Why do some insurers specialise in high performance motor insurance?

Do you dream of driving a Porsche or a Ferrari? Do you watch the TV programmes that review cars and wish you could be driving them? Do you buy magazines, and flick through them finding motor vehicles you can fly down the German autobahns at 160mph? Do you see those motor vehicle adverts where beautiful convertible cars are serenely guided around twisting mountain roads in Italy, engine purring like a satiated tiger, and wish you were that driver? If you do, then you want a high performance car.

What you may not be thinking about is how much your premiums would be when you come to insure the motor vehicle. You may have paid over £100,000 to buy the car, so you're not exactly short of dosh, but are you able to budget for an amount from £2000 up to £5000 per annum for motor insurance?

Recently, the BBC's car programme, "Top Gear", performed a survey of the performance and sports car market, focusing particularly on insurance issues. They concluded that should you want to insure these cars you will be better off going to specialists in doing so. This is an area where the internet may not be so helpful in terms of search, selection and acquisition of insurance, as you will have special insurance needs. Better to call them to detail your requirements.

High performance motor insurance specialists exist and are growing in order to fill niches in the market, which opened due to the amount of insurance companies targeting "Mr and Mrs Average".

Take a Ford Mondeo. It costs £100 to replace a windscreen for a car as ubiquitous as a Ford. But it costs over £1000 to replace the windscreen for a Porsche. Specialist high performance motor vehicle insurers can take advantage of their links to Porsche repairers to get discounts for this.

High performance cars are normally driven faster, for obvious reasons. Thus the accidents involving them can sometimes be worse. However, they are also more likely to be driven where other motor vehicles aren't around, in order to allow them to be "stretched", so single vehicle accidents are more prevalent. Thus, third party liabilities are down with high performance cars.

You'll be asked when you apply for insurance to outline your driving experience. Once you get past the age of 25 in the standard motor insurance market, your premiums can start going down. But high performance insurance looks for people under the age of 30. Your experience in driving high performance cars is important for lowering your premiums. Older drivers offer less risk to insurers and also tend to buy these cars for different reasons. No claims bonuses also result in better rates.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

© AskFinancially.com 2008

Motor Insurance

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