Insurance for Exotic Cars, Classic Autos & Specialty Vehicles

Are you looking for exotic car insurance for your exotic auto? Do you own a classic car? Did you purchase a kit car or other specialty vehicle? If so, there are some things you should know and consider while searching.

1. Not all auto insurance companies will insure exotic cars, classic cars or specialty cars. In fact, most do not.
2. There are specialty companies who insure only exotic autos, classic cars and kit cars.
3. There are a few insurance companies which insure not only exotic cars, but also regular vehicles.
4. When you own an exotic car, insurance companies are at greater risk for loss simply due to the possible claim amount in the event that an incident occurs, whether it’s your fault or not.
5. High performance cars also pose issues for insurance companies because claims can occur from driver error, primarily issues with vehicle control.

Whether you have one exotic or a car collection including exotics and classic cars, it’s important you carry the right coverage for you and your vehicles. If an incident happens, you should have peace of mind in that your vehicle is covered and that you personally are not at risk.

This means you need to carry insurance coverage limits which are appropriate to your particular situation. How? Let’s start with your liability coverage. This covers you for claims made by third parties for injuries to individuals or other vehicles. Most states require a minimum of 25/50/25 coverage. This means you have $25,000 in coverage for any one person you injure, $50,000 for any one incident and $25,000 for physical damage to property. When you break it down like this, you can see that state minimum limits are not much at all, especially considering medical costs and average vehicle values these days. What you, as the insured, need to consider is the amount of exposure you have in the event of a claim. If you are a high net worth individual, then you can bet that the person you hit will hire an attorney who will not only eat up your insurance limits, but also come after your personal fortune. Because of this, it’s imperative that you carry higher limits of coverage and even consider a personal umbrella policy. Your insurance agent should help you determine what limits you should carry.

You also need to carry comprehensive and collision coverage. This is what insures your vehicle. How much coverage you get for your exotic or classic car is usually determined by your insurance company, but many insurance companies are now allowing “stated amount” coverage due to the varying values for exotic and classic cars. What does this mean for you? Simply put, you get to put a value on your car and the insurance company will insure it up to the amount you provide them. In the event of a total loss, they will pay you the stated amount. So if you got a good deal on your car, make sure you insure it for what it would cost to buy another one. If you made modifications to your car, take those into consideration as well. Your premium for this coverage will be based on the amount you provide, but, in the grand scheme of things, it’s better you go with a higher amount and pay a little more in premium.

Aside from the above, the next most important coverage for you to carry is Uninsured or Underinsured Motorist coverage. As stated, state minimum limits are very low ($25,000 in property damage in most states). If someone hits your expensive vehicle and only has minimum limits, you will end up with a nightmare on your hands. For this reason, it’s better you carry adequate UM/UIM coverage which will allow you insurance company to step in and take care of the damage above and beyond what the other person’s insurance company pays.

Personal Injury Protection coverage is also nice to have if you’re going with everything above. This coverage, often referred to as PIP, is usually a “no-fault” coverage protecting you against medical expenses in the event of an incident, whether it’s your fault or not.

Depending on the state that you reside in, the info above can vary. However, as the owner of an exotic auto or classic vehicle, it’s important you know the basics so you can make an educated decision on your coverage.

Another item to note is that the cost of insuring an exotic or classic auto is probably much less than you think. It’s all about matching you up with the right insurance company for your situation.