How do I get high performance car insurance

Most of us have a dream car in mind, and for many, that means something fast, luxurious and powerful. However, those who have looked into a high-performance car will know that this comes at a cost, from the car itself to the insurance and maintenance associated with owning a specialist vehicle.

Still, the thrill of owning such a car does not dissuade many from purchasing one. Despite the heavy price tags, nearly 16,000 supercars were registered to a UK address between December 2018 to the following December. With prices ranging from around £20,000 to the millions for a performance car, it’s also no wonder that owners of these vehicles would want to protect their prized possession.

With so many different types of insurance available, it can often be confusing to find the right one for the vehicle you own. And the last thing you need is an invalid insurance policy after an accident resulting in you having to pay out of your own pocket for damages to your car. So, if you own a modified car, sports car or supercar, this article is for you.

Here, we will cover what a high-performance car is considered to be, what specialist insurance is available for them, and how to get a more competitive insurance premium. So, let’s jump straight in!

Can I get specialist insurance for a high-performance car?

Yes, there are specialist insurance policies that are designed to cover performance cars which come in a variety of forms. We’ll explain what that means and what insurance policies cover so that you can make sure you have the right one for your car. This will also hopefully help you make the most of your policy and provide you with the best cover for your needs.

What is a high-performance car?

When thinking of high-performance cars, you may immediately turn to manufacturers like Ferrari, Porsche and Lamborghini. However, high-performance cars also include vehicles such as the Ford Focus ST or the Toyota GR Yaris, which have been designed to be more powerful and luxurious than the average car model. Essentially, as the name suggests, a high-performance car is a cut above your average road car.

Insurers will not only categorise supercars and sportscars as being high-performance, but they may also include modified cars, kit cars, and prestige models. When it comes to modified cars, these can be regular cars that have been upgraded to have higher specifications. High-performance modifications may include:

SpoilersSports seatsEngine tuningBrake disc upgrades, e.g. carbon-ceramic discs

Modifications increase your insurance premium as they usually make the car faster and therefore riskier to drive in the eyes of your insurance company — drivers of cars fitted with aftermarket parts are 27% more likely to be involved in a collision. So, if you own a modified car, it is important to have the right type of insurance to cover any potential damage caused by an accident. Additionally, you will need to declare any modifications you have made to your car as failing to do so can invalidate an insurance claim, leaving you to foot the bill if you damage your vehicle.

What is high-performance car insurance?

High-performance insurance is a specialist type of insurance policy designed to cover top-of-the-range vehicles such as supercars, as well as cars that have been modified to perform better than the standard specification models.

Due to the associated risks of driving a high-power car, many insurance providers are more reluctant to insure them. Not only do these cars go faster and have more power under their bonnet, but they are also more expensive to fix if you are involved in an accident that damages the car. Specialist insurance means that your provider will take into account the higher risk of driving your performance car as well as more specific areas of owning a performance vehicle such as:

Sourcing specialist replacement partsPrivate registration plate coverAbility to increase coverage as the value of the car increases over timeProperty damageLegal assistanceRoadside assistanceLost keys

At the very minimum, you will need to have Third Party Only cover for your vehicle. However, performance vehicles are desirable and therefore more prone to theft, so it is advisable to have more extensive insurance cover to better protect your pride and joy. The highest level of cover is Fully Comprehensive, which covers the basics as well as additional extras such as the ones above. You may think for this reason it is the most expensive level of cover, but this is often not the case, so it is worth shopping around for a tailored quote.

How much does high-performance car insurance cost?

The price of an insurance policy will greatly depend on the following factors:

Your age: generally, the younger the driver, the more expensive the policy, as less experienced drivers are statistically more likely to be involved in an accident.Occupation: your job title impacts your insurance, mainly if you drive a lot due to your job as you have more chance of being in an accident.The car you are insuring: expensive and powerful cars cost more to insure, whereas a car with smaller engine size and less horsepower will be considerably easier and less expensive to insure.Your location: living in a built-up area with a higher crime rate will make your insurance premium rise.Your car’s security features: if your car has better security features, it can deter thieves from taking your vehicle, e.g. an immobiliserHow you use your car: simply using your car for domestic and pleasure will reduce your premium as you will likely spend less time on the road compared to someone who commutes to work daily.Your claims history: having a clean driving record and no claims on your policy will show that you are less likely to need repairs to your car and are not at high risk of getting into accidents.Your voluntary excess: the more money you are willing to contribute in the event of a claim, the less expensive your premium will be.The type of policy you choose: generally, Third Party only is the most expensive type of insurance, whereas Fully Comprehensive is the best value.

