader in prestige vehicle insurance.

Why TE CEREDE Considered a Pioneer in Luxury Car Insurance?

A car is considered a luxury when its new purchase price exceeds € 50,000 excluding options. When not purchased new, its value on the second-hand market must not be less than € 20,000. In terms of the used market, it is vehicles that trade between 20,000 and 300,000 euros.

TEA CEREDE has insured collector cars since 1960 and prestige cars for 15 years. We therefore have extensive experience in this market, and as pioneers we have real know-how. We design ourselves, with the large insurance companies, contracts adapted to the special conditions that luxury cars impose.

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

The question goes on, because even if you want to insure your prestige vehicle with a traditional insurance company, it is sometimes impossible. As the price of these cars is higher than average, the general insurance companies are not able to offer suitable deals.

With top-class cars, the risks are actually different: difficulties in intervening with conventional tractors (some brands such as Lamborghini are very low), risk of major and more violent theft (car power), more spare parts expensive, etc.

How does TEA CEREDE adapt to these constraints?

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

In addition to the material aspect, there is also the power of the engine, which can deter conventional insurance companies. To overcome this problem, we give experienced customers at least 28 years and 4 years license.

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

It is all the more important to use special insurance 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 an insurance that is able to take into account this nuance 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 be of interest in being held by car enthusiasts, is a collector car. We therefore invite our customers to have an expert report every 3 years 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 benefits to new crashes. If a Tesla breaks down, it should not be driven to a gas station, but to a charging station. Hybrid and 100% electric vehicles integrate various technologies; we therefore have experts specializing 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 demonstrate innovation by launching the first insurance contract designed to cover Premium electric and hybrid cars with a specific pricing tailored to the use of these vehicles.

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