Ferrari Car Insurance

Founded in 1939 by Enzo Ferrari, Ferrari is currently one of the most renowned luxury car manufacturers in the world today, In fact, in 2014, the car manufacturer was rated by Brand Finance as the world’s most powerful brand. Having made its mark in the commercial market in 1947, the luxury car brand has smashed almost all possible records and has even sold the most expensive car till date. A brand to reckon with, Ferrari is still dominating the Formula One circuit and has legends such as Michael Schumacher, Kimi Raikkonen and the likes, making history with the car manufacturer over the years. While the car manufacturer has rolled out a number of models over the world, it has its presence in India as well with a handful of models on the roads of India. For those who own a Ferrari, they can purchase a car insurance policy from the car manufacturer, or from any insurance agent or motor insurance company in India. Goes without saying, the annual premium of the car insurance policy will range between lakhs and a couple of crores to say the least.

Ferrari models available in India

Listed below are the models that are sold by the luxury car band in India:

• Ferrari GTC4 Lussoi

Designed for the uber-rich, the Ferrari GTC4 Lussoi comes with a hefty price tag of Rs.4.20 crore (ex-showroom) in Delhi. Powered by a 3,855 cc engine, this super fast car is boosted by 601 bhp and 760 Nm of torque.

• Ferrari FF

Also priced over the Rs.4 crore range at an approximate ex-showroom price of Rs.4.56 Crore in Delhi, the Ferrari FF scorches the road with its 6,262 cc engine which is powered by 651.73 bhp and 636 Nm of torque.

• Ferrari 488

Priced at an ex-showroom price of Rs.3.88 crore in Delhi, the monstrous Ferrari 488 boasts of a 3,902 cc engine, which is powered by 661.1 bhp and 760 Nm of torque.

• Ferrari 458 Speciale

Powered by a 4,497 cc engine, the Ferrari is powered by 596.7 bhp and is bolted by 540 Nm of torque. The Ferrari Speciale is priced at Rs.4.07 crore, ex-showroom in Delhi.

• Ferrari California T

Coming with a hefty price tag of Rs.3.29 crore, the Ferrari California T is powered by a 3,855 cc engine and is boosted by 552.5 bhp and 755 Nm of torque.

• Ferrari F12 Berlinetta

Priced at Rs.4.71 crore, ex-showroom price in Delhi, the Ferrari F12 Berlinetta is powered by a 6,262 cc engine and is boosted by 730.9 bhp and torque of 690 Nm.

The prices as mentioned above are subject to change from time to time and vary between cities as well.

Types of Ferrari Car insurance

Those who wish to buy a Ferrari have two types of car insurance to choose from:

• Third-party car insurance

As mandated by the Government of India through the Motor Vehicles Act, 1988, all cars on the roads of India have to have the third-party car insurance policy or the third-party liability cover. This type of insurance extends coverage to the third party involved in the accident for repairs or replacement of parts that are damaged caused to the vehicle. That said, no coverage is extended to the policyholder with this type of insurance policy. Following 1 September 2018, all car owners will have to purchase the long-term third-party insurance policy as mandated by the Supreme Court of India. With the long-term third-party insurance, Ferrari Car insurers will be insured for a span of 3 years with a one-time premium payment.

• Comprehensive car insurance

As the name suggests and unlike the third-party car insurance policy, a comprehensive car insurance policy offers coverage to the damages of the property of both the involved parties - the policyholder (first party) as well as the third party. Coverage is just not extended in the case of an accident, but coverage to the policyholder to repair or replace the damaged parts is also extended under the ‘own damage cover’ following a natural calamity or man-made disaster. To enhance the protection of their Ferrari, car owners can also opt for add-on covers such as the zero depreciation cover, No Claim Bonus protect cover, roadside assistance cover, personal accident cover for passengers, etc.

