The Hidden Cost of Prestige: Why Luxury Car Rentals Command Premium Prices

Insurance premiums for a luxury car rental fleet are dramatically higher than for a standard fleet, reflecting the greater financial risk associated with these high-value assets. Should a Ferrari or Lamborghini be involved in an accident, even a minor one, the repair and replacement costs are astronomical. Furthermore, the risk of theft is also heightened for such desirable vehicles. Rental agencies pass on the cost of comprehensive insurance, which is often required to cover the full replacement value and liability, directly to the customer in the form of a higher rental price.