Jaguar. Porsche. Mercedes. BMW. Bentley. Audi. Range Rover. Roll-Royce.  Prestige truly comes with these luxurious and high-performance cars.

Aside from these hefty price tags, what makes these cars so special? These cars are usually imported or sports car models. They may also be standard cars but modified with performance-enhancing features. These cars are typically built to have higher speeds but can still be driven with greater ease and control. They’re generally lightweight but with large and powerful engines. They also have powerful braking and handling systems.

Given that these are high-end cars, it is important to get an automobile insurance fit for such cars.

So…What Kind of Insurance Should you get for High-Performance Car Models?

While there are standard insurance policies available, note that these policies might not offer elements that specifically cater to these luxurious cars. You have to get Perth insurance brokers. These normally cover a higher premium due to several reasons.

What is the Coverage for These Special Insurance Plans?

High-performance automobile insurance will still have the same advantages available with standard comprehensive policies. These include coverage for accidental damage, damage to a different vehicle or property, theft, repairs, and towing. However, for special insurance plans, it can include extra benefits tailor-fit for high-performance vehicles.

Agreed value versus Market Price

For special automobile insurance, an agreed value is offered by the company instead of a market price. Agreed value may be a fixed sum you and your insurer choose for the car. Market price, on the other hand, is decided at the time of the claimable incident.

With agreed value, you will be able to know how much you will get in case your car is written off. Note, however, that some insurers may charge higher premiums if the worth you agree on is above your car’s market price.

Choice of Repair Shop

What’s great about the special insurance is that you can be the one to choose who will repair or restore your car to its original state.

Benefit of a Replacement Car

Special insurance policies can give you a replacement car in case your vehicle is written off. There are conditions for such an arrangement though. It depends on the age of your vehicle and if it’s written off within a particular period from the time the policy begins. There may be other exclusions and conditions so you have to check in detail with the insurance provider.

Provision for Excess-free window/windscreen glass replacement

Standard insurance policies offer replacement of damaged windows or windscreens. In contrast, specialist providers may provide this benefit excess-free. There may also be other conditions that may be applied by the insurance provider.

Salvage Rights for your Car

Another major difference for special insurance policies is that you can retain ownership of the car if it is written off. This means you can even decide whether to repair or sell some of its parts.

Insurance for Modifications

One advantage of special insurance policies is that it can cover for the repairs or replacement of performance-enhancing modifications. This is on the assumption that the car has been accidentally damaged or stolen. Note though that this insurance coverage for modifications is only for those that are legally allowed to be installed and have been declared to be insured.

How much is the cost of the Special Insurance for High-Performance Cars?

There are many factors that determine the price or premium for insuring your high-performance car. These include age, make and model of the vehicle, driver’s details, and even driving history.

Insurers of high-performance vehicles can also check out other factors like the car’s engine, body parts, and other performance-enhancing modifications.

As a rule of thumb, the larger and more powerful your engine is, the greater the risk. High-performance cars also have very powerful engines, expensive, unique parts, and modifications. If the car has parts and modifications that may be more difficult to replace, like imported or highly-customized ones, the higher the premium will be.

Luxurious cars can also be more prone to theft. Hence, with the increased risk of theft, the insurance premium also becomes higher as a result.

Can You Still Save on A Special Insurance Premium?

Yes, there are still ways to reduce the premium of your high-performance automobile insurance.

Top of mind is to always keep your car secured. Make sure your car is fully equipped with the more advanced security features of an alarm, immobilizer, a GPS tracker, and a wheel lock. In addition, always park your car in secure places.

Take an approved driving course fit for high-performance cars. Learn defensive driving. Improve your driving skills to minimize the risk of accidents. Reducing the level of risk could help you save up on your premium.

Lastly, take the time to compare your options with various insurance providers. Check out in detail what each one offers so you can better assess where you can save.

Tips to Consider in Choosing Special Insurance

Read the full Product Disclosure Statement (PDS) so you can be aware of all the terms and conditions, benefits, inclusions, and exclusions.

Let your insurer also know any modification you have done to your car so these can be covered. If not, the insurer might reject claims for such modifications in case you need it.

Remember, your car is not just any ordinary car. Being a high-performance car also merits special insurance. So choose your insurance provider well.

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.