How To Insure A Ferrari With These Circumstances?

I got denied by literally everyone with an "agreed" value policy which is what i wanted. I have insurance right now with state farm but thats an actual cash value policy and the issue with those is they will pay you whatever their adjuster deems is the market value, the policy is peanuts i pay $425 every 6 months with state farm for the 575. The "agreed" value policies I sought were all between $3000-4000/year.

Anyways all the collector car policy companies are a complete joke let me give you a long rant. So I had an awesome girl at baldwin krystyn partners help me through the whole process, if you want her number message me bc she really went to battle for me for 4 days and in the end she couldn't find 1 person to give me an agreed value policy. Here were all the reasons I got rejected, read them and laugh.

Hagerty - so hagerty we dealt with on 3 occasions. First my red flags were the car was financed and I live in a condo. Ok understandable, so we called back the next day to talk to someone else and make sure was the case, indeed those were red flags + I just got the car a month ago. Ok no problem. After all the other companies rejected me we called back in a 3rd time and this she spoke with an underwriter and she actually got me an approval even though im in a condo and the car was financed, this time the issue was the best of all. So the Ferrari is parked at my vacation home bc my main home doesn't have the weather/roads for it. So at my vacation home, which is a condo, I only have 2 parking space, one is an SUV I lease and the other is now the Ferrari. Well, Im not married, I have lived with my girlfriend 9 years, and she comes up as a household member when they dig, anyways no problem, but Hagerty wants every household member to have a car registered to them at the location, she does not but since shes a household member they wouldnt do it. So I would need a car for me, a car for my girlfriend, and the Ferrari at my vacation home, just to get the deal done......complete joke but others were better

Chubb - no, condo

American Classic - declined bc they only do cars for shows and parades nothing else

JC Taylor - only 1999 and older, a 2002 Ferrari isn't old enough

PURE - a high net worth insurance company the broker I used works with, they wanted me to bring my main home, cars, businesses, everything over to insure 1 car. Yes let me unfurl years of relationships with state farm to insure 1 car at my vacation home

There were countless others but let me tell you guys what, if you have a condo, nobody wants to touch it. My condo building in particular has a unit for sale now for $65M. I dont live in a condo full of 19-25 year olds running around keying cars and causing havoc. None of these alleged "underwriters" even want to look at you on a case by case basis. I have 1 wreck in my life, it was 15 years ago, and it wasn't even my fault, I don't think its even on my record at this point. I have zero tickets either. I would say my risk profile is extremely low and now Im stuck with state farm and an actual cash value policy thats quite mediocre and not right for a car like the 575 but whatever state farm is the only co that would insure me so Im thankful for that.

Morale of the story is if these collector car policy companies look for every reason to decline you BEFORE you're a customer can you imagine what they will do when you actually need a claim? State Farm my issue aside from the actual cash value policy was we had insured the car for $135k and they suddenly dropped my coverage to $100k after 3 weeks so I had to pay an appraiser at their recommendation to come see the car and they would insure for the appraisal and I did that and appraisal came at $139k so they boosted it there. So better than nothing for the time being.

DO NOT BUY A FERRARI IF YOU INTEND TO LEAVE IT AT A CONDO and if you do not have a separate car for EVERY individual in your household and please god if you have these gorgeous machines go get an "agreed value" policy today do not stick with the mediocre insurance you have now, I promise its not worth it if you wreck it and have to deal with insurance companies valuing your car off manheim auction values or whatever awful metric they use. Most people do not know and understand insurance, I agree I was one, but I got a long crash course from my broker over the last few days trying to help me. Agreed value is more but its the only way to go

 

Why is that a red flag? You know an open end lease is basically financing right? There's no mileage limit and at the end I pay a small balloon to buy the car. The car is basically mine but for tax reasons people utilize these open end leases through these specialty finance companies.

I could have paid cash for the car, but im mid 30s and not just made of money. I have other homes,cars,etc but to me cash flow is important, I own a lot of high cap rate rental homes in low income areas where for $45-50k i can get $900-1000/mo rent. I own a pretty substantial portfolio of low income rentals and to me $130k cash is 3 homes that i can net prob $2000+/mo with in texas. I dont want to tie up $130k in a 575 when the open end lease is just simply making payments. I dont know maybe im dumb. I have an S65 I lease too. Some people just write checks and be done with it, I prefer to utilize my cash on projects making more cash, whats the point of 800+ credit if you're not gonna utilize these low rates to grow your business? It's fine Im financially stable, thats not the issue, whatever it is insuring an exotic car in florida, in a condo, its a complete nightmare for "agreed value". State Farm, bc i have my other suv at the condo with them,they insured it in 20 minutes, no questions asked. It's just a matter of what type of insurance you want, and with an exotic, you really shouldn't have anything but "agreed value" not even "stated value". These 575s are rare, you cant just have state farm try to pay you on a kelly blue book or nada guide value or whatever horrid metric they use.

