What Counts as an Exotic or Luxury Car for Insurance Purposes?

Purchasing a dream car, whether old or a sports car, comes with a price tag. That higher cost usually extends to your auto insurance, too. You’ll pay more for a vehicle that is worth more. That’s because it costs more for the insurer to pay you if you need to file a claim.  


Many insurers offer a specialized plan for specialty cars. Exotic, or luxury car insurance can provide protection for this highly valued vehicle. Do you need it? 


What Is an Exotic Vehicle? 


Exotic or luxury vehicles tend to have a higher price tag to purchase them. This can be due to a number of factors. For example, if you have a vehicle with high-end technology built in, that could make it a luxury vehicle. Cars that are rare for any reason can also fit this definition. Old or classic cars often fit into this category. Here are a few things that typically lead to the need for luxury auto insurance policies. 

• Vehicles that require experience to handle them properly are exotics. They may hit higher speeds or have unique driving features built into them. 

• The value of the vehicle is high, generally over $100,000. Some vehicles have a value over $500,000. This may be a limited edition vehicle. It may also be an antique car. The value to replace the vehicle defines this component. 

• Vehicles with specialized parts and customizations tend to be exotic cars, too. It is difficult, or impossible, to repair or replace these vehicles. Parts may be hard to find. 

• Parts for repairs are no longer available. Vehicles that have expensive features from out-of-business or hard-to-find manufacturers qualify here. 

• Body work or repairs done by specialized and limited providers can also make a vehicle exotic. It may be impossible to find a repair shop to do the work to match previous standards. 

Luxury vehicles generally need specialized insurance policies. Names like Aston Martin, Maserati, Lamborghini and McLaren, among many others, have a high value. These are only a handful of the wide variety available. Many times, they have built-in customizations. This may be a car you helped design. It could be one you helped customize with paint work.  


No matter what the specifications are, these vehicles need specialized auto insurance. This coverage helps protect your investment in the car. Without it, it could be impossible to repair or replace the vehicle if a sudden accident or theft occurred.