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Be Wiser Guide To Supercar Insurance

Tue, 18/09/2018
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For many motorists, a car is more than just a method of transport for getting you from a to b, it’s an interest and a hobby; an undying love for the rasping sound of a supercharged engine. A supercar will cost an owner upwards of £100,000, a large sum by any means. The cost to insure such a vehicle reflects the luxurious expense made by the buyer. This brings into question how easy it would be to insure such a car, so here is our guide to insuring a supercar.

Due to the car’s value, traditional insurance companies won’t typically attempt to insure a supercar. Supercar owners therefore have to reach out to private underwriters or insurance companies who specialise in high-end vehicles. On the whole, insuring the car itself is the same as insuring any other roadworthy vehicle in which a driver is covered for any accident that may involve themselves and the car. But due to the uniquely expensive context, there are a variety of different considerations which insurers take into account before giving the green light to supercar owners.

Unique features of insuring a supercar

A high-performance car automatically represents a higher risk to insurers and this results in higher insurance premiums for drivers. The cost of these premiums depends on a number of different factors, which insurers accumulate in order to produce a quote. These factors tend to include:

  • The driver’s age
  • The supercar’s age
  • The supercar’s value
  • The driver’s no claims bonus
  • The driver’s location                                           
  • Where the supercar is kept overnight and during the day
  • Any security features the supercar has fitted
  • Whether or not the supercar will be driven in Europe, or only the UK
  • Whether your supercar will be used in a collection

As you can see, these factors are very much similar to those considered for any other car. However, because supercars are typically non-standard vehicles for most insurers, those who do offer coverage do provide unique services for these particular vehicles. This can include: track day cover, excess protection, limited mileage discounts and car collection coverage, alongside other more generic services such as breakdown cover and a courtesy car.

Insurance groups

The word supercar can easily be seen as an umbrella term for a vast range of high-performance sports cars. Such a variety means that there is no universal price range for insuring a supercar, as every quote will be unique to the driver’s situation. There is however a certified method of categorising specific car models in what are known as insurance groups, whereby certain models will by default cost more to insure. The groups, which are set up by the Group Rating Panel, allow insurers to more accurately work out premiums. They range from one to 50, with group one being the cheapest to insure.

As you may have already guessed, supercars tend to find themselves sorted into the latter proportion of insurance groups. For example: the Audi R8, Ford GT and Porsche 911 all feature in group 50. Assigning a specific model to a particular group is not solely based on the vehicle itself, although repair costs is a primary factor in making this decision.  If you are considering purchasing a supercar, it will be worth your time researching what insurance group the vehicle you’re interested in is assigned to.

Reducing the cost of supercar insurance 

Insuring a supercar can work slightly differently to other cars, which means there are alternatives to out and out comprehensive coverage. One such option is an agreed value policy. With this type of policy, the driver will have agreed in advance with the insurance company exactly what the car is worth; meaning if you make a claim there will be no dispute in your supercar’s value. Some insurers may ask drivers to provide independent evidence of the value of the car and will be required to review this price regularly as prices fluctuate.

An alternative policy type is a limited mileage insurance. If you’re a driver who doesn’t drive their supercar on a day to day basis, you can agree with your insurer a specified limit to the number of miles you will drive in a year. This can be a great way to receive a lower insurance premium for your supercar, with your insurer understanding that it will not be on the road as frequently. There are also other more general alternatives to lowering your supercar’s insurance premium. Fitting a tracking device to your car will help the police and insurers recover your vehicle in the unfortunate event it is stolen. Although factory-fit optional extras are fine, any after-market modifications to your car can cause your insurance premiums to increase, so resisting the temptation to modify may be a good option. We would all love to drive a supercar, but minimising the number and type of drivers on the policy will help you reduce its price, especially if some of these drivers are young and inexperienced.

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