By definition, exotic cars are collectible items that are furnished with sophisticated features that set them apart from everyday cars.
Also referred to as supercars, these cars include super high performance cars that require specialized experience to properly handle them, and most of them cost from $100,000 or more.
Some limited editions might even fetch as high as $500,000 to 3,000,000 depending on the brand.
When such a car gets involved in an accident or demands some repairs, only specific tools are used and this means even tasks thought to be simple like changing oil might be a sophisticated process.
When you buy one of these cars, the first thing you think about is to get the right insurance package so your car is covered well just in case you get into situations that might demand expensive repairs.
There are many options for exotic car insurance.
Average insurance costs for exotic car brands
Most exotic brands are viewed as outliers and you will hardly come across facts about exotic car insurance rates online.
The average consumer will most probably be interested in mainstream models, so information about insurance packages designed for supercars is not readily available on the internet.
Quadrant Information Services, in 2016, did a survey that highlighted the average rates paid by luxury and exotic car models and the results showed that different models cost different amounts.
What you should understand is that the overall cost of the vehicle as well as model will count a lot while calculating premiums, so you might want to consult different insurance agencies to see what they have to say about the car you intend to buy.
An example is the Porsche Panamera Turbo S (Executive) which costs $219,850 (MSRP), its annual average insurance quote was hovering at $3,797.
This in contrast with the Audi A8 L W12 that costs $138,000 (MSRP) and an annual insurance rate of $4,640 might make you wonder why the Audi requires more insurance yet its price is lower.
There are many factors put into consideration including brand reliability and issues most likely to occur as well as their costs.
Value determination basics for exotic car insurance
Before you purchase a protection plan, there are terms you should understand that can guide your decisions.
These include actual cash value, agreed value, and replacement cost.
These are the variables that determine the amount the insurer will compensate you after damage.
Agreed value is the amount both the holder and provider agree upon and this concerns the cost of reimbursement when major damage occurs, the car is stole, or is totaled.
Actual cash value is set considering the current market value of the car (MSRP value) and this is used to show the amount the insurer should pay you in the event of total loss or theft.
However, while calculating this value, you have to deduct depreciation.
Although similar to agreed value, replacement cost is only applicable when the car is less than three years since purchase.
Depreciation cost is not factored in while calculating compensation amount.