Getting insurance on an exotic car

Getting insurance on an exotic car

If you are a car enthusiast, you’ve probably wanted your entire life to get your own exotic vehicle - A model with advanced features, an impressive aesthetical design and with a road performance that exceeds your highest driving desires. If you’ve finally managed to save enough money to become the owner of your dream car, you probably want to keep it in impeccable condition.

As smoothly as you drive, and as much attention as you pay to the road when you’re behind the wheel, sometimes, incidents can occur outside of your control. Even the least serious crash can lead to high expenses, considering the value of a luxury auto. This means, you need to take all means of precaution and get a great insurance policy.

What exactly should you focus on when making this type of purchase? The following pointers might clarify the subject a bit for you and help you make the best choices for your needs:

What’s different about exotic car insurance policies?
One of the first things you’ll need to do is acknowledge is the difference between regular auto insurance and exotic auto insurance. With a basic car model, as soon as you take it out for the first drive, its value will start to depreciate. That doesn’t work the same with exotic models.

Exotic cars are known to increase in value over time, which means, the exotic car insurance market is a slightly different one. Calling a regular car insurance company to get a policy for a Ferrari, for example, will not provide you with the help you need.

Each model that falls into this category of vehicles is unique, and of course, expensive, so the policy you’ll end up buying will be completely tailored to suit your specific car needs, and not just cover state minimums.

Where should you look for insurance?
The next step in the process is actually finding a company willing to provide you with the custom policy you demand. Searching online by typing your auto model and the word “insurance’ will not be enough here, as it would for standard vehicle brands. You’re advised to get in contact with experts and ask for their recommendations. A member of a luxury car club or an exotic car dealer will be able to give you a few pointers here.

Insider tips will help you more than a quick search on the internet, so request advice from someone you know has more expertise in this department. Just as you’d get insurance from USAA if you’d be a veteran in need of this type of service, the same goes for exotic vehicle ownership, you have to find specific companies that provide luxury coverage.

A reputable specialty insurance firm is the option to search for here. And because the number of exotic car owners is far lower, you’ll be less likely to deal with insurers that are unreliable. You still have to do your research, however. Once you receive a recommendation, find out enough details about the said insurer before buying from them.

But how can you be certain of the company’s good reputation?
Acting on an expert’s advice blindly is not the right thing to do. Take a look over the insurance company’s website and see what type of info you can get. A red flag would be coming across stock photos or not being able to find the company’s profile on reliable directory platforms.

Get your car appraised
To get a policy that rises up to your specific demands, you’ll first have to get it appraised. Each additional feature of your car can influence its total value, and if the current price of the vehicle hasn’t been stated from the beginning, your insurance won’t cover it later on, in case of auto theftor damage. Find a professional and pursue a proper car appraisal. Once an agreement on the value is reached, you can proceed with the actual policy purchase.

Set optimal restrictions
Driving a specific number of miles per year or not letting someone else drive the car are two types of restrictions that can be included in the policy, in order to lower the general price. Think about the things that would work for you, and choose restrictive characteristics you can actually keep up with. If you know from the start what you can and can’t do, based on the insurance company’s rules, you’ll prevent losing coverage out of neglect. These things should be discussed from the start – find a company that can provide flexible options.

Annually reassess the car value
As it was mentioned above, the value of exotic cars can fluctuate. If you stick with the same policy, but the price of your car has increased, you won’t be able to get as much money as you should if something happens to it. An annual value reassessment can prevent that type of situation from occurring. Set a date when you would reappraise the car annually, and update your policy shortly after as well. If your car becomes more valuable, why not have coverage that actually meets that value?

Why does it cost more to insure a sports/exotic/luxury vehicle?
A question you might have here is why the insurance price of exotic or sports cars is much higher than the one of average autos. Well, besides the obvious difference in price range, luxury cars are at higher risk of theft. The parts are also often more difficult to replace (they aren’t mass produced and the market is limited), and the greater horsepower adds to the likelihood of having an accident due to high speed. These factors explain the more expensive price.

Besides being mandatory, getting the right type of insurance can make an unpleasant situation easier to handle, so looking into policy options properly and choosing the right one is critical. Because this isn’t your average car, but an exotic, luxury model, you’ll need to pay even more attention to your insurance purchase. To better understand the subject, look carefully over the aspects underlined above. With the right policy in-check, you can get your luxury vehicle out for a spin whenever you want, knowing you are fully covered against financial losses.

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