Luxury Cars In The Philippines And How Much It Costs To Insure Them2 min read
Money can’t buy happiness. But for the extremely affluent, it can buy toys to put a smile on one’s face. In the case of minted car nuts, that would mean a fleet luxury cars sitting pretty in their garage.
If you’re seriously considering a luxury vehicle, congratulations. You’ll be joining the ranks of people who enjoy the best of the best cars.
However, with a great luxury car comes great responsibility. Since a high-end vehicle comes with an eye-popping price tag, you want to ensure you enjoy your ride while insulating yourself from the expensive risks of driving by getting car insurance for your luxury vehicle.
Before you even visit the prestigious showrooms of your favorite exotic brands, you may want to know first the price of insuring a high-end car.
To give you a sample, we tapped our friends from Standard Insurance to give us their quotes for 10 luxury car models available in the Philippines. Keep in mind that car insurance quotes for luxury vehicles are available only upon special request.
Lexus RC F
Total premium with taxes: P163,602.16
Ford Mustang 5.0L V8 GT
Total premium with taxes: P99,382.48
BMW 7 Series 740Li
Total premium with taxes: P303,853.35
Mercedes-Benz E-Class E 200 AMG-Line
Total premium with taxes: P140,437.20
Bentley Continental GT
Total premium with taxes: P576,500.30
Aston Martin V12 Vantage S
Total premium with taxes: P390,148.55
Total premium with taxes: P175,127.30
Porsche Carrera S
Total premium with taxes: P347,144.30
Ferrari 458 Italia
Total premium with taxes: P633,839.30
Land Rover Range Rover Sport
Total premium with taxes: P220,524.83
Anatomy of a car insurance premium
Like its price, a luxury car’s insurance premium is also more expensive than the average vehicle.
In a nutshell, the premium is based on a unit’s fair market value; the higher the estimated value of the insured vehicle, the higher the premium will be.
Based on the tariff rate imposed by the Insurance Commission, the sticker price of a car’s comprehensive insurance can go somewhere between 1.25 and 3.75 percent of the vehicle’s estimated value. Meanwhile, the optional acts of nature coverage will cost the owner 0.50 percent of his car’s value.
While the premiums for theft, own damage, and acts of nature rely on the value of the vehicle, the government’s insurance governing agency set a schedule of premiums for bodily injury and property damage. They are based on the following:
Bodily injury premiums
|Limit of cover||Premium|
Property damage premiums
|Limit of cover||Premium|
You will also have to pay some taxes such as documentary stamp tax, value-added tax, and local government tax. Compute them all together and that, friends, is how you get the insurance premium for your car.
Sources: BMW, Lexus, Ford, Priceprice.com, TopGear Philippines, Insurance.gov.ph