These are specimens that are limited in number. This article details the definition of an exotic car and the recommended coverage options.
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There are antique cars that can also be considered exotic, and may not have the ability to travel at 120 miles per hour. Those who own exotic cars usually purchase a different type of insurance than most other car owners.
Some examples of exotic cars that may need expanded or customized coverage include:
- Lamborghini Gallardo
- Aston Martin DBS Volante
- Ferrari 599 GTB Fiorano
- Maserati Gran Turismo
An exotic car usually costs over $100,000. Some people may pay as much as $400,000 for a new one. Antique cars that fall in the exotic category could cost upwards of a million dollars for some. Antique car insurance or classic car insurance is also available for some of these other vehicles with slightly different specifications.
What is exotic car insurance?
When we think of car insurance, most people think of the standard requirement by the state where we live. Most policies offer:
- Personal Injury Liability
- Property Liability
- Comprehensive coverage
- Collision coverage
Each state has its own minimum requirements based on driving conditions and other factors. Exotic car insurance policies usually carry special provisions for specialty parts, accidents, and replacement value.
An exotic car owner can not go to your everyday car parts store to find specialty parts. They usually have to be ordered from a specialty parts provider. The replacement value of an exotic car is also different from the replacement value of your standard BMW for instance. An exotic car insurance carrier is prepared to negotiate the value of a specialty vehicle when the policy is established.
How Exotic Car Insurance Differs from Standard Policies
There may be a division for exotic cars where standard insurance is available. Moreover, there are companies that offer exotic car insurance exclusively. These outfits may even group specialty policies for such categories as:
- Boat Owners
- Muscle cars
- Race cars
- Luxury vehicles
Most exotic cars do not depreciate in value in the same way that standard cars do. Although the location of the car is still an important factor, more emphasis is placed on its value. Special car insurance carriers are well versed in car values and the cost to replace them. In the event of a claim, the underwriter is not scratching their head while trying to figure in these exclusive factors.
Does exotic car insurance cost more than standard car insurance?
Surprisingly, the cost to insure is relative to the car itself, the frequency of use and the driver, just like standard insurance. An antique, classic or exotic car may not be driven as often as the driver’s everyday car, and may therefore be cheaper for a driver with good credit. On the other hand, a 24 year old with bad credit may have to pay dearly, for insurance, on their Audi R8.
Exotic Car Insurance Coverage
Exotic car insurers understand the need for specialty parts and expanded needs. They will not require three estimates or play negotiation games on replacement. This is because the value is established up front. Although state minimum requirements cover personal injury and damage to the other car, state minimums will not cover repair costs to the exotic car.
Most policies allow the exotic car owner to have the car repaired by a specialty outfit of their choosing, and pay the garage directly. Collision and comprehensive coverage is much higher than the standard while premiums remain affordable. Owners can also save money by customizing their policy needs.
Many major carriers opt out of carrying exotic car insurance coverage because of the risks. Most carriers are designated to a smaller region than the majors while online carriers may have special permission to offer coverage in certain states.
Exotic car insurance may be found the same way standard car insurance is found. They do not advertise like standard carriers because most owners seek them out. A couple more pieces of information may be required when requesting a quote though. There are also exotic car clubs who refer their members to online sources such as exotic car insurance carriers. An online search will reveal what is available in your area.
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