Sports or Exotic Car Insurance
I must admit when I think about the word exotic I call to mind a picture of a restaurant in a five star hotel in Kauai, Hawaii, surrounded by all the luxury in the world and looking at the most glorious sunset over the Pacific Ocean, sipping on the perfect cocktail while I wait for my tempura seafood medley…now that’s what I call exotic. Exotic cars? That’s another story.

Define, please?
Exotic cars are very fast super sports cars, very rare, very exceptional, very expensive and traffic stoppers indeed. So, we have established that not many people can afford these exotic models, but apart from money you need exceptional and advanced driving skills to handle that powerful engine. We are taking about a class all of its own when we take about these cars, they are also called investment cars by some. Knowing what happens to ordinary cars when it comes to depreciation we realize that these cars will require a specialist insurance product.

A number of insurers in South Africa have now entered this market and the best advice is to make sure that you deal with a specialist when it comes to insuring your exotic car. You are looking for an insurer with extensive knowledge and expertise in this area. This specialist, niche market insurance usually also cover executive, antique or classic cars.

Exotic Car Insurance Policy Benefits
You will expect only the best from your insurance company for your car; here are some of the benefits usually included in comprehensive exotic car cover:

1. You will pay no excess should the claim follow a theft or carjacking provided that an approved tracking device is operational at the time of the event.

2. You will also pay no excess following a claim after an accident or collision, if the car is less than twelve months old and was driven by yourself (the owner.)

3. In the event of a total loss or theft the claim will be settled at retail value (instead of market value.) Should the car be less than twelve months old the claim is settled at replacement cost. Note: this will be subject to the Maximum Level of Indemnity.

4. The sound equipment in the car is covered inclusively to a limit of R10 000 or 2.5% of the car’s value.

5. Lock and keys extension up to R10 000 is included.

6. The cost of importing replacement parts is covered up to a limit of R2 000.

7. Windscreen cover up to R30 000.

8. Liability to third parties – cover up to R10 million per incident. This amount is including legal costs. The amount will be limited should the driver be younger than 27 years old, licensed for less than two years, or if the event took place outside South African borders.

9. Medical costs of up to R100 000 per event.

10. Car hire for 30 days.

11. Top-up cover with a maximum of 10% of the maximum limit of indemnity.

12. SASRIA cover is included.

Please note that each insurance company has their own benefits, compare the different offers before you decide on the cover you are going to accept.

FAIS compliant
When you are ready to accept the insurance cover on your exotic car make sure that the insurer is registered in terms of the Financial Advisory and Intermediary Services Act (FAIS.) You are entitled to ask for a copy of their license. Dealing with a registered company will provide you with the extra protection of the law.

Looking after your car
I doubt if I need to tell you to look after your car, this type of car will hopefully get the treatment it deserves. A tip to enjoy your driving even more – enroll for an advanced driving course; it can save your life and those of many others on the road. Enjoy your exotic car, but do so with the respect this car deserves.