That sleek red Ferrari or stunning black Lamborghini might be the car of your dreams, but chances are that just because you can afford an exotic sports doesn’t mean you wouldn’t prefer cheap car insurance over expensive coverage.
You probably already know that your best bet for getting any insurance is to contact a company that specializes in exotics, collectibles and antiques but you may not understand why. Here are a few reasons:
Agreed value. Instead of basing your coverage on the blue-book value of the car minus depreciation, your coverage will be based on a value, including any special features or modifications, that you and your insurer agree to, though in some cases an appraisal may be required.
Coverage. Exotic and collectible insurance extends to include some equipment and trailers, if you show your car, and sometimes even refunds your entry fees if you get stranded on the way to a show.
Low Deductibles. Deductibles for specialty cars tend to be low, and are sometimes non-existent.
Of course, there are also restrictions on such policies, such as:
You must have a clean driving record, and significant experience behind the wheel. In some cases there are also age restrictions.
Because neither exotics nor collectible cars are intended to be driven daily, there are mileage restrictions from some insurers, and almost all of them require that you have another car that is both registered and properly insured.
Security is important. Most exotic and collectible auto insurers require storage in a locked garage when the car isn’t in use.
What’s important to remember about these restrictions, is that they’re also factors in making specialty policies less expensive than standard insurance. After all, insurance premiums are based on risk, and as the owner of an exotic car you’re more likely to live in a safe, suburban neighborhood, with garages, be a mature driver, and have more than one car.
You can make your insurance premium even lower by exploring the following options:
Are you a member of an owners group or enthusiasts club? Many such organizations have group discounts with insurance providers.
Have you taken a defensive driving class? Doing so nets you a discount that lasts for three years with most standard insurers, and many exotic insurers will offer a discount for such classes as well.
Anti-theft devices save you money. If your car doesn’t already have a tracking device (like LoJack) or an engine immobilizer, consider adding one, because having one can lower your insurance rate.
Take a higher deductible. While most exotic and collectible policies don’t have high deductibles automatically, you can request one in exchange for lower premiums. This works with regular insurance as well.
Driving a high performance exotic car doesn’t have to mean paying high prices for insurance. By asking the right questions, and going to a specialty insurer, you’ll be able to get the coverage you need for a price that isn’t unreasonable.
