Compare Supercar Car Insurance Rates [2023]

If you’re a car enthusiast who has a passion for exotic pieces of machinery, you may be on a mission to buy yourself your favorite supercar, but is car insurance for supercars expensive? Supercars, also known as exotic vehicles, are more than just standard private passenger vehicles. These high-performance and high-design vehicles tend to be rare and are not designed to be driven for your daily commute or your long-distance road trip. You’ll need to compare the best car insurance companies to find coverage for such a rare and expensive vehicle. Not all companies offer supercar insurance. We understand that supercars are complicated, as is finding the right supercar insurance provider. Get a good start by comparing supercar insurance costs now by using our FREE tool above.

Rate Calculation: Traditional Insurance vs. Supercar Insurance

Standard car insurance policies are designed to protect the owners of standard private passenger vehicles that can range in size and value. Standard models of compact cars, trucks, vans, and full-size cars will all qualify for standard insurance because they hold a reasonable value and the insurance company can use fair market data and trends to evaluate the car when an insured individual files a claim or seeks car accident insurance claims advice. Since supercars are rare, most companies in the standard market will not cover them. Instead, you must purchase a specialty plan that is designed to cover a unique yet high-risk vehicle. To truly understand why the rates are significantly different when you’re shopping in the traditional market vs. the specialty private market, you need to understand the difference between classic and standard car insurance and learn how underwriting and rate determination processes differ between the two.

Every insurance company, no matter what type of market or demographic they target, will take the time to assess risk and to determine how much they need to collect in premiums from a driver in order to make a profit.

Since there’s no real way for an insurer to know if they’ll have to pay for claims throughout a term, the only thing it can do is review an application, review demographic factors, look for red flags, use claims information, compare data, and assign rates based on what is found. How rates for a specialty supercar insurance plan and a traditional plan are calculated vary dramatically. This variance plays a major role in why the rates can be much higher for exotic car insurance. Even routine insurance for an exotic car can be outlandishly expensive. For instance, routine service on a Bugatti Veyron, valued at over a million dollars, costs about $21,000. Insurance companies take this into account, which is why the average annual insurance cost for a Bugatti is a whopping $50,855. The insurance companies also know that just because someone can afford a sports car doesn’t mean they can drive it well. This is why most exotic car insurers are of the specialty variety. These specialty car insurance companies, like Grundy or Hagerty Insurance, use agreed-value policies, according to NASDAQ. This is where the owner decides what the car is worth and pays a premium based on that preset value. This makes something like a Kelley Blue Book value irrelevant.

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Supercar Insurance Cost Determination for Supercar Specialty Insurance

Supercar insurance cost determination for a supercar is a bit more involved than traditional coverage. All the factors that are used during the determination of rates for a traditional car, discussed below, will extend to a specialty plan as well. The main difference will be in how risk is assessed for the vehicle. Since the car is rare, there will not be a long list of claims or data from repair shops that the company can use to decide what is appropriate. This is why private specialty insurers will consider different aspects to setting a premium for an exotic car. Some of the factors that private insurers use during underwriting include:

• Original purchase price
• Current appraised value of the car
• Add-ons or modifications
• Accessories
• Age of the vehicle
• Parts used in the engine
• Maintenance history
• Condition of the interior
• Repair history or parts used in repairs
• How often the vehicle is driven
• If the vehicle is stored in a locked garage

Even with supercars, what is truly being analyzed is driving habits and history. The owner’s level of responsibility comes into play not just in terms of accident history, but in how they’re going to treat their supercar.

The fact that the insurer will want to know if you’re going to store your car in a locked garage is proof of this.

Car insurance companies are serious about precautionary measures like these, and chances are, so are you. It’s highly doubtful that an individual would spend an inordinate amount of money on a car and classic car insurance without a garage. Still, even most specialty companies will deny supercar coverage if the vehicle is just going to sit in someone’s driveway. Supercars are like classic cars. These are not the standard four-door sedans you use to get to work. They’re essentially novelty items. Be honest with your insurance company about how you’ll treat your prized possession, and you should be just fine.

Rate Determination for Traditional Insurance

When a car insurance company is establishing rates for a standard car, they reference an industry-wide and specific set of factors that affect car insurance rates based on how much risk is present and ultimately how much the applicant should pay for six or 12 months for sports car insurance. While some companies have their own special brand discounts, most of the information and data referenced when determining and filing rates will be the same. The most common rating factors used by standard insurers include the following:

• Driving history affects your insurance rates
• Accident history
• Driving experience and habits
• Vehicle usage and mileage
• Vehicle type and classification
• Your job affects your car insurance
• Gender, age, and marital status
• ZIP code where the vehicle is stored

Vehicle type does play a role in how much insurance will cost, but not as big of a role as it will play when you’re buying supercar insurance.

