XcYZ
05-22-2008, 04:54 PM
Insuring a Sports Car? Three Things You Need to Know
When it comes to insuring a performance car or sports car, especially one that you only drive on the track, it's important to be an educated shopper. Unlike the car you drive to and from work every day, your sports car has to be pampered in order to meet insurance requirements (stored in a garage, limited usage), and your driving record usually has to be spotless in order to get any kind of coverage - even cheap insurance (http://www.insurancespecialists.com/) has these standards when it comes to performance vehicles.
When you begin your shopping, there are three key factors that you need to ask about: agreed value, anti-theft devices, and roll bars. Let's discuss them in order.
Agreed Value is the method of determining how much coverage you will have. With a regular car, insurance companies cover actual cash value, which is the cost of the car minus any depreciation. Because performance cars appreciate in value, and because they are often modified, or heavily restored, actual cash value is not sufficient. Agreed value takes your work and any parts you've added into consideration, allowing you and the insurance agent to literally agree on how much your car is worth. Most specialty car insurance companies require itemized lists of modifications and photographs of the car, as well as copies of any special licenses you have, but some may require appraisals as well. Don't be afraid of this. A car appraisal isn't that expensive, and it will ensure that you are given adequate coverage. Remember that specialty insurance is usually far less expensive than standard insurance, as well - the fact that you have a minimal deductible and are only paying a couple of hundred dollars a year should offset that appraisal fee.
Anti-theft Devices include everything from engine-kill switches to tracking devices like LoJack, and, as long as they're installed by professional mechanics, insurance companies generally approve of them. While specialty insurers do not often give discounts for anti-theft protection (their rates are pretty low already), they do add them to the "pro" column when considering a car for coverage, and even though your hot-rod is supposed to be either garaged or nearby you, things happen.
Roll Bars and Roll Cages are trickier. Many specialty insurers won't cover vehicles that have had roll protection added aftermarket. Others require that they be permanently attached in a fixed position. In addition, as an owner/driver you have to meet the requirements for the tracks where you race and the clubs to which you belong, and those sometimes differ from what insurers require. Certainly functional roll bars and roll cages offer needed protection when driving, while those installed merely for show do not. The answer, then, is to make "do you cover cars with added roll bars" a standard question when you are shopping for performance car insurance. Note also that companies like Hagerty's - a big name in specialty auto insurance - specialize in exotics more than actual race cars. There are other companies that concentrate their business on modified cars, muscle cars, and race cars, and those are the businesses you should be seeking out.
Insuring a performance vehicle doesn't have to be a daunting experience. Just remember to ask questions if you don't understand something, and get multiple car insurance quotes (http://www.insurancespecialists.com/auto-insurance/) before settling on one company.
When it comes to insuring a performance car or sports car, especially one that you only drive on the track, it's important to be an educated shopper. Unlike the car you drive to and from work every day, your sports car has to be pampered in order to meet insurance requirements (stored in a garage, limited usage), and your driving record usually has to be spotless in order to get any kind of coverage - even cheap insurance (http://www.insurancespecialists.com/) has these standards when it comes to performance vehicles.
When you begin your shopping, there are three key factors that you need to ask about: agreed value, anti-theft devices, and roll bars. Let's discuss them in order.
Agreed Value is the method of determining how much coverage you will have. With a regular car, insurance companies cover actual cash value, which is the cost of the car minus any depreciation. Because performance cars appreciate in value, and because they are often modified, or heavily restored, actual cash value is not sufficient. Agreed value takes your work and any parts you've added into consideration, allowing you and the insurance agent to literally agree on how much your car is worth. Most specialty car insurance companies require itemized lists of modifications and photographs of the car, as well as copies of any special licenses you have, but some may require appraisals as well. Don't be afraid of this. A car appraisal isn't that expensive, and it will ensure that you are given adequate coverage. Remember that specialty insurance is usually far less expensive than standard insurance, as well - the fact that you have a minimal deductible and are only paying a couple of hundred dollars a year should offset that appraisal fee.
Anti-theft Devices include everything from engine-kill switches to tracking devices like LoJack, and, as long as they're installed by professional mechanics, insurance companies generally approve of them. While specialty insurers do not often give discounts for anti-theft protection (their rates are pretty low already), they do add them to the "pro" column when considering a car for coverage, and even though your hot-rod is supposed to be either garaged or nearby you, things happen.
Roll Bars and Roll Cages are trickier. Many specialty insurers won't cover vehicles that have had roll protection added aftermarket. Others require that they be permanently attached in a fixed position. In addition, as an owner/driver you have to meet the requirements for the tracks where you race and the clubs to which you belong, and those sometimes differ from what insurers require. Certainly functional roll bars and roll cages offer needed protection when driving, while those installed merely for show do not. The answer, then, is to make "do you cover cars with added roll bars" a standard question when you are shopping for performance car insurance. Note also that companies like Hagerty's - a big name in specialty auto insurance - specialize in exotics more than actual race cars. There are other companies that concentrate their business on modified cars, muscle cars, and race cars, and those are the businesses you should be seeking out.
Insuring a performance vehicle doesn't have to be a daunting experience. Just remember to ask questions if you don't understand something, and get multiple car insurance quotes (http://www.insurancespecialists.com/auto-insurance/) before settling on one company.