The Ins & Outs of Exotic Car Insurance: How To Choose A Policy

The Ins & Outs of Exotic Car Insurance: How To Choose A Policy

What You Should Know Before You Buy

Ever wonder what it would be like to roll up on your grandma’s 80th birthday celebration in a Bugatti or McLaren? Maybe you’re like my son and have your sights set on having a collection of supercars that makes the Sultan of Brunei’s collection look puny. In case you were wondering, the Sultan owns over 7,000 exotic cars. We’ll stick with HotWheels for now. If you’re like the average exotic car fanatic, though, you’d be happy to own just one. In order to for that dream to materialize into reality, there are a few things you should know

  • They are expensive

Exotic cars are some of the most expensive vehicles on the planet. Ranging anywhere from a basic Lamborghini at $100,000 to the most expensive car on the market, La Voiture Noire, by Bugatti, topping out at nearly $19 million dollars. That’s not to say you can’t afford one, it just means you’ll have to plan carefully and start pinching pennies sooner rather than later. 

  • They are made to be driven

One of the biggest mistakes exotic car owners make is not driving them. It’s tempting to leave your car parked in a climate-controlled storage space (your garage), but these cars are made to be driven. In order to maximize the lifespan of your exotic car and minimize costly engine repairs, you should drive this car just as you would any other one. The longer they sit unused, the greater the likelihood you’ll run into issues like belts locking up. 

  • They retain their value

The biggest difference between a supercar and a “normal” car is that these cars retain their value. Not only do they not depreciate, many of them actually become more valuable as they age. Since the production of these super beasts is limited, once they’re gone, they’re gone. We all know the law of supply and demand…the less of something there is, the more people are willing to pay for it. 

  • They outperform every other vehicle

Supercars aren’t just built for looks. Under the hood of that Ferrari lies its greatest asset: its engine. These vehicles are engineered using some of the highest quality components in the world. They are designed with speed and functionality in mind and will outperform nearly every other car on the market. 

  • They also require special insurance

Not only are exotic cars expensive, they are costly to fix. This is why you need special insurance coverage. These cars aren’t made of components that are manufactured in any run-of-the-mill factory and replacements must be original. As such, when something needs to be fixed, it will be hard to come by and again, supply vs demand. You get the picture. 

Exotic Car Insurance Explained

Specialty insurance for exotic cars is much like other insurance, but it is usually much more costly.  Here are the things that will affect your bottom line

Factors That Influence Insurance Rates

  • General Factors

Like regular car insurance, specialty insurance companies also take into consideration the driver’s age, driving record, make and model of the car, and the condition. You’ll want to shop around to find the best rate

  • Type of Vehicle

Car insurance companies use a statistical analysis that includes the power of the vehicle to determine the risk of insuring. Since most exotic cars pack a fair punch, they rank as a higher risk

  • Cost Of Repairs

As mentioned earlier, repair costs are significantly higher to repair supercars than other cars. So, in the event you incur damages to your vehicle, it will cost the insurance company more to fix it. These cars also need to be serviced at shops that have the capability to service them, and repairs shops as such are difficult to come by. 

Money-Saving Tips

Knowing ahead of time that you’ll pay more, you should do everything you can to save money. Aside from safe driving habits, make sure you maintain your vehicle with regular service checks and know where you can take it for repairs ahead of time. You should also have an idea of what the most common malfunctions are so you can stay a step ahead if possible. Perhaps one of the most important things you can do is to engage in safe driving.

Exotic car ownership can be thrilling and rewarding. And while you might never own 7,001 of them, you now know what to expect when you are able to purchase one. 

This content was originally published here.

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