An exotic car, sometimes referred to as a supercar or hypercar, is a vehicle that is typically described as a street legal, luxury performance sports car. Exotic cars are typically the highest-end performance vehicles that a manufacturer offers, often priced with large retail values. Some other terms used interchangeably with exotic cars are:
Just as with other insurance policies, there are a variety of factors that insurance companies use to determine insurance costs and rates. Some of the possible factors that may be taken into consideration when determining insurance costs for your exotic car are:
Exotic cars may be quite different than what a typical vehicle looks and performs like, but there are some basic coverages available for both your exotic car and some more commonly owned automobiles.
Many exotic and luxury car insurance policies include and a number of optional coverages that you can select or choose to forego. For example, some available coverage options often include agreed value, spare parts coverage, tiered mileage plans, travel coverage, and more.
Agreed Value – An agreed value plan is when you and your insurance company agree upon the value of your exotic car at the time that you purchase your policy.
Parts Coverage – Including parts coverage into your exotic car insurance can help you obtain parts for your rare vehicle if a qualifying event occurs and your vehicle’s parts are destroyed, damaged, or stolen.
Tiered Mileage – A tiered mileage plan is when you agree to limit the total number of miles that you will put on your exotic vehicle in a year to an amount that is agreed upon by the insurance company.
Worldwide Coverage – Traveling out of the country can be exciting, especially if you plan to include bringing your exotic car for shows or events. Typically, a standard auto policy is restricted to inside the U.S., resulting in a need for this coverage if you plan on taking your exotic vehicle outside of the country.
Car Show Coverage – If you are a frequent participant in car shows and other auto exhibitions, you should consider this coverage that can help in the event that someone is injured by your vehicle while it is at a show or exhibit.
Exotic and luxury cars are not only rare machines that require both delicate care from you the owner, but require proper attention to insurance coverages. At Cross Private Client, we can help you explore your options when it comes to exotic car insurance. With locations across the Northeast, you can visit one of our offices or contact us today to find out more.
___________________________________________________________________
This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.