Written by James Hirby | Fact checked by The Law Dictionary staff
Ferrari remains one of the world's most well-respected auto makers. For years, the company has built high-performance vehicles in its Italian homeland. Along with Lamborghini, Fiat and certain other high-quality Italian car manufacturers, Ferrari enjoys a well-deserved reputation among the industry's elite outfits. It should be no surprise that many racing professionals choose to drive Ferraris around their own cities and neighborhoods.
Of course, Ferrari's formidable attributes come at a steep price. Like other marques that share Ferrari's propensity for power and precision, virtually all Ferrari-branded vehicles cost more to purchase than the average American makes over the course of three full years of work. In fact, the brand's "base" models typically retail for nearly $200,000 in the United States. In certain other parts of the world, these cars may be even more expensive.
Since Ferraris cost so much to manufacture and distribute, they can be ruinously expensive to equip and repair. While most of the brand's vehicles enjoy enviable safety records relative to other vehicles in their class and may be driven for many thousands of miles at a time without requiring substantial servicing or repair, Ferrari owners must pay many times more than
owners of more economical car brands to fix their vehicles' major problems. Although most Ferrari owners are considerably more affluent than typical car buyers, these "hidden" costs of ownership can be ruinous even for well-heeled car enthusiasts.
In the United States, it can cost upwards of $10,000 per year to insure a brand-new Ferrari. Of course, the cost of car insurance is highly variable and may depend upon several interrelated factors. If you live in a state with above-average rates of car theft and vandalism, your Ferrari's annual insurance costs may be several times more than this base amount. By contrast, you may be able to get away with insuring your Ferrari for just $7,000 to $9,000 per year in a low-crime state.
You may be able to reduce your insurance costs further by garaging your vehicle for part of the year. Likewise, you might receive a substantial break on your insurance premiums by treating your Ferrari as a "collector's vehicle." In order to do this, you'll need to demonstrate that your vehicle is more than 25 years old. Further, you can't drive a "collector's vehicle" more than a certain number of miles per year. In most cases, this limit is set at fewer than 3,000 miles.