It’s not just the price tag of a sports car that can be off-putting it’s the premiums you will have to pay on car insurance too. The faster the car you drive, the more you’re likely to pay – so how can you keep your car insurance costs down?
Car dealers are desperate to attract business in the New Year after a rough ride in 2008. Though petrol prices have slumped from their peaks during the summer, the consumer appetite for gas guzzlers has fallen, prompting dealers to put forward some tempting offers on those usually highly sought after premium cars.
If you’re tempted to buy a premium car however, you should be wary of a lot more than the vehicle’s fuel efficiency. The long-term costs of a car with a large engine can make the purchase questionable - particularly the car insurance costs.
Insurers charge premium rates for premium cars because they are generally driven at faster speeds. Even though their drivers are often enthusiasts and better than most, some accidents are unavoidable and at higher speeds the results are generally more devastating resulting in higher pay-outs for the insurance companies. Should an accident occur, repair costs are generally higher for premium cars such as Audis, BMWs and Mercedes, and they have lower depreciation levels making them more expensive to replace.
Furthermore, premium cars don’t just attract the interest of genuine car buyers – they also attract the attention of opportunist thieves who would much rather drive away in an attractive vehicle with a higher black market value than a conventional old car.
So it seems that higher car insurance costs for premium cars are inevitable – but how can you keep these expenses in check?
Why specialist car insurance companies may hold the key
One of the simplest ways to find cheap car insurance for any type of car is to compare as many quotes as you can using a comparison website. These tools could potentially compare deals from as many as 90 different providers giving you a great overview of what’s available to ensure you’re getting the cheapest deal.
However, it may also be worthwhile contacting several specialist providers directly and explaining your circumstances. There are a number of specialists on the market that are used to dealing with premium cars and consequently offer a number of incentives to their customers.
Some of the specialists in the UK market include Adrian Flux, Insure Your Motor, Performance Direct and Quote Line Direct. There are also several mainstream insurers that offer specialist teams for premium cars.
So what sort of incentives can you expect from these companies? Among the possible options are discounts if you are a member of a car club; coverage for track days and club events; consideration for all vehicle modifications; and discounts for limited mileage.
The key however, is to not limit yourself to these specialists alone. Though they should be considered it may still be possible to pick up a more affordable quote from a general car insurance provider. So take a full overview of the market with a comparison website and pay close attention to the vehicle options you choose to ensure you’re getting a cheap quote and one that is right for your needs.
Other ways to drive premium car insurance down
There are several ways to keep premium car insurance costs in check. Firstly, if you are a member of a car club be sure to inform your insurer – this could earn you a discount because it proves to the provider that you take care of your vehicle and are knowledgeable about how it works.
If you only use your premium car for special occasions – perhaps it is a convertible that you only drive in the summer – then ask your insurer if it will offer a limited mileage discount. According to the AA, if you drive below 12,000 miles a year you could cut your premiums by around five per cent – and there are even larger savings to be made, the less you drive. Think about how you use your vehicle too – if your premium car isn’t used for commuting then ensure your policy only reads ‘social, domestic and pleasure use’ rather than ‘commuting’ or ‘business use’.
From there, think about the ways that you would limit your car insurance costs with any insurer – these carry even greater weight when you are insuring a premium car.
For example, pay close attention to the car’s security. As premium cars are targeted so heavily by thieves, keeping your car in a garage overnight could slash your premiums, as could installing security devices, such as an immobiliser, car alarm or tracking device.
If you can afford to, pay your car insurance premiums upfront each year to cut out monthly interest charges and remember to drive safely to build up a no-claims discount.
If you’re tempted to buy a premium car however, you should be wary of a lot more than the vehicle’s fuel efficiency. The long-term costs of a car with a large engine can make the purchase questionable - particularly the car insurance costs.
Insurers charge premium rates for premium cars because they are generally driven at faster speeds. Even though their drivers are often enthusiasts and better than most, some accidents are unavoidable and at higher speeds the results are generally more devastating resulting in higher pay-outs for the insurance companies. Should an accident occur, repair costs are generally higher for premium cars such as Audis, BMWs and Mercedes, and they have lower depreciation levels making them more expensive to replace.
Furthermore, premium cars don’t just attract the interest of genuine car buyers – they also attract the attention of opportunist thieves who would much rather drive away in an attractive vehicle with a higher black market value than a conventional old car.
So it seems that higher car insurance costs for premium cars are inevitable – but how can you keep these expenses in check?
Why specialist car insurance companies may hold the key
One of the simplest ways to find cheap car insurance for any type of car is to compare as many quotes as you can using a comparison website. These tools could potentially compare deals from as many as 90 different providers giving you a great overview of what’s available to ensure you’re getting the cheapest deal.
However, it may also be worthwhile contacting several specialist providers directly and explaining your circumstances. There are a number of specialists on the market that are used to dealing with premium cars and consequently offer a number of incentives to their customers.
Some of the specialists in the UK market include Adrian Flux, Insure Your Motor, Performance Direct and Quote Line Direct. There are also several mainstream insurers that offer specialist teams for premium cars.
So what sort of incentives can you expect from these companies? Among the possible options are discounts if you are a member of a car club; coverage for track days and club events; consideration for all vehicle modifications; and discounts for limited mileage.
The key however, is to not limit yourself to these specialists alone. Though they should be considered it may still be possible to pick up a more affordable quote from a general car insurance provider. So take a full overview of the market with a comparison website and pay close attention to the vehicle options you choose to ensure you’re getting a cheap quote and one that is right for your needs.
Other ways to drive premium car insurance down
There are several ways to keep premium car insurance costs in check. Firstly, if you are a member of a car club be sure to inform your insurer – this could earn you a discount because it proves to the provider that you take care of your vehicle and are knowledgeable about how it works.
If you only use your premium car for special occasions – perhaps it is a convertible that you only drive in the summer – then ask your insurer if it will offer a limited mileage discount. According to the AA, if you drive below 12,000 miles a year you could cut your premiums by around five per cent – and there are even larger savings to be made, the less you drive. Think about how you use your vehicle too – if your premium car isn’t used for commuting then ensure your policy only reads ‘social, domestic and pleasure use’ rather than ‘commuting’ or ‘business use’.
From there, think about the ways that you would limit your car insurance costs with any insurer – these carry even greater weight when you are insuring a premium car.
For example, pay close attention to the car’s security. As premium cars are targeted so heavily by thieves, keeping your car in a garage overnight could slash your premiums, as could installing security devices, such as an immobiliser, car alarm or tracking device.
If you can afford to, pay your car insurance premiums upfront each year to cut out monthly interest charges and remember to drive safely to build up a no-claims discount.
By Alex Gregory
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