When you buy an expensive car, the insurance coverage will also be expensive. On average, it would cost you approximately $5,235 for a six-month policy. However, the actual cost would vary significantly based on the types of insurance and the insurer. It is quite difficult to find insurance for a Ferrari due to the nature of this car.
But drivers of this vehicle should be prepared to pay more for auto insurance. In fact, the cost of insurance can be ten times higher in comparison to standard auto insurance. If you want to find out what kind of coverage you need and their costs, visit https://www.surex.com/Insurance/auto-car/edmonton.
What Are The Insurance Rates For Ferrari?
If you are planning to buy a luxury vehicle like new Ferrari, your monthly auto insurance rates may be high. Auto-insurance for premium cars is way costlier than insurance for economy cars. So before you invest in a Ferrari, make sure you are aware of the amount you will need to pay as insurance.
Although the average monthly insurance cost stands at $887, the figure can go up or down depending on your circumstances. For instance, your state is a critical factor that impacts the average car insurance rates. So the rate of auto insurance for Ferrari will change from one individual to another. Additionally, the kind of Ferrari model you are going for can also impact the rates of the insurance.
The Cause Behind The Difference In The Rate
There are a plethora of factors that impact the rates of auto insurance. Moreover, every insurance company has its own way of calculating premiums. This causes the insurance rates to differ drastically from one insurer to another, even if you are driving the same vehicle model.
The model year and the condition of the Ferrari are two factors that significantly impact the insurance rate you will avail. The insurance rate for new models is higher as opposed to when you buy a used Ferrari. This is because closing a repair and replace claim for a new Ferrari will cost the insurance company more than they used, the older model. Therefore, to reduce the losses on their side, the insurance company charges higher annual quotes for the new Ferrari.
New Ferrari is equipped with powerful and advanced suspensions, engines, body shells, and other parts. These are very expensive in comparison to what standard vehicles come with. Additionally, this luxurious vehicle touts an all-leather interior accompanied by a high-tech control system. So basically, none of the elements are cheap.
On the other hand, older Ferraris are reckoned to be collector’s items by the insurance company. If you own one of the older models, then you should consider investing in standard auto insurance or exotic and luxury auto insurance. However, consider the eligibility criteria for such insurance policies. Typically classic auto insurance policies have annual mileage restrictions. Therefore, if you plan to drive the vehicle regularly, this might not be the right auto plan for you.
Moreover, there are some insurance policies that only cover some activities. For instance, you will get coverage for driving your old Ferrari to a car show or event that is sponsored by Ferrari Club. So when buying a classic insurance policy, carefully assess the requirements. Since there is a low mileage requirement, you can expect to get cheaper rates with standard insurance.
The Need For Liability Insurance For A Ferrari
If you want to drive your Ferrari in Canada, then you will have to get liability insurance. It pays for the damages that you have caused to another individual or property in the event of a car crash. The minimum civil liability insurance coverage is $200,000, but you can choose to increase this amount. It is recommended to keep this amount higher because you will be better protected if you end up hurting someone when driving.
In some cases, a car crash can even lead to a lawsuit, and $50,000 will not be able to cover both accident damage and the amount you need to fight the lawsuit. When buying a Ferrari, make sure that you comprehensively review each safety feature and record the model. Choose a model that is equipped with important and advanced safety features. This is because sports cars have a 67% higher fatality rate than other vehicles.
Why Should You Have Collision And Comprehensive Coverage For Your Ferrari?
To fully protect your Ferrari, you should include collision and comprehensive insurance in your auto insurance policy. The collision insurance takes care of the repairs that the luxury card needs after being involved in an accident in motion. For example, you hit another car, pole, or tree.
On the other hand, comprehensive insurance includes repairs when your vehicle was in a stationary position. You get coverage for theft, vandalism, weather damage, or any other act of nature.
The repair works in Ferrari can burn a hole in your pocket. Moreover, luxurious cars like this are more likely to be targeted by criminals. Even if you live in a safe area with no theft and are not vulnerable to extreme weather conditions, you should still consider investing in both comprehensive and collision insurance.
Although this is likely to increase the overall insurance rate, there are ways you can control the price. By raising the deductibles on these insurance policies, you may be able to lower the overall monthly rates.
Your Driving Records Impact The Insurance Rates
Your driving records significantly influence your auto insurance rate, irrespective of the vehicle you are driving. If you have a clean driving record with no speeding, you are likely to pay less in terms of insurance coverage than someone who has a bad driving record. High-performance vehicles like Ferraris reach high speed faster than other vehicles. So insurance companies consider that this type of vehicle is not driven safely.
Conclusion
Surprisingly, every insurance company has a slightly different way of calculating its insurance coverage rate. Eventually, the amount you will pay depends on many factors that include the state you live in, the Ferrari model, your driving record, additional coverage, and many more.