Insurance companies also use a guide of 50 insurance groups, provided by Thatcham Research, to help them calculate the cost of your insurance premium — the higher the number your car is in, the more expensive your insurance premium. You can check which category your vehicle is in using Thatcham’s vehicle search tool.

Why does it cost more to insure a high-performance car?

There are several reasons why insurance for performance cars is more expensive than insurance for a standard vehicle. As previously mentioned, high-performance cars are faster and more powerful than your average road car, which makes them more of a risk on the road. If you are involved in a collision, you may need replacement parts that are expensive, particularly if you own a specialist supercar or a modified car. Additionally, there will be more damage done to the vehicle if you have an accident at high speed.

Other factors that are taken into consideration for your insurance policy include:

New car value: the upfront cost of a vehicle can be used to estimate the repair costs should you damage your car — the more expensive a vehicle, the pricier the parts it consists of.Repair times: long waiting times for more expensive parts and specialist labourers for repairs also increase the price of fixing a damaged performance vehicle.Performance: higher power and acceleration may mean you are more likely to be involved in an accident and have more frequent insurance claims.Bumper compatibility: the structure of your car can affect the cost of insuring it as it affects how your car will be impacted by a front or rear accident.Car security: increased desirability will attract thieves, and therefore your car needs to have high levels of security.

How can I make my car insurance more affordable?

Owning and running a performance vehicle is a costly occupation, and naturally, you will want to make sure you get the best insurance policy possible for a competitive price. Thankfully, there are several things you can actively do to make your insurance premium more affordable, including:

Having a good driving historyJoin a car clubReduce your annual mileageImprove vehicle securityIncrease your voluntary excess

Having a good driving history

A good driving history (e.g. a no claims bonus and no convictions) will help reduce your insurance costs by proving you have a safe history of driving on the road. Tempting though it may be to push your performance car to extremes, you absolutely need to adhere to speed limits and make sure you are driving carefully and lawfully on the road. Penalty points and convictions for driving offences can dramatically increase your insurance premium, so having a clean record is important and will help you reduce the costs of insurance.

Join a car club

It is worth checking with your insurance provider to see whether they offer any discounts or perks for car club members. Many insurance providers actually work in association with car clubs and will offer discounts to their members. There are plenty of clubs which specialise in manufacturers and even niche car models, so there is likely to be one suitable for you and the vehicle you own.

Reduce your annual mileage

Another way to reduce your insurance premium is to reduce your annual mileage. Of course, you’ll want to take your car for a spin, but clocking up the miles does impact your insurance. The reason being that the more you drive on the roads, the higher the chances of getting into an accident. If you have access to another less expensive vehicle, it is potentially worth using that more day to day. You also have the option of only insuring your performance car for part of the year when you actually want to drive it. If you decide to do this, you will need to declare it off-road by requesting a Statutory Off Road Notification (SORN). Additionally, do not drive your car until you have insured and taxed it and made sure it has a valid MOT certificate.

Improve vehicle security

As we’ve previously mentioned, performance cars are incredibly desirable, and that makes them more prone to theft. Fitting your vehicle with more effective security features such as a tracking device or immobiliser is likely to reduce your insurance premium. For an extra level of protection, you will also likely benefit from storing your vehicle in a locked garage or secure driveway when it is not in use.

Increase your voluntary excess

Finally, you can increase the voluntary excess on your insurance policy. This is the amount of money you are willing to put towards any claim that you make with your insurance provider. Increasing your excess can lower your insurance costs, however, if you make a claim, you might have to pay both the voluntary and compulsory excess, so you will need to make sure you can afford to pay the amount you state on the policy.

Can younger drivers get insurance for high-performance cars?

Yes, it is possible to insure a younger driver for a performance car, however, it is likely to be expensive. Younger drivers don’t have the benefit of experience on the road or collecting years of no claims therefore, insurance providers see them as riskier to insure.

If you are a younger driver, there are some ways you can lower your insurance in addition to the ones we have already covered, including:

Adding an experienced named driver to your policy: insurers are likely to assume that a more experienced driver will be using the car some of the time, reducing the risk of it being on the road.Choose a performance car in a lower insurance category: if you have not already purchased a vehicle but you want a performance car, consider which insurance group it is in and possibly picks one in a less expensive category.Taking the Pass Plus course: specifically designed to make you a safer driver, some insurance policies will reduce the cost of your policy if you have passed the course.Have a black box fitted to your car: otherwise known as a telematics device, a black box tracks your driving and reports it back to your insurance provider. Having one is likely to make you drive more carefully, therefore, lowering the chances of getting into a high-speed accident.

Also read:
Do I need high performance car insurance?
What factors affect performance car insurance?