When you think of Luxury car’s you may think of prestigious manufacturers such as Porsche, Rolls Royce,Bentley, Range Rover and Mercedes-Benz perhaps Audi and BMW. There are many more luxury car brands and these are to name just a few. The high price and desirability of the car as well as the sheer amount of investment means that protecting yourself with a form of gap insurance is even more important.

That said there is a major downside in most levels of gap insurance for Luxury car‘s.

While it will not stop you from buying gap insurance for your luxury car it is a consideration that you must fully understand.

This is because in most cases the claim limit that you are offered even for a luxury car may be as little as £25,000.

Now we know that the whole idea of gap insurance is to fill in the “gap ” / bridge the difference between your cars valuation on the day it is written off and the original invoice price you paid in the case of return to invoice gap insurance or the replacement cost in the case of vehicle replacement insurance. This is normally not a problem as a claim limit of £25,000 is a massive amount of money for most models.

However if you are buying a luxury car with a luxury price tag attached you may find that this claim limit is simply not enough. Please do not forget that for your policy to be able to perform and that the claim limit must be big enough as the claim,  limit is the maximum amount that you will ever be able to claim from your gap insurance policy.

Please also remember that just like any other vehicle which ever luxury car you are buying it will depreciate just like any other model. This means that should you ever need to make a claim even if the amount you need to take you back to the invoice price was £35,000 you claim would be capped at £25,000.

We speak to many thousands of customers from luxury car  buyers to buyer of more mature vehicles and some are completely comfortable with the idea of their claim being capped however others prefer to increase the claim limit to a higher amount.

There is never any right or wrong answer which ever luxury car you buy as in theory there is absolutely nothing wrong with still electing for a £25000 claim limit providing you understand the ramifications.