If you own a luxury, performance, or collectible vehicle in Georgia, you've likely wondered whether standard auto insurance is sufficient — or if you should invest in premium coverage tailored for high-value automobiles.
At Concierge Insurance Group, we frequently address this question. In this article, we provide a transparent comparison to help you determine which option best protects your automotive investments.
Six Critical Differences Between Standard and Premium Auto Insurance
Let’s dive into the most important distinctions you need to know:
1. Valuation Method: Actual Cash Value vs. Agreed Value
Standard Auto Insurance: Pays based on actual cash value (ACV), factoring in depreciation.
Premium Auto Insurance: Uses agreed value, paying the full insured amount without depreciation.
Why It Matters: Luxury and collectible vehicles often depreciate differently — or even appreciate — unlike standard cars.
Real Example:
A client’s 2018 Mercedes-Benz S-Class valued at $92,000 was totaled. A standard policy paid only $68,000. After switching to premium coverage, their next totaled vehicle paid the full $95,000 agreed value.
2. Repair Specifications: Aftermarket vs. Original Parts
Standard Auto Insurance: Often uses aftermarket parts and limits labor costs.
Premium Auto Insurance: Guarantees OEM parts and covers specialized repair labor rates.
Why It Matters: Aftermarket parts can affect your vehicle’s performance, safety, and resale value.
Real Example:
An Audi A8 owner faced $8,200 in out-of-pocket costs under a standard policy due to aftermarket parts requirements. Premium insurance later fully covered OEM repairs.
3. Diminished Value Coverage
Standard Auto Insurance: Rarely covers the reduction in market value after repairs.
Premium Auto Insurance: Compensates you for diminished value.
Why It Matters: A luxury vehicle can lose 10–30% of its value post-accident — a huge financial hit.
Real Example:
A BMW 7 Series owner lost $12,000 in market value without compensation under a standard policy. Premium coverage later reimbursed $9,500 for a subsequent loss.
4. Rental Car Coverage: Basic vs. Comparable
Standard Auto Insurance: Provides basic rental coverage (~$30–$50/day).
Premium Auto Insurance: Covers luxury rental vehicles, matching your car’s class.
Why It Matters: A compact rental car doesn’t exactly replace a Porsche or Maserati during repairs.
Real Example:
After a Porsche Cayenne accident, the client faced $1,785 in rental costs under a standard policy. Premium insurance now covers up to $150/day for a comparable vehicle.
5. Worldwide Coverage Extension
Standard Auto Insurance: Limited to U.S., Canada, and sometimes Mexico.
Premium Auto Insurance: Often covers you worldwide, including rentals abroad.
Why It Matters: Renting luxury vehicles internationally? Standard coverage leaves you exposed.
Real Example:
A client faced a $22,000 repair bill after damaging a Ferrari rental in Italy—not covered by their standard U.S. policy.
6. Specialized Claims Handling
Standard Auto Insurance: Generic adjusters unfamiliar with exotic vehicles.
Premium Auto Insurance: Dedicated adjusters trained in handling luxury, performance, and collectible vehicles.
Why It Matters: Specialist adjusters prevent delays and undervaluations.
Real Example:
A Maserati owner's claim was undervalued and delayed six weeks under standard insurance. With premium coverage, they now work with experienced adjusters.
Additional Premium Auto Insurance Benefits for Specific Vehicle Types
Premium coverage goes beyond standard differences, offering targeted benefits:
For Collectible and Classic Cars
Flexible usage (occasional drives, not daily use)
Appreciation protection
Specialized restoration coverage
Storage protection
Real Example:
A restored 1965 Mustang valued at $68,000 was only covered for $28,000 under a standard policy. Premium insurance now ensures full value protection.
For Luxury SUVs and Family Vehicles
Protection for custom entertainment systems
Specialized materials and custom features
Enhanced coverage for modifications
Real Example:
A Range Rover owner with $20,500 in custom enhancements received only partial compensation under standard insurance but full coverage with a premium policy.
For Performance and Exotic Vehicles
Optional track day coverage
Higher liability limits
Coverage during transport and storage
Mechanical breakdown options
Real Example:
Damage during a Ferrari’s transport was denied under a standard policy. Premium insurance now protects during non-driving events.
Cost Comparison: Is Premium Auto Insurance Worth It?
Typical Cost Difference:
Standard Policy: $1,800–$2,400 annually for a $90,000 vehicle
Premium Policy: $2,000–$3,000 annually
That’s roughly a 10–25% increase for far superior coverage.
Why Premium Insurance Is Often Worth It:
Avoid significant out-of-pocket costs
Better protect your vehicle investment
Streamlined claims process
Potential multi-policy discounts (bundling auto, home, and umbrella coverage)
Who Should Choose Standard Auto Insurance?
Standard insurance may be appropriate if:
Your vehicle is under $50,000
You replace vehicles every 2–3 years
You’re comfortable with higher out-of-pocket risk
Budget constraints are significant
Who Should Choose Premium Auto Insurance?
Premium coverage is recommended if:
Your vehicle exceeds $50,000 in value
You own collectible, exotic, or limited-production models
Your vehicles feature substantial customization
You require OEM parts and international coverage
You own multiple high-value vehicles
The Concierge Insurance Group Approach to Auto Insurance
At Concierge Insurance Group, we offer a client-centered process:
Comprehensive Vehicle Assessment: Tailored to your vehicle and lifestyle
Side-by-Side Comparison: Transparent analysis of coverage options
Honest Recommendations: Even if standard insurance is better for you
Regular Policy Reviews: Keeping your coverage aligned with your needs
Take the Next Step: Get Your Personalized Comparison
Ready to find out whether standard or premium auto insurance is right for your luxury vehicles?
Concierge Insurance Group offers complimentary coverage comparisons for owners in Duluth, Atlanta, and throughout Georgia. Many are surprised at the significant coverage improvements — often at a modest price difference.
