How do you get a policy on a $1 million car? Insurers offer insight

Some insurance providers won’t cover vehicles worth $1 million or more
Every driver knows how car insurance works. Whenever you get a new vehicle, you need to have it insured to legally drive it on the road in 49 of the 50 U.S. states besides New Hampshire. Insurance prices vary depending on where you live.
While many insurance companies offer different rates depending on the vehicle, there are some cars out there that companies won’t consider insuring due to their value. The cost of some vehicles is so high that if they are in a crash, the repair prices are higher than some insurance companies are willing to cover. So when a car has a price of $1 million or more, how does the owner get insurance?
How does car insurance work?
You shouldn’t be driving without insurance. It’s a security blanket for drivers in case they damage a vehicle in a collision. The insurance company will make sure damages are paid for without the driver having to pay out of pocket, excluding deductibles they may have to meet, depending on the policy. While an average priced vehicle is simple to insure, exotic cars can be a bit more challenging.
How is exotic car insurance different from regular insurance?
For the average car buyer, insurance premiums will be based on a few factors such as driving record, geographical location, the age of the driver and the price of the car. The amount of coverage available from most insurers can cover a majority of the vehicles on the road financially.
For exotic cars that have high six-figure price tags, insurance companies that are willing to work with these vehicles will tell the owner what price they value the car at and set the premium based on that number. For cars that cost up to $1 million or more, things are a bit more complex. While many regular insurance companies don’t specialize in these types of vehicles, owners may have to look elsewhere at companies such as Hagerty or Chubb for insurance.
What do the insurance companies have to say?
Brian Rabold, the vice president of automotive intelligence at Hagerty, tells the Detroit Free Press in an interview about how million-dollar cars get insured.
“We have what we call an agreed-value policy. Hagerty is watching the market, collecting all the data we can on these types of cars and then determining what the value is,” Rabold said. “We produce a price guide, we publish those values online, so we’ll sit down and we’ll talk with that client and set that level, and then we agree that’s the covered amount.