Exotic cars are expensive, although generally smaller than a standard sedan. They usually have only two seats and an engine designed for competitive racing.
However, they're not confined to such a rigid definition. If you have exotic cars in your fleet, it means that they have some extraordinary features. You are probably asking yourself which companies offer exotic car fleet insurance.
Car insurance companies classify exotic cars depending on the make, size, the number of cylinders, model, and horsepower. The more horsepower a car has, the easier it is for it to accelerate its speed. This factor makes an exotic vehicle more prone to accidents, hence higher insurance rates. However, it shouldn't cost you an arm and a leg to insure your exotic car.
Before you set out looking for an insurance company for your exotic car fleet, there are factors to consider.
What is Different About Exotic Cars?
If you've owned a non-exotic car, you know how fast it depreciates. Exotic vehicles are assumed to appreciate over time. This is what makes the exotic car insurance market different. You are not likely to have much luck if you call a nationwide insurance company seeking to insure your luxury car.
Insurance coverage is tailored to the car's needs and the individual driver rather than the state minimums.
What Type of Insurance Do You Need for a Luxury Car?
Car insurance experts recommend having the following insurance coverages:
- Personal liability that covers you from liability claims that hold you liable for damages
- Collision and comprehensive insurance policy covers damage to your car if you hit another vehicle or structure. This policy covers the total cost of repairs regardless of who is at fault.
- Personal injury protection and medical coverage. This covers the medical bills of the passenger in case of an accident regardless of who is at fault.
- Fleet insurance for businesses that own several exotic cars. All the vehicles are covered under one plan.
Some insurance companies provide all-in-one insurance coverage that gives you umbrella-like protection. Dealing with a single provider is better than having multiple insurers with different requirements, premium structures, and procedures.
Where to Find Exotic Car Insurance
You want to choose a reputable company for your exotic car fleet insurance. Unfortunately, it will be hard to find one by doing a simple online search. Your best bet is to talk to exotic car dealerships.
Alternatively, consider becoming a member of exotic car clubs. The members have insider knowledge that can lead you in the right direction to finding a reputable exotic car insurance company.
How do You Know if a Company is Reputable?
The first place to check is the Better Business Bureau. If a company doesn't appear on this list, it probably isn't reputable. A company with many stock photos instead of real ones on its website is probably not reliable.
This is when an online search can come in handy. However, ensure you still do as many background checks as possible before making any commitments.
How Much is Exotic Car Insurance Worth?
The cost of insurance for exotic cars depends on several factors. For example, the Ferrari Portofino Convertible worth $279,575 would cost you about $2,785 every six months in insurance. However, this is not expensive compared to the sticker price of the car.
Some reasons why insurance for exotic cars is expensive include:
- The high cost of parts replacement
- Higher risk of theft
- Greater horsepower puts it a higher risk of damage
- Less advanced safety features compared to sports cars
How Can You Save Money on Exotic Car Insurance?
The best you can do to save money on any car insurance is to encourage safe driving by your team. Consider dropping any unnecessary coverage, although this would be hard to determine with an exotic car. Additionally, go for a policy that limits the drivers on your policy and the mileage you can drive your vehicle.
Having a sound insurance solution for your fleet of exotic cars is a requirement. If all this is too overwhelming for you, let an expert in fleet management help. Contact us today to book a consultation.