Ferrari is an iconic brand that has built some of the most exotic cars on the planet. Back in the 1960's it only built 39 250 GTOs. This first round of Ferrari productions were slated to be sold to very select key buyers for a grand total of $18,000. That was a lot of money back in the early 60s.
Today, these handful of Ferraris’ are easily the most expensive automobiles on the planet. That same 250 GTO will likely sell for over $50 million at a Bonham’s auction in California in 2019. In 2014, an individual purchased a red 250 GTO for a $38 million. It set the record for a vintage car. Another one from the same series is rumored to have sold for $48 million, shattering the new record by millions.
With so many millions on table, these cars are priceless and need secure coverage with very high limits. According to the popular https:/youngamericainsurance.net the cost of insuring a single vintage Ferrari GTO can cost over $50,000 per month. That's more than most people make in a year.
AIG Is A Popular Insurer For Exotic Vehicles
AIG has a private client group that is like an exclusive club for buying these incredibly expensive Ferrari's. Some have been raced by famous celebrities, which only increases their value even higher. The top major executive at AIG says that they insure 18 of these original Ferrari's. Since most don't see a lot of road time, it's somewhat of a safe bet to the insurer. After all, how many people are going to take a $50 million Ferrari out to Wal-Mart to buy groceries. Most of these cars sit pampered in expensive garages.
There are some hardcore collectors out there who pay annual fees in the tens of thousands to AIG for insuring their expensive cars. The premiums can add up to more than $600,000 across the board each year and more. Most of the clients who invest in these plans are those who own multiple homes, have over $25 million in fine art and jewelry and an existing collection of vintage cars already.
Most Vintage Ferrari Owners Want Total Anonymity
About 650 of AIG’s clients meet this portfolio level, to the point where the aforementioned company won’t reveal the names or details about them. They are usually referred to as celebrities or major business leaders.
Collectible cars come with a price, of course. If you are planning on driving your super expensive car, then you will want to insure it with a wholly comprehensive insurance company like AIG. Competitors Pure or Chubb will also completely cover your luxury vehicle, for a hefty price. These are the best carriers to go with if an accident ever reduces the value of your vehicle.
Ferrari's Drop In Value After Wrecks
Some Ferraris drop from over $30 million to less than $8 million in value after an accident, depending on the severity of it. When this happens, AIG will write a check, that can be $2 million or more, to help cover comprehensive charges. Unfortunately, these accidents do happen, even to vintage Ferrari's.
There was a case of an owner who was driving his recently purchased silver Ferrari GT Short- Wheelbase Ferrari Berlinetta. He drove on a rough road during a rally event. Being located in the western portion of the United States, the environment is prone to a lot of dust and dirt. Unfortunately, another racer sprayed gravel and rocks all over the silver Ferrari, causing a lot of external and aesthetic damage.
The owner recalls his coupe looking like it had a case of the measles. As he had spent tens of thousands of dollars on it, he was eager to file a claim. He insisted that the insurance company and the damage-doer have the entire car repainted to fix all the damage that was done. AIG received the claim for $40,000 to cover the cost of repainting. They were able to restore it to its full worth after accepting this claim. That is one expensive paint job.
A similar story is recounted of a Ferrari owner who had an accident in his Ferrari Enzo. There were only 400 Ferrari Enzo's ever made on record, and they were manufactured in two short years between 2002 and 2004. While it is fortunate that nobody was hurt in the accident, the Enzo suffered a shattered fiberglass chassis. AIG devalued the car at $950,000, and was willing to write a check of that amount to the client.
However, the client did not want the money. He would rather AIG pay to repair the broken parts of the car. AIG then contacted Ferrari directly to see what the cost of this custom repair would be. With shipping the car to Italy, ordering the parts, and rebuilding that part of the car, the total come out to about $600,000.
While that is less than the amount AIG was willing to pay the client, they found it more difficult to go through the shipping and repair process. However, as that is what the client wanted, they were willing to go through with it. AIG’s goal is to do whatever it takes to make the client whole, helping him fully restore the car he loves the most.
While it might be difficult to write big checks and get in touch with rare dealers, AIG is more than happy to perform this task. They are avid about taking on even more collectors and expanding their high net worth business. Their goal is to insure every single Ferrari GTO and dominate the market. For the lucky few vintage Ferrari owners, while insuring them is expensive, it is an investment well worth it.
I hope you enjoyed this blog post about the high insurance sorts of insuring a Ferrari and other exotic luxury sports cars.
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