17th March 2022

What Determines The Cost Of My Performance Car Insurance?

Insurance costs for high-end vehicles have stayed more or less stable although some underwriters are requesting increased premiums. This is because there are many factors that come into play when determining the cost of performance car insurance, and the interplay between these factors gets even more complex the higher the value of the car in question.

In this article, we'll investigate these factors and how they affect the cost of performance car insurance.

Factors Related To The Vehicle

First of all, we have a series of factors linked to the car's characteristics. These include:

• Age: although, generally speaking, older cars are cheaper to insure, this is not a hard and fast rule. If your vintage supercar has collectible value, you should expect to pay higher premiums. The same applies to older performance cars that don't have the latest safety features.
• Vehicle value and features. In the UK, cars are divided into 50 group types depending on their features. Those in Group 1 are cheaper vehicles and carry lower premiums, whereas group 50 cars have a high market value or special features and parts that are more costly to replace, which raises the cost of insurance. On the other hand, supercars with first-class safety features may qualify for an insurance discount.

Location

Just like your postcode affects the value of your home, it also has an impact on the cost of car insurance. Insurance companies work under the assumption that urban areas have higher levels of theft and vandalism. Also, urban areas have a higher density of traffic, which increases the likelihood of car accidents. In the UK, postcodes are divided into 6 groups and labelled A to F, with A having the lowest perceived risk and F the highest - unsurprisingly, London boroughs carry the highest premiums.

A performance car is more likely to attract the interest of criminals due to its high value. So, where the supercar is kept is also a determining factor. Street parking entails a higher risk of theft, accidental damage, or vandalism, so premiums are generally higher. Therefore, keeping your performance car in a secure garage overnight can lower the risk and therefore the insurance premium.

Factors Related To The Driver

The driver's age: age affects car insurance because, overall, mature drivers have fewer accidents than less experienced drivers. However, it is also worth noting that from your 60th birthday onwards, many insurers consider that the risk of being involved in a car accident or traffic violation is higher and therefore premiums increase relative to what you pay aged 30 to 60. In the UK, insurance for drivers aged 65 to 75 can be up to 50% higher irrespective of which vehicle they drive.

Your driving record: the better your driving record is, the lower your premium will be. Insurers offer no-claims discounts or bonuses if you've not filed any claims for a while or accrued any points, so a good track record always works in your favour. You could get a 40% to 80% discount depending on how many consecutive years your driving record is spotless.

What Next?

As you can see, the ins and outs of performance car insurance premiums can be complex. To ensure you get the best possible cover at a reasonable price, it's wise to work with a specialist insurance broker like ManningUK. We work with performance car insurance specialists to make sure you always get the best possible cover for your high-value vehicle.

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