Sitting comfortably somewhere between the Prius and the Batmobile, McLaren’s mid-priced line of supercars are eye-catching, immediately recognizable, and shockingly speedy. But, before you splash the cash on this street-ready race car, you need to know how much you’re going to spend on insurance. With the lowest priced McLaren model sitting at ~$150,000 MSRP, the thought of additional costs like insurance and taxes can be frightening.
How much should you be paying for insurance? And, how do you get the best possible rates?
Today, we’re going to talk about how much that insurance is going to cost you, and give you some tips on saving cash on that next supercar purchase.
10 Factors Affecting How Much It Costs to Insure a McLaren Supercar
Car insurance isn’t static. Each insurance company leverages a plethora of variables to deliver their rates, and rates will likely vary by the individual and certainly by the vehicle. Let’s go over a few of the factors that will impact how much you pay for insurance on your McLaren.
1. How Old You Are
If you’re relatively young (i.e., 16 – 24,) your insurance premiums are going to cost you a pretty penny. On average, teens and young adults are going to pay 70% more for car insurance.
Why do insurance companies care? Teen drivers are more likely to cause accidents than any other age group.
2. Your Credit Score
Like almost every other purchase in your life, your credit score is going to have an impact on insurance. There’s no easy way to tell how it will impact your insurance, but, in general, the lower the score, the higher the insurance premiums.
Why do insurance companies care? A Report to Congress by the Federal Trade Commission showed that those with lower credit scores are more likely to file claims.
3. Your Driving History
Your previous experience driving plays a significant role on your rates. Simple things such as speeding tickets can bump your monthly payments up while prior DUIs or reckless driving incidents will cause sharp increases.
Why do insurance companies care? Insurers use your history as an indicator of your future driving capabilities. The more incidents on your record, the higher your premiums are going to be.
4. Your Driving Experience
While your age plays a role, the number of years you’ve actually had your driver’s license plays a bigger role. So, if you are a brand new driver, your insurance rates are probably going to be higher than someone who has been cruising for a while.
Why do insurance companies care? The more years you’ve been driving, the more experience you have avoiding accidents and following road safety rules.
5. Where You Live
The state that you’re buying insurance in definitely has a noticeable impact. For example, Maine’s average insurance rate across all vehicles is $845. Michigan, on the other hand, is a whopping $2,611. That’s a 300% difference!
Why do insurance companies care? Each state has certain property vandalism rates, weather conditions, and accident rates. Plus, the population density and number of cars on the road play a factor.
6. How Much You Drive
Did you know that your annual miles also play a role in your insurance premiums? In fact, people who drive more can pay a couple hundred extra a month.
Why do insurance companies care? The more you drive, the more likely you are to be in an accident.
7. Your Coverage Level
This one is simple. The better coverage you have, the more you’re going to pay. For McLaren’s, you’re going to want the best coverage available, which means you’ll be paying more.
Why do insurance companies care? This determines how much they’re going to pay out if you’re involved in an auto accident.
8. Any Previous Claims
If you’ve previously made any insurance claims, your insurance is going to go up.
Why do insurance companies care? The more claims you have, the higher the risk factor you present to insurance companies.
9. Which McLaren You Own
There are currently three staple McLaren models — the 720s, the 570GT, and the 570S. Since each of these differ in value, the model you choose will determine your monthly payment. The higher the cost of your vehicle — the higher your insurance rates.
Why do insurance companies care? The more your car costs, the more they have to pay you in the case of a covered incident.
10. The Insurance Company
Finally, the insurance company you choose matters. Some insurance companies will charge you more than others. Usually, you can use one of the online insurance price checkers to figure this out.
The Average Insurance Cost for a McLaren Supercar
According to Carsurer, the average cost of insuring a McLaren supercar is $2,052 a year for adults, $3,405 a year for teens, and $1,702 a year for seniors.
Again, these costs will drastically differ depending upon where you live, your history, credit, etc.
How to Get the Best Insurance Rates for a McLaren Supercar
The most important aspect of scoring a great insurance rate is to shop around. According to a NerdWallet report, the average driver could save $416 a year if they simply shop around for insurance. For many, this means looking at the big insurers (e.g., Geico, Allstate, etc.) But, for McLaren owners, this can be a little more difficult. You can also check out Bankrate as they have just posted "The True Cost of Auto Insurance in 2022."
Many of the major insurance companies don’t insure supercars. Some of them specify that they won’t insure anything over $125,000, while others take each car on a case-by-case basis. Your best bet is to call each insurance company and gather rates yourself. You should definitely check out your local and regional car insurers as well — since they may be more likely to work with you.
There are also exotic and supercar specific insurance companies (e.g., Hagerty, Classic, etc.) but they tend to be more expensive. That being said, Hagerty is known for their incredible customer service and speedy claims.
How an LLC Can Help with McLaren Supercar Costs
Choosing the right insurance company can definitely help you save a mint on an exotic car purchase. But, what about taxes and fees that are attached to luxury car purchases? Did you know that you can set up an LLC in Montana to purchase those vehicles? Montana has no state tax so you can save thousands of dollars on that supercar purchase!
Contact a Montana LLC registrant to learn more about lowering the costs of owning a McLaren Supercar now.