Auto Insurance Coverage Options For Exotic Cars: Protecting Your Investment

Insurance Blog

Exotic cars are a significant investment and require special consideration when it comes to insurance. Standard auto insurance policies may not provide sufficient coverage for the unique needs of exotic cars. Instead, an exotic car insurance policy is often necessary. Here are some types of coverage that exotic car policies typically provide.

Liability Insurance

Liability insurance is the most basic coverage that is required by law for all drivers. It covers the cost of any bodily injury or property damage that you may cause to another person while operating your exotic car. 

While both standard auto policies and exotic car policies provide liability insurance, exotic car policies might extend liability coverage to more situations. Specifically, an exotic car policy may provide protection on private racing tracks and at shows. Standard auto policies aren't designed to give the same protections in these situations.

Collision Insurance

Collision insurance covers the cost of repairing or replacing your exotic car if it is damaged in an accident. It can also provide coverage for a rental car if your exotic car is being repaired. 

This coverage is important for exotic car owners as the cost of repairs can be significantly higher than for standard cars. Although standard auto policies have collision coverage, the terms of the coverage can be adjusted in exotic car policies to better protect expensive vehicles.

Comprehensive Insurance

Comprehensive insurance covers the cost of damage to your exotic car that occurs outside of a collision, such as fire, theft, vandalism, or natural disasters. Again, the coverage should be obtained through an exotic car policy rather than a standard one when insuring an expensive exotic vehicle.

Agreed Value Coverage

Agreed value coverage is a type of coverage that is specifically designed for exotic cars. It guarantees that the insurer will pay the agreed-upon value of the car in the event of a total loss, whether in a collision or another incident. 

Exotic car owners should consider this coverage, as the value of their car may appreciate over time. Standard policies only pay the current market value at the time of the loss and aren't intended to cover appreciation. Agreed value coverage is unique to exotic car policies.

Stated Value Coverage

Stated value coverage is similar to agreed value coverage in that it guarantees a certain value for the car in the event of a total loss. However, the value is determined by the policyholder and not agreed upon with the insurer.

Again, stated value coverage isn't available through standard auto policies. It's an option in exotic car policies, though, and one that drivers should consider if they don't like the agreed value amount that an insurer offers.

Contact an auto insurance agent for more info


30 January 2023

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