Exotic cars like the recently launched Koenigsegg Agera S carry an equally exhilarative price tag of $5.3 million. Hence, it is no surprise that the insurance premium doesn't come cheap. It is estimated that the Agera S costs $180,000 to insure.

Likewise, the $6 million Pagani Huayra will cost an estimated $200,000 to insure if it reaches our shores.

The Business Times reported that although premiums are sky high, insurance brokers said they are on a downtrend.

One broker commented that the intensifying competition is one of the reasons. This business is garnering more attention from the firms as it commands a better profit margin. No doubt, demand in this segment has also grown significantly over the years.

However, not all supercar owners will benefit equally from the competitive market, as driver profile and claim history still play a vital role in determining the premium.

That said, not all insurance firms are keen to take on the segment due to the relatively higher risks due to the higher payouts in the case of a claim. Still, big players in the industry, such as AXA, AIG and Liberty, hold a significant market share.

The local's biggest motor insurer NTUC Income is one of the latest to enter to segment. Although AXA still has the biggest market share in premium car insurance, NTUC Income occupies 17.6 percent of the motor insurance market.