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Anyone who
drives a high performance car may assume that they are going to face
high insurance premiums – however, if you
compare car insurance quotes and follow a few simple steps you
should be able to find an affordable deal that still offers the
level of cover you require.
Here we look
at high performance car insurance and how to get a deal that offers
value for money.
Does it cost
more to insure a high performance car?
As a general
rule you will pay more to insure a high performance car than you
would to insure a conventional vehicle.
This is
because insurers base their premiums on a number of risk factors –
the more likely you are to make a claim, the higher your costs will
be. High powered cars are deemed more likely to be driven at fast
speeds and therefore more likely to be involved in high impact
crashes. What’s more is that performance vehicles tend to be
expensive – therefore if your car were badly damaged or written off
it would cost more for an insurer to repair or replace.
The
Association of British Insurers has compiled a database that ranks
vehicles into groups from 1-50 (previously 1-20) – those that fit
into higher groups are the most expensive to insure. Generally,
performance cars fit into higher groups, but if you haven’t yet
bought a vehicle and want to factor insurance costs into your budget
it can be worthwhile using the database to get an overview of how
much you’re likely to pay.
However, a
number of specialist car insurance companies have emerged that claim
they can offer lower rates to drivers of performance cars because
they respect these drivers are more likely to take care of their
vehicle. They also offer a number of specialist cover options that
may not be available with most conventional insurers.
What
incentives do specialist car insurance companies offer?
Among the
features that may be available with a specialist car insurance
company are:
- Agreed
valuations: If your car were written off or stolen the payout
you receive would typically be subject to a market valuation which
could leave you out of pocket depending on the market’s
fluctuations. However, some specialists offer agreed valuations so
you know from the outset that you will receive a fixed payout for
your car and what that valuation is.
- Cover for
modifications and imports: Most modifications are frowned on by
insurers as they can make a vehicle more expensive to repair or
replace; while it can be similarly expensive to repair imported
vehicles as they may have parts that are unavailable in the UK. As such,
some insurers may refuse cover altogether – which is why a
specialist insurer may be the best option.
- Cover for
rallies/track racing: If you plan to take your car on to a race
track or to compete in a special event you will usually not be
covered by a typical insurance policy and so a specialist deal is
recommended.
In addition,
many specialists offer discounts that are not always available
elsewhere such as:
- Advanced
driving course discounts: You may be rewarded if you complete an
advanced driving course to prove you can handle a performance car
such as the IAM qualification.
- Limited
mileage discounts: If you use your performance car on rare
occasions consider a limited mileage discount which takes into
account the amount of time you spend on the road – the less time you
are on the road, the less likelihood you are going to be involved in
an accident.
- Multi-car
discounts: Some insurers allow you to cover a performance car as
a second vehicle on a policy and will reward you with discounts for
using the same company.
- Owners’
club discounts: A handful of specialist insurers recognise that
members of owners’ and manufacturers’ clubs are more likely to keep
their vehicles in good condition and will therefore reward them with
premium savings.
Are there
other ways to save money on performance car insurance?
Regardless of
whether you want a specialist or conventional policy you should
compare as many deals as possible before you buy – that way you have
more peace of mind that you’re getting a competitive deal.
Comparison websites are a great place to start as they can compare
quotes from more than 100 insurers including some performance car
insurance specialists.
Remember that
lowering premiums revolves around reducing the risk of you making a
claim – here are some additional tips:
- Buy
online: Many insurers offer discounts if you take out a policy
on the internet because they save money by operating online.
- Drive
safely: Most insurers offer no-claims discounts as an incentive
to stay accident free – they could be worth as much as 60 per cent
off your premiums after five years.
- Improve
security:
Fit security
devices such as alarms, immobilisers and trackers – your insurer
should be able to offer advice on which systems offer the largest
savings.
- Park safely:
Keep your performance car in a garage overnight to limit the risk of
vehicle theft and vandalism.
- Raise your
voluntary excess:
Increasing the
excess (which is the amount you pay in the event of a claim) should
lower premiums, although it should only be set at a level you can
comfortably afford. |
