by Daigle & Travers, Darien, Connecticut (203) 655-6974
The iconic Ferrari vehicle symbolizes superior engineering, power and speed. If you own one of these luxury Italian sports cars, then having the right insurance coverage is a must!
Sports and exotic cars come with higher pricing than other luxury vehicles or even classic cars. In the case of exotic cars, this is because there are usually very few models or the car is custom-made specially for its owner. Italian sports cars, like the Ferrari or Lamborghini, offer high performance that needs the right insurance policy to appropriately protect the investment.
Ferrari Car Insurance Cost
Parts for Ferrari cars can be expensive and difficult to find in certain areas. Combine parts with risk and high replacement cost, and you’ll find that Ferrari insurance prices are higher than typical sports car coverage.
For brand new Ferrari vehicles, the average annual cost can run approximately $10,000 or more, while an older Ferrari may cost less to insure since it can be classified as a collector car.
Your agent will help you assess your risk and needs so that you can find the right policy plan to suit your individual needs.
Why is Agreed Value for Ferrari Auto Insurance Quotes So Important?
When getting an auto policy, insurance companies typically use actual cash value as the basis of the coverage.
When an accident or damage happens with an actual cash value policy, the insurance company decides what your collector car is worth. Actual cash value generally means the value of your vehicle at the time of the loss, taking into consideration its condition as well as depreciation. The insurance company may use a number of different methodologies to determine what it believes to be the actual cash value for the vehicle, and you may disagree with the insurance company’s methodology and/or valuation.
Many collector car insurance policies offer coverage with stated value as if this coverage is the same as the “agreed value.” However, stated value and agreed value are not the same.
Stated value policies will usually pay either the stated value or the actual cash value, whichever one is less. The purpose of stated value is to help determine the total premium you will pay for the policy.
An agreed value policy is a better choice when it comes to protecting your vehicle. If your Ferrari is in a wreck or stolen, an agreed value policy will ensure you receive the amount that you and the insurance company agree to when you purchased the policy.
What is the eligibility of an older collectible or exotic car like a Ferrari Enzo or 458 Spider?
Most exotic cars qualify straight from the showroom floor. Some cars may require some time on the market to be categorized as a collectible. Another factor could be their lack of mainstream availability, so that they are highly sought after.
How many pictures do I need to send with an application for Ferrari insurance quotes?
When you are seeking collector car or Ferrari insurance quotes, we will usually need you to send five photos, including a photo of each side of the vehicle, your garage and a complete shot of the car. Additional photographs may be required depending on the circumstances.
Ferrari Auto Insurance FAQs
What you need to know: Actual Cash Value
Standard auto policies typically provide actual cash value coverage. When an accident or damage happens, the insurance claims adjuster decides the worth of the Ferrari or other luxury sports car and the claims settlement amount.
What you need to know: Stated Value
Unfortunately, there are many misunderstandings about the meaning of stated value policies. Many insurance agencies use the terms stated value and agreed amount interchangeably for Ferrari insurance quotes and policies. However, this usage is incorrect.
Stated amount means the insurer pays the lower amount of either
- Repair costs or
- the stated policy amount or
- the vehicle’s actual cash value
For these policies, stated amount only helps determine how much premium to charge for the policy.
What stated value doesn’t do is guarantee a claim payment to match the Ferrari automobile value at the time of the loss.
By using actual cash value, the claims representative can settle the claim for a lower amount than the stated value on the policy. Unfortunately, some insurance agencies are not aware of that potential outcome.
What you need to know: Agreed Insurance Amount
If your Ferrari or other collector car is totaled or involved in a theft, an insurance policy with agreed value will cover the loss up to the agreed-upon amount stated in the policy.
These policies do not have actual cash value stated anywhere in the coverage. In the event of a loss, the insurer will pay the repair costs or an agreed amount as set out by the policy documents.
Review the policy terms with your personal insurance agent prior to policy issuance.
You want to verify that the insurance company uses an accurate value for the Ferrari when they issue the policy. If that value changes at any time, you also want the option to be able to change the agreed value as well.
What you need to know: Claims
A claim can happen at any time. Depending on the severity of the accident, your Ferrari may be in need of repair.
Fortunately, when a claim occurs, most insurers allow you to choose the repair shop where you will take your Ferrari or other collectible car.
Another thing to take into consideration with claims is making sure your insurance company will pay more for a repair shop to use original parts as opposed to aftermarket parts.
What you need to know: Getting your policy
In order to buy a collector automobile policy, many insurance companies mandate that you have another vehicle to use for everyday driving.
You also will typically need the policy limits of your everyday vehicle coverage to match the coverage limits of your Ferrari sports car insurance policy. These should be the same for both liability and uninsured motorists.
For medical payments, the limits may possibly vary, depending on the insurance company.
Some individuals may advise you not to obtain a separate collector car policy, on the purported grounds that your auto policy or umbrella policy will not allow it. This information is generally false, as typically a standalone collector car policy can be paired with your regular automobile policy and/or your umbrella policy, subject to certain conditions. Please contact our knowledgeable agents if you would like to discuss your options for a collector car policy.
Other Important info about Collector Car Insurance Requirements:
- When you discover a program offering agreed value terms for physical damage coverage, compare it with the extra Ferrari insurance cost.
- In addition to the cars’ “Agreed Value,” a few insurance programs will often allow you to insure custom items you may have added to your vehicle.
- Several programs will restrict you to drive 2,500 miles annually; however, some offer varied mileage plans up to 5,000 miles a year.
- Different physical damage deductibles are also available.
- Some insurance programs will only allow you to drive the car to special events.
- Be sure you read your application carefully.
- Asking your agent about policy restrictions and warranties beforehand will help you find a program suitable for your needs.
- Be sure to get an Agreed Value Ferrari insurance policy through a respectable insurance agent or broker who is familiar with the collectible automobile business.
- It is helpful if your agent has a good relationship with the insurance company underwriters.
- Only a few agents will claim to have authority to assist insurance company settle claims swiftly for your benefit. The best agents are actively involved in the collectible car industry. Some agents participate in various car club events and activities. Check to see if your agent has commitments to car clubs or car manufacturers.
Would you settle for less?
If you find your current insurance agent is unable to offer you a true “Collector Car” insurance policy with an “agreed value” form, it’s time to find a new agent.
Read over your policy very carefully. Spending time comparing all aspects and not just the prices of an insurance policy and making sure it suits your needs will help you find the coverage that will work best for your specific situation.
Here at Daigle & Travers, we can help you find Ferrari insurance coverage for your situation and will recommend policies from exotic and collectible car insurance companies. Give us a call today (203) 655-6974.