 

yes state farm now has it insured for almost $140,000 through their classic car policy, it went up $103 every 6 months for that extra $40,000 in coverage but I had to pay $350 to get an appraiser to come and appraise it for State Farm. $1000 deductible, I have no idea what this $30,000 deductible above mentioned by someone was. State Farm has unreal rates but what Im saying is, 99% of exotic car owners have no idea what the difference between actual cash value or stated value or agreed value is. State Farm only offers actual cash value which is fine for most cars, but not exotics, state farm does not offer "agreed value" thats what the specialty companies do. I literally got a crash course just now through the insurance broker I was working with. My condo has probably 30 exotics, clearly all insured with someone, but to get an agreed value policy which is where you get the price you want in a total loss, nobody and i mean nobody is willing to insure it in a condo, even if this place has insane security. It was just something I didn't know and honestly after this 575 I would never register an exotic at my vacation home again, if this car was registered at my home this wouldn't be an issue I could insure it there and "ship" to vacation home, but not knowing any of this it was a mistake that's been a pain to correct. At this point I've done all I can and the car is covered for nearly $140k actual cash value with state farm and lets just hope I never need to file a claim

 

I never said I live in a 65M condo, but yes the penthouse at my building is for sale at that price, we have quite the various price points, 1 bedrooms start at $950k or so. Lots of nice cars but no Im not in that league. Im not quite at your level but for me $1M for a second home is about as much as I can handle at this juncture in life but thanks for the tip on the need for a nicer place.

 

Well here is where the underwriters who don't even waste two seconds to understand your situation piss me off. The car couldn't possibly flood, the first floor of our building is valet only which is where I leave it most of the time but if a big storm came, I have 2 spaces upstairs, all cars go on the 2nd floor, which would never flood, maybe with a once in a lifetime flood but guess what, my main home in Houston just got one of those and my house didn't flood. So that's a silly basis

Secondly, when you say I don't own the car, do you guys understand what an open end lease is? I put $55,000 cash down, I have a huge vested interest in it which is why I care so much about proper insurance. I had to put basically half down to even get financing for a 15 year old Ferrari and financed a nominal balance of $60,000 or so at a rate of nearly free money. I wanted to finance it all but since it was my first time with premier they wouldn't but since Im doing this now my next exotic through them the guy told me as long as I pay on time, the next I could do for $0 down. I pay a whopping $5,000 of interest on the $60,000 im open end leasing over the next 4 years, so to me I could pay it off but why? I have other projects I could be investing in so I leased this and my daily Mercedes and even the cadillac at our vacation home. Every payment on an open end lease has principal included, and on a 4 year term ALOT. This isn't like my daily driver S65 where I leased it with a couple thousand down and turn it in at the end where every payment goes to mercedes. An open end lease is basically a term for creative financing with tax benefits, thats all, its not a closed end lease. I owe a $30,000 balloon at the end to purchase the car, its mine, nobody is returning it and there is no mileage restriction. Companies like Premier use this type of financing for guys like me that want a toy and the cash flow.

 

Sort of worked out. State Farm asked me to get an appraisal done, so I paid this company $350 to come out for 45 minutes and do it. The appraisal came back at more than I was even looking for at $141,910. I don't even know the purpose of the appraisal bc if the car was worth $141k then the dealer I bought it from left alot of money on the table. Either way its over now, the appraisal, Its based off average of 5 other Rossa Corsa 575s for sale at this moment relative to the miles mine has. So now the process still takes a few days and state farm agent has sent to underwriters, so lets see what BS they'll come back with now. Honestly I've had my car a month and Im ready to get rid of it and next time I want a Ferrari I will just buy it here at my main home. The concept of getting a Ferrari and leaving it at the beach house to enjoy scenic drives on the water and putting low miles on it has been a complete nightmare. If this doesn't work out I'll honestly probably just upgrade my membership and put the car for sale on here and just lose whatever and move on. All these insurance companies suck, risk is defined on a case by case basis and none of them care if you're accident free or ticket free for the last 15+ years. Its all just a big waste of time at this point.

 

natman that is true, and with there being 17,500 or so 430s i believe that shouldn't be an issue. There was only about 2000 575s and 600 or so only in the US so getting fair value is tough, the appraiser did his report for me and low retail was $63k and high retail was $139k I was shocked. State Farm had me at $100k, I initially wanted a bit more but they lowered my coverage. The appraiser came back at $141k and now state farm has the 24 page appraisal he sent me and I forwarded to them, Im awaiting their response and will let you know.