Exotic Car Insurance

Why Basic Car Insurance Won't Cover Exotic Cars

exotic car insurance

The term “exotic” refers to cars that are considered very elite vehicles, with price tags that could range from around $100,000 to a million dollars or more. Exotic car insurance provides coverage for such vehicles as Rolls Royces, Porsches, Ferraris and Lamborghinis, to name a few. These cars can be considered collector cars or everyday cars.

Such unique cars are very expensive to buy, own, maintain, drive and insure. They are some of the highest performing cars on the road, which means finding custom parts to repair them can be very expensive and hard to find. If you own an exotic car, you need an insurance agent who knows how to help you insure it properly.

How Exotic Cars Differ from Everyday Vehicles

  • They are very high performance; many drivers lack the experience to handle these cars.
  • Even simple oil changes or other regular maintenance can cost hundreds of dollars; not all auto shops have the right parts for these vehicles.
  • Repairs can be very expensive, but some exotic car owners choose to pay out of pocket rather than pay an insurance deductible because the premium is so high.

Do You Need Exotic Car Insurance?

Even if your exotic vehicle is just for show, you should consider an exotic car insurance policy. Here are some factors to consider when choosing the coverage you need:

  • The likelihood of filing a claim is higher if you drive the vehicle regularly, compared to treating it as a collector car.
  • If you are a good driver who is unlikely to get into an accident, you’ll still want to consider the potential hazards of other drivers on the road, and the possibility of another driver causing an accident who is uninsured or underinsured.
  • Even if you don’t drive it much and instead store your vehicle in a secure, enclosed space, you should consider the risk of theft, vandalism, fire and other potential hazards.

How Storage and Usage Affects Exotic Car Insurance Rates

Certainly one of the factors in getting exotic car insurance is how you use and store your specialty car. For example, you may only take it out for an occasional car show or Sunday drive.

Some exotic car owners collect exotic cars and store them in an enclosed, secure facility or garage. Others buy an exotic vehicle and use it as a primary mode of transportation. Both of these types of exotic car owners may require exotic car insurance, but the types of coverage will differ, so it’s important to discuss this with your insurance agent.

The Cost of Insurance Premiums

The cost of maintaining and insuring your specialty vehicle is undoubtedly something you think about, as an exotic car owner. Fortunately, there are a few things you can do to manage your costs. For example, consider taking a specialized driving course designed for those who own high-performance, exotic cars. Such a course can help you enhance your knowledge of high performance vehicles how their handling differs from regular everyday cars.

While taking these courses won’t guarantee that you can find the right coverage at an affordable price, an insurance company will be more likely to cover you, and may give you a discount for learning more about how to safely drive a high performance vehicle.

Another key to securing affordable exotic car insurance is, of course, to shop around among specialized insurance companies. Exotic cars are special treasures for many car owners, and should be adequately insured like any other treasured possession.

Now, who's ready to get their insurance problems solved?