Performance cars, whether they're specially tuned domestic models or elite imports, are generally excluded from the standard insurance policies that mainstream insurers process and issue on a regular basis. For this reason, it is often better to pursue (specialty insurance for your performance vehicle).
It's About the Risk
Auto insurance premiums and coverage options are based on tables of compiled data that compare risk. The more unique your vehicle, the less data there is to compare in order to establish levels of risk. In other words, most insurance companies have tables comparing crash safety, fuel consumption and the likelihood of theft for a Toyota, Lexus, Honda, Subaru, Mazda, or BMW, but if you're driving a Lamborghini or a Jaguar, they will not have the same information to use for data comparison. They'll still insure your vehicle if you press the point, but it will cost you.
Specialty Insurers
In order to be certain your car is adequately insured, and insured at a price you're willing to pay, specialty insurance is your best option. This is especially true when you consider that most performance vehicles are not driven every day, or left in unattended parking lots for long stretches of time. So how do specialty insurers work?
Here's a brief rundown:
Agreed value: Specialty insurers generally use "agreed value" coverage, where you and your insurer work together, sometimes with an appraiser, to come up with a value for your car that takes its age, condition, rarity, original cost, market value and any special performance tuning or modification and aftermarket parts into account.
Legal Coverage: Specialty insurance for performance autos still includes all of the legally required liability and un/underinsured motorist coverage your state may require.
Special features: If you participate in exotic car shows, you may be interested to know that performance car insurance often includes options for coverage that will reimburse you if you miss a show due to a breakdown.
Of course, with the advantages of a specialty policy for your performance car come some disadvantages as well.
These include:
Strict requirements about how and where you store your car. No parking on the street at night. Instead, you must have a locked garage.
Strict guidelines about your driving record: must be clean.
Rules about the age and experience of insured drivers. Generally, you must be at least twenty-five years old, or have at least ten years of licensed driving experience.
Mileage restrictions: Some specialty insurers impose annual mileage limits on performance cars, as well as classics.
Do the caveats associated with specialty(insurance) outweigh the benefits? If you have a truly exotic car, or one that has a lot of performance modifications, it's quite possible that specialty insurers are your only hope. If not, compare the costs with those of a mainstream insurer. You may be surprised to find that specialty policies can be less expensive, or come with lower deductibles.
You drive a special car. Shouldn't you at least consider special insurance?
