November 5, 2022
Car Insurance For Showroom Cars
Cars that can be classified as attractions in themselves like Ferraris and Lamborghinis are something truly special. They sure do hold a crowd. The same goes for classic and vintage cars that perhaps you take out once in a while on a weekend drive. Of course, what makes these cars so special is how much they are worth and their parts and features. Whether it’s because of rarity or top-of-the-line production, showroom cars are exotic and require car insurance of their own beyond the standard coverage. There are several reasons for this. This post looks at car insurance and those classic, luxury, and showroom vehicles.
What an Exotic Car is
If it’s expensive, luxurious, rare, or all of the above, then that car is an exotic automobile. These cars are in a league of their own because of how much the car insurance companies would have to pay out in the event of a claim. Another characteristic of exotic cars is that they can increase in value over time rather than decrease. Owners will naturally want car insurance to take this into account. That is precisely what exotic car insurance is for.
Finding Good Exotic Car Insurance
The best exotic car insurers understand not just the vehicles they are insuring but also the economy behind them. They recognize that the car’s value will do anything but decrease, so they offer what is known as “agreed value” car insurance. If worst comes to worst and an exotic car is totaled, then they would be able to pay out an amount that was agreed upon, taking the car’s ever-changing value into account. When looking for good exotic car insurance, it helps to do the following:
Document car with photos – This includes taking pictures of both the interior and exterior of the car. These can go a long way in convincing a car insurer of its agreed value in the insurance underwriting process. Be sure to include photos of the engine and under the hood hardware as well –the more the insurance company sees, the better.
Find an exotic car appraiser – To further assist with agreeing on a value of an exotic car, it always helps to bring it to an appraiser. Appraisers can help establish any modifications that you may have had on the car that affected its value.
Know what an insurance policy like this will require – Exotic car policies tend to have more stipulations than the standard ones. They may be limited to a certain amount of mileage or only one driver –meaning that only the owner is covered when behind the wheel of this car. At the same time, there also may be restrictions on where the car can be driven. A notable example is the five boroughs of New York, wherein exotic cars have no insurance protection as they are driven there.
Keep track of your car’s value – It helps to get your exotic car reappraised every year or so to stay in the loop about how its value may have changed over time. You’ll be able to update your personal car insurance policy accordingly.
What Exotic Car Insurers Look at When Underwriting Coverage
Naturally, car insurers will look at the make and model of your exotic car as it tells them the most about the parts and maintenance required to upkeep such a car. In addition to this, they will also consider the following when it comes to your exotic car:
Car age – The age of your exotic car is tied to its value which the insurance company will need to know and agree with you on. This can also help gauge the health of the car at the time.
Annual mileage – This also ties into how often you drive the car. As previously mentioned, there are coverage limits on how often the exotic car is driven. An example of this is if the exotic car is a showroom vehicle, insurance will cover it traveling between events, while recreational driving is a gray area.
Age of driver – The driver’s age is important in all areas of car insurance because it gauges experience and risk. Car insurance companies typically don’t like seeing young drivers with exotic cars because the risk of an accident is far more than average.
Primary means of transportation – Exotic car insurance tends to go for less if the car in question isn’t your main source of transportation. This is the case for many car collectors or drivers with a classic car –it’s good to have a modern car on hand should anything happen. You can take advantage of a multi-car discount with this perhaps.
Why Car Insurance For Exotic Cars is a Good Idea
Exotic car insurers are better than standard car insurers because they understand the vehicles they are providing coverage for. They understand that these cars are special and go beyond standard car insurance. The best news is that exotic car insurance can be shopped for in a similar way to standard car insurance –gather quotes and know your options through comparing and contrasting.