Getting sports cars covered

Owning a sports car may seem glamorous but there is a not-so-glamorous side to it as well. Other costs associated with car ownership are also higher – one of them being insuring your dream machine. But where can you find suitable and well priced insurance? Do all providers insurance sports cars? Insurance Guru gives you the basics on where to start your quest for value in the quality insurance market.

Insuring sports cars

Not all insurers offer reasonably priced premiums for luxury cars or sports cars so it takes work to find a provider that offers value. You can be pretty confident the bigger providers will be interested in your business, but that doesn’t mean you’ll be prepared to pay the prices they quote. Recognising this problem, Porsche, for example, provides its own insurance services in association with Vero Insurance Ltd. If you are buying a sports car it would be wise to check with the dealer you buy from for suggestions about companies that insure elite cars – at a good price. The premium prices can be enough to knock your socks off.

The primary reasons for the more costly premiums are:

• these types of cars are considered to be riskier to cover as the drivers are assumed to work their cars harder
• the vehicles can be magnets for thieves
• it can be harder to get body parts when repair is needed
• age of the driver
• age of the vehicle
• whether you drive it everyday or just on weekends.

Studies show that it costs up to four times as much to insure a Porsche as a Ford.

Finding  the right insurer

There are two obvious places to start when seeking an insurer – the dealer and your friends. To start with, speak to the dealer who sold you the car – they should be able to name and recommend insurers. In some cases, insurance can be bought directly from the dealer, but you may have to pay through the nose for it.

Ways to get a better deal include seeing whether your car is classified as a collectible or classic car. This can give you a cheaper premium. Shannon’s is a well known and reputable collectible car insurer – and also functions as a bit of a focal point for the classic car community. Connect with some other car owners on online forums and ask their views. This is an increasingly popular way for car owners to get information. Specialist car insurance company Just Car Insurance may also be able to provide competitive benefits and prices.

Another way to save some cash on your premium is to combine the insurance of two cars with the same company – say, your Testarossa and your Camry. The second car maybe the sweetener that gives you better bargaining power with your chosen provider.

Special considerations

You car may be subject to special conditions in order to keep your premium down. That may include being garaged, having security devices fitted and so forth. If you agree to these conditions but the vehicle is then stolen or damaged under different circumstances and these conditions do not appear to have been met your insurer may make your claim difficult or refuse to pay. Be wary of making false declarations when you take out your policy – it could prove to be a very costly white lie. 

And don’t forget – a CTP green slip is mandatory for all Australian drivers, no matter what type of car you drive. This is to cover you against any claims that may arise due to the death or injury of another person in if you are at fault in an accident. CTP cover will not, however, cover you, the driver, or damage to vehicles or property, either your own or that of others.

To spread the cost burden of your sports car’s insurance premium consider making monthly payments. It may make the premium slightly more expensive overall but will reduce your upfront costs, and may also protect you against any company-wide premium hikes introduced at a later date.