If you own an exotic or luxury car, you should buy full coverage car insurance to keep your investment protected.
If you have a luxury car from a brand like a Mercedes-Benz, BMW, or Porsche, you’ll need full coverage insurance. That’s because of how costly and high-performance these cars are. We recommend purchasing liability, comprehensive, collision, personal injury protection, and gap coverage for luxury cars. If you have an exotic car—like a Ferrari or Lamborghini— consider purchasing a specialized auto policy.
Luxury and exotic cars may come with plenty of perks. But they also come with a high price tag, high risk of theft, and costly repairs. Those are all reasons why exotic and luxury car insurance is expensive. Find out how to insure your luxury, sport, or exotic car in this article, which covers:
Luxury cars can cost more than $100,000, need special tools and knowledge to repair, and require unique parts. They're more expensive to maintain than an average car. Your auto insurance rates will reflect that by costing more than a policy for a Toyota or Honda.
There’s no question – you need auto insurance for your luxury car. Because there’s a lot of money at risk if you damage or total your car, we recommend purchasing full coverage auto insurance, including:
Luxury car insurance will be high-priced, there’s no way around it. However, there are some actions you can take to minimize your luxury car insurance rates. These are some ways to lower your prices:
Exotic cars are in a different insurance game than luxury cars. While luxury cars can be insured by standard auto policies, it can be difficult to find insurers that will cover exotic cars. That’s why you’ll need specialized insurance. Lamborghinis, Ferraris, and Aston Martins are all considered exotic cars. Exotic cars are more expensive and rarer than luxury cars. They need an insurance policy to match.
One reason specialized auto insurance is favored over standard auto insurance is that the latter only pays out the “actual cash value” (or “stated value”) of a car declared a total loss after an accident. The value of standard vehicles decreases the older they get and the longer they’re driven. Insurers base the price of their standard policies on that depreciation. Most exotic cars, however, increase in value—or at least retain their value--over time. That’s where agreed value comes into play.
When you go to take out a specialty car policy, you, your agent, and your insurer’s underwriters determine the agreed value of your vehicle. Your auto’s age, features, and rarity are consulted to come up with this value. Then, if your car is ever totaled, you will be paid that full, agreed-upon value.
So, if the agreed value of your vehicle is $500,000, that’s the amount you’ll receive if it’s found to be a total loss after an accident. If you insured the car with an actual cash value policy instead of agreed value, you’d get less than that. That's because of the depreciation factored into the insurance company’s calculations.
It may come as a surprise, but your exotic vehicle may cost less to insure than your daily commuter car. Why would insurance providers charge you less to protect an exotic vehicle than they would to protect an ordinary one?
Exotic cars are often driven less, and for fewer miles, than everyday cars. Also, most exotic cars are well-maintained. Combine those two elements and it’s easy to understand why insurance companies are willing to cut owners of these vehicles a break on their premiums.
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