What determines the premium of a Ferrari Car insurance policy

Since the Ferrari cars are designed specifically for the uber-rich, are super luxury sports cars, and come with the heavy price tag, Ferrari car owners can expect the highest possible premium to be set for their car. In fact, the annual car insurance premium for a Ferrari sold in India ranges between a few lakhs and crores - depending on the vehicle. That said, listed below are certain factors that are taken into consideration by insurers when setting the premium of a Ferrari Car Insurance policy:

• The make of the car

The make and model of the car determine the Ferrari car insurance premium. Insurers price cars with a higher engine cubic capacity more as the risk involved with a faster car is more than an ordinary car. Since Ferrari cars are super luxury sports cars with tons of engine cubic capacity, the premium will be on the highest possible grade, keeping this parameter in mind.

• The age of the car

The newer the car, the higher will be the premium of the car, the older the car, the lower will be the premium of the Ferrari car insurance policy. The premium of the car insurance policy is basically set based on the Insured Declared Value of the car, or in other words, the current market value of the car. With every passing year, the value of the car depreciates.

• The clam history of the policyholder

If the policyholder has made frequent claims in the past, then the insurer will set the premiums higher than normal due to the risk of having to insure the individual. However, if the policyholder has had a clean driving history, then the policyholder can negotiate for the best possible car insurance premium.

• The credit score of the individual

These days, to see if the policyholder is responsible or not, insurers check the credit score of the individual when setting the premium of the car insurance policy. In addition, if the policyholder is a doctor, member of the armed forces, or is a reputable professional in some field, he/she will be eligible to premium discounts. Lastly, if the car owner is a part of an automobile association, he/she will be eligible for a premium discount as well.

• The location of where the car will be driven

If the Ferrari car owner is going to be driving his/her car through an accident prone area or through an area that is prone to natural calamities such as floods, earthquakes, lightning, landslides, etc., or man-made disasters such as strikes, riots, etc., then the premium set by the insurer will be higher as the insurer will take into consideration the risk involved in insuring the car.

• If the car has safety devices

If the car has safety devices such as a parking sensor, anti-theft devices, and so on, then the insurer will reduce the premium as these devices avert any such related risk of the car being stolen or damaged when parking.

Ferrari Car Insurance FAQs

1. Can I reduce the Insured Declared Value of my Ferrari to get a cheaper premium?

You can reduce the Insured Declared Value of your Ferrari to get a cheaper premium, but following a claim if your Ferrari is damaged following an accident or a mishap, the payout from your pocket will be much more. That said, insurers prefer that car owners disclose the right IDV or at least 10% more or less than what’s the actual value of the car. In some cases, due to the car owner disclosing the wrong IDV, the insurer might reject the claim or terminate the policy.

2. Where can I get my Ferrari insured?

Ideally, the easiest way would be to get the car insured by Ferrari themselves as you would receive several perks by doing so. Else, most motor insurance companies in the country will insure the Ferrari, and as expected, the premiums will be astronomical.

3. What happens if my Ferrari car insurance policy has lapsed?

If you’ve allowed your Ferrari car insurance to lapse, you might have to pay a penalty if you wish to reinstate the policy, you would risk losing the No Claim Bonus, and the car might have to be inspected before you can reinstate the policy - which is mandatory if the car insurance policy has been lapsed for a long period. At times, the insurer might even refuse to renew your car insurance policy altogether.

4. Are add-on covers actually necessary for my Ferrari?

Add-on covers basically enhance the coverage of the car over what’s offered with the base car insurance policy. In the case of a Ferrari, it’s advisable to opt for add-on covers as they will reduce the out-of-pocket expenses following a claim. Add-on covers such as the engine and gearbox protect cover, zero depreciation cover, No Claim Bonus protect cover, roadside assistance cover etc., will come in handy when need be. That said, the add-on covers will have to be purchased separately from the base car insurance policy.

5. What’s the first thing I should do if I have crashed my Ferrari?

Call the insurer you have the Ferrari insured with and have them tow the vehicle to the service station.