Insuring an exotic or sports vehicle?

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When it comes to insuring an exotic or sports car, it’s not always as straightforward as insuring a run-of-the-mill vehicle. It’s often more expensive; you might need special coverages, and not every insurance provider will be a good fit. 

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These vehicles are sure to turn heads when you’re driving down the road, but you don’t have to lose yours figuring out how to afford the insurance. Here’s what you need to know when it comes to insuring both exotic and sports vehicles. 

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What makes exotic and sports vehicles unique to insure? 

Exotic cars (think Audis, BMWs, and Rolls Royces) can cost anywhere from two to three times the amount of a standard vehicle, and are often made using premium materials and craftsmanship. The same goes for sports cars like Ferraris, Maseratis, and Porches. This attention to detail and high cost of replacement parts can drive up the cost of insurance for exotic and sports vehicles.  A n exotic or sports vehicle is often available in limited quantities or not available to a wide market, making them more prestigious to own. They often have a unique and distinct look, making them attractive to buyers and admirers alike, but ultimately, also makes parts harder to come by. 

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Additionally, these types of vehicles can often reach speeds of up to 300 km/h, making them a bigger risk for attaining a speeding ticket or being involved in a serious collision. They’ve often been modified for better speed and efficiency, making them more powerful than your regular car.

Higher premiums

Because an exotic or sports vehicle costs more, is made with premium components, and is more apt to reach higher speeds, you’re likely to encounter higher insurance premiums versus a regular vehicle. 

Additionally, they often require more in terms of maintenance than a regular car, and that maintenance must be performed by a specialized service provider. Exotic or sports vehicles are also more likely to attract theft due to their increased value . 

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While you’ll need the basic insurance required by your province or territory (usually comprehensive and collision ), you may want to consider additional coverages, such as: coverage for repairs, including original parts; coverage for choosing a body shop that can do the repairs; and coverage for the cost of a rental car if you temporarily cannot drive your vehicle.

Despite the higher insurance premiums associated with exotic or sports vehicles, there are some steps owners can take to ensure they’re getting the best rate possible. 

Saving money on auto insurance

One of the easiest ways to reduce the cost of your monthly premiums on an exotic or sports vehicle is to raise the deductible. You’ll be paying more when it comes time to make a claim, but the savings are usually offset by the lower monthly premiums. Additionally, you can save if you’re able to pay for your policy in one annual lump sum rather than monthly installments.

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Consider a limited use policy for your exotic or sports car. This type of policy is often used for secondary vehicles or those that aren’t driven on a daily basis. If you’re only planning to drive the vehicle on weekends, holidays, or special occasions, you will more than likely qualify for decreased rates. Because you’re only occasionally hitting the roads, your chances of becoming involved in a motor vehicle collision decrease, which can add up to lower monthly premiums.

Consider installing an alarm or other anti-theft device, as this may help to lower your premiums if your vehicle is less appealing to would-be car thieves. 

Of course, one of the biggest factors that will influence your premiums besides the actual vehicle is your driving history, so make sure your record is spotless. Drive the speed limit, follow the rules of the road, and practise defensive driving. And finally, don’t forget to compare rates when shopping for exotic or sports vehicle insurance.

LowestRates.ca is a free and independent rate comparison website that allows Canadians to compare rates from 75+ providers for various financial products, such as auto and home insurance, mortgages, and credit cards.