You might need special car insurance if you own an exotic, luxury, or performance car. Exotic cars are high-end vehicles that are rarer and more expensive than a typical car. Makes like Lamborghini, Ferrari, Lexus, and BMW might all be considered exotic or luxury cars despite their price differences.
Depending on your exotic car, it might be more difficult to insure. The high costs of specialized repairs, plus the risk of theft, means that car insurance rates will be higher for an exotic vehicle — and some top car insurance companies may not cover vehicles worth more than a specific amount.
What insurance do you need for an exotic car?
Exotic car insurance works just like any car insurance — it protects you from financial risk after your car is totaled, stolen, or you injure another person or damage their property in a car accident.
But an exotic car’s high value means that a typical full-coverage policy won’t be enough to fully protect it.
If you own an exotic or luxury car, you should have comprehensive and collision coverage, plus guaranteed value coverage or new car replacement, and gap insurance if you’ve leased the car or financed it with a loan.
Comprehensive coverage: Sometimes called “everything but collision” coverage, comprehensive insurance covers theft and damage caused by animals, weather, falling objects, and more.
Collision coverage: Covers damage to your car that’s caused when you collide with another vehicle or object. If you’re responsible for an accident, collision coverage lets you avoid paying for repairs out of pocket.
Guaranteed value coverage: Also called “agreed value coverage,” this protection pays you an agreed-upon amount after your luxury car is damaged, based on its original price, possible depreciation, and cost of repairs.
New car replacement: Like guaranteed value coverage, new car replacement insurance lets you avoid depreciation by covering the cost to replace your exotic car with one that’s the same model.
Gap insurance: If you bought your exotic or luxury car with a loan (or if you’re leasing it), gap insurance pays off the rest of your loan after a crash where you’re only covered for the actual cash value of your car.
How insurance companies define exotic, luxury, and performance cars
There’s no one factor that defines an exotic, luxury, or performance car for an insurance company. Usually, exotic cars are less common on the roads and are more expensive compared to more familiar model cars. Many of the following brands are considered exotic or performance vehicles:
While there’s no one element that sets exotic cars apart from more standard models, insurance companies treat exotic cars differently because they’re more likely to be stolen, have specialized features that are expensive to repair or replace, and are more prone to costly damage after an accident.
How much does exotic car insurance cost?
The exact cost of insuring a car that’s considered an exotic or luxury model depends on your vehicle — but exotic car insurance is always more expensive than the cost of coverage for a comparable standard model.
We compared the cost of car insurance for four midsize cars and found that insurance premiums went up alongside the car’s retail price, or MSRP. Exotic and luxury cars were about $800 to $3,000 more expensive per year than non-exotic models, depending on the car.
Monthly insurance rate
Annual insurance rate
What factors affect exotic car insurance rates?
The cost of exotic car insurance depends on factors specific to both the vehicle and the driver.
For example, insurance for an exotic car will be more expensive if that type of car is stolen more than average. Insurance rates for luxury cars also depends on:
The market value of a new version of your car
The cost of replacing the car’s unique technology
Custom work that’s been done to the vehicle
As with non-exotic car types, the cost of insurance also depends on the driver. Your rates could be different from another driver of a luxury car (even the same model) depending on where you live, your credit score, age, and your driving history.
How to get exotic car insurance
It’s easier to get luxury car insurance quotes for some models than for others. You can shop for insurance for more common exotic cars just like you would any other vehicle. After you figure out how much insurance you need, you should:
Compare rates using an independent broker or manually
Choose the policy with the best rates, coverage, and from the company with the best customer service
Finalize your new policy and cancel your old one
For rarer and more expensive models — like Lamborghinis, Rolls Royces, Ferraris, and so on — you will likely have to get coverage from an exotic car insurance company that specializes in high-end models. Companies known for insuring exotic and collectible car models include:
AIG Private Client
Privilege Underwriters Reciprocal Exchange (PURE)
Best exotic car insurance: AIG
SAIG is the best company for drivers of exotic and luxury cars and has a range of coverage offerings, including:
Up to $100 million of liability coverage
Agreed value coverage in case of a total loss
New vehicle replacement for cars 3 years old or younger
Cash settlement payout for expensive claims
Extra coverage in case your exotic car appreciates in value
Also, AIG receives fewer complaints from its policyholders compared to other insurance companies. Plus, high-net worth drivers can insure their homes, boats, and horses with AIG, too.
How to get cheaper exotic car insurance
The best way to get cheaper car insurance for exotic vehicles is by comparing quotes from more than one company before picking a policy.
But given the cost of most luxury vehicles, it’s even more important to be sure that the companies with the cheapest rates still have great coverage.
Sometimes companies that specialize in exotic car insurance don’t offer discounts, or have very few ways that drivers can save.
But you might be able to get a discount on insurance for your performance car by bundling another policy — like your insurance for your home or yacht — with your car insurance.
Another way to get cheaper exotic car insurance is by letting your insurance company know if you have security systems that make it less likely your car would be stolen. You may also earn a discount if your car is garaged in a secure location, you live in a gated community, or if your car has sophisticated anti-theft technology.