What Kind of Insurance Do You Need for a Million-Dollar Car?

Investing a lot of money in a luxury car requires careful consideration.

Will the vehicle retain its value over time? Are other owners satisfied with it? How are the roads in your area? Will you be garaging the vehicle at different times of the year? Doing your due diligence is just common sense.

Part of that process is evaluating how much money the car is going to cost year to year. Depending on the Bugatti, it could cost you $30,000 to $42,000 just to replace and rotate the tires every 2,500 miles. Factor in all the maintenance and insurance costs, and your luxury car could easily run you $150,000 annually.

The most expensive cars in the world

According to digitaltrends.com, the most expensive cars are:

• Bugatti La Voiture Noire $19 million

• Rolls-Royce Sweptail $13 million

• Bugatti Centodieci $8.9 million

• Mercedes-Benz Maybach Exelero $8 million

• Bugatti Divo $5.9 million

• Lamborghini Veneno $4.5 million

• Lamborghini Sian $3.6 million

• W Motors Lykan Hypersport $3.4 million

• Limited Edition Bugatti Veyron $3.4 million

• Ferrari Pininfarina Sergio $3 million

• Bugatti Chiron $2.9 million

• Koenigsegg Jesko $2.8 million

• LaFerrari FXX K $2.7 million

• Aston Martin Valkyrie $2.6 million

• Pagani Huayra BC $2.6 million

• Mercedes-AMG One $2.5 million

• Ferrari F60 America $2.5 million

• Aston Martin Vulcan $2.3 million

• McLaren Speedtail $2.2 million

• Rimac C_Two $2 million

What makes these cars so prized is their rarity. The Sweptail reportedly took a team of 40 workers four years to complete. The Koenigsegg Trevita (a previous year's list) is the first street-legal model and happens to be coated in diamonds. The Lykan was featured in the Fast and Furious film and is used by Abu Dhabi’s police force, most notably as an expensive publicity stunt. The McLaren Speedtail can reach a top speed of 250 mph and went up against an F35 Fighter Jet (Speedtail lost – but still an impressive run).

Whether you fall in love with a car for its stellar craftsmanship and design or because it’s a pleasure to drive, you should find the cost of insurance to be somewhat reasonable in contrast with the price tag of the car. A handful of Ferrari owners report on Quora that insurance with $1,000 deductibles can cost $2,000 to $3,000 dollars a month.

When it comes to auto insurance

High-end car insurance is similar to standard auto insurance with two crucial differences:

1. Most providers don’t insure high-end vehicles; you’ll need your insurance professional to select a specialty insurer.

2. Your insurance will most likely be based on agreed value (AV), much like insurers do for works of art.

Most cars lose a lot of value in the first year of purchase and continue to devalue over the years. That might even be true for some of the more common exotic cars. Supercars and collector cars are mostly shielded from the effects of depreciation and can actually appreciate over time.

Agreed value does away with depreciation. With agreed value, the amount of coverage is set at your discretion or as determined by a professional appraiser. In the case of a recent acquisition, it will be equal to the vehicle sales price.

High-end car insurance will include all the coverage you’d expect, namely:

• Collision and comprehensive coverage for repairing your vehicle when damaged

• Bodily injury and property damage liability to cover third party injuries and damages

• Personal injury protection to cover medical care for the driver and passengers

• Coverage for hit and run accidents

To speak with an insurance professional at V.F. McNeil Insurance today, contact us at (203) 481-2684 or request an appointment online. Our insurance professionals can review all of your personal insurance needs, including your vehicles, and provide you with solutions for getting auto insurance in Connecticut for luxury and exotic vehicles.