When is it worth using your policy and when not? The decision that can devalue a high-end vehicle by up to 50%
Although insurance is seen as a financial protection tool, in the high-end vehicle segment, its improper use can have the opposite effect. Photo: Personal Archive
TL;DR
- Using insurance for minor damages on high-end cars can reduce resale value by 30-50%.
- Buyers of luxury vehicles check accident history, impacting final price.
- Using insurance for minor issues incurs costs like deductibles and future premium increases.
- Repairs done at authorized workshops with guaranteed parts are vital for maintaining market trust.
- Imported and costly spare parts can prolong repair times, affecting owner experience.
- Owners may opt to pay for minor repairs themselves to avoid insurance claims and premium hikes.
- Strategic use of insurance policies is key to preserving a luxury car's value.