With its rich history as an organization and its unparalleled success in the world of racing, there is simply no disputing the brand’s reputation as one of the most famous and sought-after by auto enthusiasts and collectors.
The Ferrari brand has long been synonymous with prestige, and understandably so. Ownership is looked at as a privilege that belongs to a relatively small fraternity. On top of the cars’ excellent engineering and performance, the scarcity of many Ferrari models is largely responsible for their stature as an instant classic. As recently as 2007, Ferrari had set a production limit of 4,300 cars annually, or roughly 0.0078% of automobiles manufactured worldwide.
These same characteristics are also largely responsible for making Ferrari ownership an aspiration for many successful individuals. Smart shoppers and Ferrari owners know that the cost of Ferrari ownership doesn't stop with the price tag. Other costs include registration, fuel, repairs and maintenance, and of course insurance.
Really, these “hidden” costs are no different than those associated with any automobile, though again, given the exclusivity of the club, everything is inflated for Ferrari owners, to say the least. As with most luxury brands, especially foreign ones, it’s easy to understand why repair parts would cost more. Likewise, with limited options when it comes to professional maintenance, as well as the need for premium fuel for an engine that’s never sought to be known for its fuel efficiency, only make the costs add up more quickly than one might realize.
Attempting to explain, in simple terms, what it costs to insure a Ferrari is next to impossible because there are so many characteristics of a Ferrari distinguishing it from more mainstream automobiles. We’ve already touched briefly on the first factor. Replacement parts and the expertise to restore your automotive trophy back to its previous glory are both relatively scarce, therefore giving the insurer a greater potential liability for which they need to account. Furthermore, the stature of the Ferrari as a status symbol of the excessively rich inevitably increases the likelihood that the car, if left open to such threats, will be the target of burglary, theft or even simple vandalism. With increased likelihood of any of these things happening come higher insurance premiums.
All that being said there are ways in which to minimize the cost of insuring a Ferrari. First and foremost, you should seek to insure your luxurious wheels with a provider who specializes in super-luxury, exotic and otherwise collectible vehicles. By providing you with agents who deal exclusively with issues specific to Ferraris and the like, they will be able to offer you specialized service not available through more widely-known insurance companies. One of these benefits may include discounted rates dependent upon the designated use of the Ferrari.
Though not recommended for any Ferrari owner, if the super-luxury vehicle is deemed to be the owner’s “daily driver” vehicle, one should expect to pay much, much higher premiums. For example, in research for this article, the author sought quotes for insuring identical models of a 2005 Ferrari F430 Berlinetta 2-door Coupe. For a turbocharged version of this roadster with satellite tracking in the case of theft, an Agreed Value provision of $195,000 with an annual mileage allowance of 12,000 miles (a fairly standard measure of daily driving) the quote came back at roughly $6000 annually. For the same vehicle, with the same options except for an annual mileage allowance of 2,500 miles, the quote dropped to approximately $1400 annually.
Belonging to an auto club specifically for Ferrari owners can also provide you with a means of lowering your insurance costs. Because they can essentially buy insurance coverage in bulk, auto clubs can oftentimes pass some of those savings onto their members. Club membership may further benefit the Ferrari owner due to some insurance companies equate club members with safe driving habits and taking excellent care of their prized vehicles. And speaking of taking excellent care of a prized vehicle, yet another potential discount when it comes to insuring a Ferrari would be verified use of a locked garage with appropriate anti-theft deterrents when the vehicle is not in use.
All told, the cost of insuring a Ferrari has to potential to not cost the owner any more than insuring any other vehicle. However, it also has the potential to cost the owner way more. Essentially, it boils down to the motivations, maturity and personal responsibility of the individual owner. Is it really any wonder why Ferrari owners tend to be of an elite class of which most of us can only dream?