Standard companies only use a car’s average cost of repairs and claims history to assign the vehicle a class.

The insurer may also use claims data to determine if a model is known to cause injuries or significant damage to third-party passengers and property.

The value of the car really is not a determinant that will impact pricing if you own a car that can be covered under traditional policies. The history of the driver is what will be most important. For the next few data tables, it’s assumed that the driver is a middle-aged male with a clean driving record. These tables should show you what to expect in terms of rates in a best-case scenario. Let’s start with liability car insurance coverage for all 50 states and the District of Columbia. The averages were determined based on five years of data (from 2011 to 2015).

As you can see, the average for liability insurance coverage is $516.39. Liability insurance is usually the most expensive component of full coverage car insurance. Where does your state fall in comparison?

Next, let’s take a look at collision car insurance coverage.

The countrywide average for collision coverage is $299.73. Where does your state’s average rate stand in comparison?

Now, we’ll look at the final piece of the puzzle before moving on to full coverage averages. The next table looks at comprehensive car insurance coverage, which is generally the cheapest component.

The countrywide average for comprehensive coverage is $138.87. Where does your state’s average fall in comparison?

Finally, let’s take a look at full coverage averages.

The average cost of full coverage countrywide is $954.99. So, are you paying too much for car insurance?

Why Supercar Insurance Costs Are Higher for Most Specialty Plans on Exotic Cars

You might assume that people who can afford to buy a high-priced supercar will expect the premiums to be exorbitant, but when you learn just how much higher they can be, you might be shocked. After all, even though a supercar can hold a six-figure price tag, there are standard cars that cost well over $60,000 as well that are driven daily.

Unfortunately, to afford the cost of maintaining and insuring a supercar, you will need to be astronomically wealthy.

The reason supercar rates are so high is because of the value of these cars and the fact that they’re more likely to be targeted by thieves. Understanding market value and car insurance can help you understand the price. Unlike a traditional policy, where the insurer can calculate the fair market value of a car and then make an offer, private insurers must pay a 100 percent agreed-upon value for a supercar claim. Again, this value is determined in cooperation between the insurer and the policyholder.

The agreed value provision means that the owner of the car can set the value, and the insurer is on the line to cover this regardless of the car’s age. The cost of insurance can vary from car to car and from agent to agent. Since there is no depreciation and one claim could cost the insurer millions, the insurer must collect adequate premiums to justify the risk being taken. If you’re willing to spend six figures on a supercar then, as NASDAQ reports, you need to be willing to spend thousands of dollars every year on your insurance. While it may seem enticing to own such a formidable and rare vehicle, you need to be aware that insurers view them the same way. Supercars are seen as a specialty item, so a special policy is in order. Most insurers do not see the risk as worth the potential gain.

These vehicles are infrequently made — not in bulk — and so the parts are even less widely available. So, really, you have to do a cost-benefit analysis of your own. If you’re willing to pay thousands a year for insurance, now is the time to analyze coverage level costs. After all, if you’re going to own a supercar, you’re going to need insurance to take it out on the road. Many companies that provide insurance for luxury cars allow you to pay your premiums both on a monthly and yearly basis; that is completely up to you. You should comparison shop and try to find the best deal with a company that knows this market in and out. Use an online comparison tool that connects you to supercar insurers and lets you browse through instant quotes.

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Can’t you just cover your supercar on your regular auto insurance policy?

Because of the high replacement and repair costs for supercars, your auto insurance provider will require you to purchase a special policy for your vehicle. If you’re financing your supercar, your loan company may require you to carry full coverage insurance. Most regular auto insurance policies will not cover a supercar. Before you even show up at the car dealership, you may want to have conversations with various auto insurance companies about what options there are for supercar coverage.

The Bottom Line

There are a number of factors that will determine how much you will pay for your supercar auto insurance policy. The cost of your vehicle, your credit history, the address where the car will be parked, and many other factors go into determining your supercar insurance costs or rates.

It may come as a shock to many drivers that auto insurance companies take your credit rating into account when determining your supercar insurance policy pricing. The reason for this is that insurance companies believe that drivers with higher credit ratings are less likely to submit a claim. Many companies that provide insurance for luxury cars allow you to pay your premiums both on a monthly and yearly basis; that is completely up to you. Is car insurance for supercars expensive? Find the best deals by entering your ZIP code into our FREE tool below to compare rates now.

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