Looking for Performance Car Insurance?
Performance car insurance by definition, refers to any vehicle built or modified for speed and handling.
Any car designed to deliver exhilarating top speeds, rapid acceleration from 0-60 and impressive BHP, is a performance vehicle. This quick guide explores the cost of insuring performance cars and what to look out for.
Why is performance car insurance expensive?
Obviously, performance car insurance is not going to be cheap. The cost of running and insuring a performance vehicle is part and parcel of owning one, it goes with the territory.
Naturally performance cars cost more to buy, cost more to repair and statistically, faster cars are more likely to be involved in an accident. In addition to this increase in risk, the insurance grouping for a performance car, especially one from an elite manufacturer such as Ferrari, Lamborghini, Porsche or Aston Martin, is going to be very high.
Two types of performance car driver
Generally speaking, drivers of performance cars fall into two categories when considered by insurers.
Likely to take great care of their performance cars; indicators of this type of driver can be membership of a manufacturers or owners club and/or an advanced driving qualification (IAM or similar). Plus, a healthy no claims record.
Can easily afford performance vehicles but have little interest in driving them carefully. This type of driver is usually identified by insurers by their driving history.
Things to check when buying performance car insurance
The world of performance car insurance can be complex, with so many insurers offering cover it’s important to be sure you are paying for the type cover you need.
This type of policy covers your vehicle for an agreed value at the point of taking out the policy. This can be important if you drive a modified car, classic car or kit car and you would want more than just marketing value in the event of a total write-off.
In the event of a total write-off, a salvage retention option gives you the right to buy back the car should you wish to strip it for valuable parts.
If your performance car is modified, it can be worthwhile arranging like-for-like cover for any modifications.
Cover when Driving Other Cars used to come as standard with a fully comprehensive policy, but today this is not necessarily the case. If this is something that’s important to you, check that it’s included in your policy.
If you intend on taking your performance car on the track this can be a good way to get cover. Not all insurers or policies offer track day bolt-ons though, so best to check when taking out the policy.
Some insurers include foreign use as standard on a performance car policy, but if this is something you intend to do, check it’s there rather than assume.
Ways to reduce performance car insurance
When insuring a performance car, it is worth using a specialist insurer who can tailor a policy to your vehicle. Of course, every insurer is going to take into consideration the cost of repairs, make and model, engine size, BHP and top speeds, alongside more personal details such as your age, driving history and address.
Other factors that could influence the cost of your policy include:
Some insurers will reduce premiums if there is evidence you have an advanced drivers’ qualification from the IAM (Institute of Advanced Motorists) or similar.
Especially if you are a younger driver, including a more experienced, claim-free driver as a named driver on your policy can reduce costs.
Make sure that your insurers are aware of all your security precautions including any tracking, or immobilising systems and whether you keep the vehicle in a secure, alarmed garage.
Mileage restrictions can be a great way to reduce premiums particularly if your performance car is a second car and only really used at the weekends.
If you own more than one car be sure to take full advantage of multi-car or collectors’ premiums.
Insurers often offer discounts to affiliated members clubs as membership indicates that you are passionate about your car and so more likely to care of it.
Performance Car Insurance – Useful FAQs
Yes, but it’s likely to be expensive.
Drivers under 21 will find it very hard to get performance car insurance and even drivers under 30 may struggle. Including an experienced named driver on the policy can help reduce costs but remember that they can only be a named driver. Deliberately listing an experienced driver as the main driver when they are not is illegal. It is known as ‘fronting’ and can invalidate the policy and possibly result in legal action.
Many performance cars are modified, and all good performance car insurers will be able to talk confidently to you about your modifications. When it comes to cars modified for performance expect the cost of insurance to rise in proportion to the power, i.e. a 10% increase in power will most likely lead to a 10% rise in cost to insure. Depending on your modifications it might also be worth discussing an agreed value policy with your insurers, or at the very least like-for-like cover on any modifications.
Yes, for your own peace of mind, and perhaps to better protect your no claims discount. Remember that the general rule of the track is that everyone is there at their own risk and so track day cover does not include third party liability.
It’s important to keep in mind that you’re not just insuring against your own likelihood of having an accident, but against the other drivers on the track with you. Not all performance cars are hugely expensive and so for some track day cover can be prohibitive.
Track day cover can be track dependant, so make sure that you check with your insurer beforehand and inform them at least 24 hours in advance that you’ll be attending a track day.
Track day add-ons, multi-day policies and agreeing a higher excess, are all ways of getting the cover you need at a reasonable price.
Temporary cover for a performance car is available if you only have the car for a limited period such as a holiday, or if you borrow it perhaps to use as a prom car or wedding car. Keep in mind through that your premium will be influenced by the experience you have of driving this type of vehicle, your age and your no claims record.