Supercar Insurance | How much it cost, Types of Insurance

After reviewing four supercars, Tesla Roadster, 1967 Ferrari 275 GTB/4 S NART Spider, Lamborghini Urus, 2018 Mercedes AMG GT-R,  I've got a lot of questions about car insurance. How much it cost to insure a supercar? What factors determine its price?... Well, today I am going to answer these questions.

What is Car Insurance?

Car insurance is literally a contract between a car owner and an insurance provider that clearly says the latter is protecting the car against financial loss in case of an accident, natural calamity or theft. A monthly or yearly payment is made (usually decided by the insurance company). The cost of the insurance depends on various factors, which we will be covered further in this blog. 

One misunderstanding that people often have is that insurance also covers mechanical expenses also, but no, this is not true. No insurance company in this world would cover your mechanical expenses. Even if you never got into an accident or you have enough money to repair your damaged car, you need to insure your car as it is a law in every country. The only decision you can make is what type of insurance you will want your car to have.

Types of Insurance

Liability Coverage

Liability coverage covers only the car and the driver which you have hit, not you and your car. It will compensate the third party for bodily injury and property damage. 

Uninsured or Underinsured Coverage

Uninsured coverage insures you when the at-fault driver does not have liability coverage. Underinsured coverage covers you when the at-fault driver's liability coverage is too low to cover your damage or medical expenses.

Comprehensive Coverage

Comprehensive coverage is a must-have for many car owners out there. It covers your car from damage caused by theft, fire, vandalism, falling objects, animal damage, hurricane, flood, etc. This type of insurance is not required by law but it might be a good option to go for if the value of the car is high.

Collision Coverage 

Collision coverage, as the name itself says, helps to repair or replace your car in case of an accident with another vehicle or with an object (tree, fence, etc). Usually, this insurance type is required if you're leasing your car.

NOTE: There are many other types of insurance but here I'm covering only those which are mostly used or required by law.

Factors that affect the price of Insurance

Make and Model

The amount of insurance you will need to pay depends on the make and model of your car. A Lamborghini Aventador will cost much more to insure than a Toyota Prius. The reason behind that is that it costs more to repair the Aventador than the Prius. In other words, the higher the value of the car, the more it will cost to insure.

Driving History

If your driving history is clean, then expect to pay less for insurance than one that has a lot of tickets and penalties on the list. This is because the insurance company is sure that the one whose driving history is clean, will be having fewer accidents and thus will claim less from the insurance. 

Age and Gender

Age and gender play a crucial role in the amount of insurance you will need to pay. For instance, it will cost more for an 18 years old boy to insure a Ferrari F12 than a 40 years old man who already has two Ferraris and a Lamborghini in his garage. The 18 years old boy will tend to be less careful on the road and might end up in accidents quite often that the 40 years old man. (This might not be the case for every 18 years old boy as they know the road better and they can handle a Lamborghini better than a 40 years old man nowadays, but this is the way insurance company thinks and we cannot do anything about it).

Annual Mileage

The amount of insurance you will need to pay depends heavily on how much you gonna drive the car. The lesser you drive the car, the lesser you will pay for insurance. Also, the day and time of the day the car will be on the road play a crucial part. A Maserati GranCabrio which will be on the road during peak hours on weekdays will cost more than a McLaren 650s which will be on the road only during weekends. That is because accidents are more likely to happen on a busy road than on a desert road.

How much it cost to insure a supercar?

Well, the exact amount is not possible to know as it depends on all the factors mentioned above, but we can still get an approximate amount. The country in which you are insuring the supercar also will have its effect on the price. After some researches, I've found out that the cheapest place is to insure a supercar is none other than the United Arab Emirates. Yes, you read that well. UAE in some ways is considered as one of the most expensive countries to live in but who knew that to insure a supercar there, it costs only 0.5% to 3% of the value of the car. Usually, convertible supercar pays about 3% of the value and is more expensive to insure than a non-convertible supercar. A less known fact about Dubai is that it is more expensive to insure older 4x4 that is to insure a supercar. A 2008 Mitsubishi Pajero insurance will be 10% of the original car value.

Here are some supercars and how much will it cost to insure them:

Bugatti Veyron Super Sport

The Bugatti Veyron Super Sport is a quad-turbo 8.0L W16 producing 1200 hp and 1100 lb-ft of torque. It has a top speed of 253 mph. 0-60 mph happens in just 2.4s. Its price is around $2M (if you go for complete naked carbon fibre body, that will add another whopping $400,000 to the price). To get this beast insured, it will cost you approximately $40,000 per year.

Lamborghini Aventador

A 6.5L V12 powers the 7-speed automated manual transmission and all-wheel drive Lamborghini Aventador which produces 740 hp and 509 lb-ft of torque. A top speed of 217 mph is recorded and it will do 0-60 mph in 2.7s. The Aventador starts at $450,000. It will set you back approximately $10,000 per year to keep it on the road.

Maserati GranCabrio 

The Maserati GranCabrio is powered by a 4.7L V8 making 434 hp and 361 lb-ft of torque. 0-60 mph will happen in about 5.2s and it has a top speed of 183 mph. The GranCabrio price starts at $123,200. Getting your Maserati insured will cost you approximately $4000 per year.

There you go, how much will it cost to insure a supercar. Let me know in the comments section below your thoughts about supercar insurance and if you are willing to get a supercar after taking into consideration all the costs.