World's most expensive car crash
The crash of a 1962 Ferrari GTO valued at up to $30 million would not be covered by the type of car insurance most people buy.
This post comes from Robert Frank at partner site CNBC.com.
But motoring around in your multimillion-dollar investments may not be such a great idea -- as we've just learned. (Post continues after video.)
Media reports say that American investor and millionaire Christopher Cox banged up his 1962 Ferrari GTO during a Ferrari rally in France recently. Apparently, Cox was hit from behind by another car while he was turning, forcing him into a crash that battered the car's front end. (Cox and his wife, who was in the passenger seat, are now fine after being treated for injuries).
The question now is the financial damage. While it's unclear how much Cox paid for the car when he bought it in 2005, the Ferrari GTO is considered the "Picasso" of the auto world, a true work of art prized for its scarcity. Only 38 were built, between 1962 and 1964. (Enzo Ferrari personally selected the original buyers).
A GTO built for racer Stirling Moss recently sold at auction for $35 million to telecom magnate Craig McCaw. Reports say Cox's car -- painted in baby blue with a canary yellow racing stripe -- may also be worth upward of $30 million.
Cox's car was involved in an earlier crash in 1976, reports say. And it could be rebuilt again, depending on the damage.
"If a car is properly restored, damages don't necessarily affect the value, especially in the circumstance of a rare Ferrari 250 GTO," said David Gooding, the president and founder of Gooding & Co., an automobile auction company.
Auction experts and collectors say most highly priced collectible cars are insured with special "collector" or "hobby" policies. These policies usually allow the owners to drive the cars to car shows or event rallies, though they don't usually cover daily use for commuting or grocery trips.
Mark Shussel, of the Chubb Group, which writes special insurance policies for collector cars, says people who own multimillion-dollar cars take extra care when taking them on the road.
"These owners tend not to drive them frequently," he said. "They want to preserve their investment."
The best way to preserve your investment in a collectible car, of course, is to keep it in the garage. But where's the fun in that?
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