The definition of an exotic car varies by person. However, most exotic cars share a few common features. For example, exotic cars tend to be expensive, high-performance, rare, and excellently constructed. Exotic cars also tend to attract high insurance rates for reasons listed below.
Most exotic cars are expensive. Some cost hundreds of thousands of dollars to purchase. The appraised value of an exotic car can be higher than its sticker price. The discrepancy between the two values can be even higher for a rare exotic car. Many people also modify their exotic cars, which increases their values even more. The high value usually means higher insurance rates since you expect the insurance company to compensate you in case of a total loss of the car.
High Cost of Ownership
Exotic cars are not just expensive to purchase — many of them are also expensive to maintain. For example, the repair and service needs of some of these cars require specialized tools and expertise. Many of them have rare and expensive parts. The insurance cost inevitably goes up since you want to rely on your auto insurance to get the car fixed in case of damage.
Most cars lose their value with time. In fact, most cars begin depreciating from the moment you drive them off the dealer's lot. The situation is different for many exotic cars; some of them actually appreciate in value. A rare car may become even more expensive with time as similar makes and models fall out of use. You have to increase your coverage rates to cover the appreciating value of your exotic car.
Some exotic cars are thief magnets due to the premium prices they fetch on the market. Many of them are also stolen for their parts, which are also expensive. If you have such a car, then your insurance rates may go up to protect the insurance company from the high risk of theft.
Not everything about exotic cars works to your disadvantage when it comes to insurance rates. For example, many people don't use their exotic cars for daily driving. These cars spend most of their time parked. In fact, some auto insurance companies have a maximum mileage they can allow on an exotic car per year. The minimal mileage helps to lower the coverage rates.
Despite the above reasons, you shouldn't necessarily pay through the roof to buy auto insurance for your exotic car. Talk to your insurance agent to learn more about your auto insurance.