13th March 2019

What is the difference between high-value and standard car insurance?

Supercars, Hypercars and Megacars often require a much higher level of cover than standard motors due to their value and specialist nature.

These high-value vehicles are not only well regarded due to their status, more notably, they also house a complex network of sophisticated technology with intuitive designs and world-leading features.

With this whole new class of cars, the quality of cover surely needs to reflect the quality of the vehicle. We take a look at the key differences between high-value and standard car insurance to demonstrate how a policy tailored specifically to high-value vehicles measures up.

Coveted vehicles
High-value cars are often highly sought after which means they’re at an increased risk of theft due to their prestige and worth. There are a number of underground gang networks who steal luxury cars to order and either ship them out of the country or strip them into parts to sell them on. To counteract this, the cover for theft of high-value cars is often unlimited, whilst this may not necessarily be the case for standard vehicle insurance.

Agreed value policies
It’s a well-known fact that cars depreciate in value from the moment you buy them. Most insurers will only reimburse the market value of your car at the time of the insurance claim if your car is written off at a total loss. That is unless you have purchased an Agreed Value Policy.

These policies cover you for the depreciation value of the car by paying out for a fixed amount as agreed on when the car is purchased, and not the amount the car is worth at the time of your claim. This ensures that you can claim back enough money to buy a replacement car of a similar value. These policies are rare for standard car policies and tend to only be available for more specialist and high-value vehicles.

There are a number of insurers who won’t insure high-value car owners if their car security doesn’t meet their pre-set conditions. This usually exceeds the requirements for standard car insurance. The type and level of security will differ on an individual basis between insurers. For example, some may require an approved tracking device, whereas others may stipulate a CAT 5 tracker only. High-value car owners may subsequently find that their initial outlay costs are higher due to their requirement to purchase the tracker and have it professionally fitted, however, the presence of these devices could lower their quote overall.

Vehicle value
There are a number of factors when it comes to calculating the cost of car insurance, and whilst the value of the car does play a part, it’s not the defining factor. For example, if a young new driver with a £300 car obtained an insurance quote, it would be higher due to their lack of experience, age and perhaps the questionable safety of the vehicle.

Conversely, if an experienced driver with a long history of safe driving and no claims with a £300,000 vehicle obtained car insurance, this would impact positively on their overall premiums. How much of a factor the value of your vehicle you drive will depend on the individual insurer.

Repair cost
It’s worth taking into account the repair amount of your vehicle which will also be a major influence toward the cost of your car insurance. Many Supercars are finely tuned to perfection, and therefore the repair costs following an accident would clearly be much higher than a more standard vehicle.

For example, causing serious damage to a Lamborghini Aventador would require a specialist technician trained in repairing carbon fibre, a much more difficult and costly feat compared to fixing it at the local garage. Even a small dent or scrape on this type of car can easily run into thousands to repair.

This means that insurance for high-value vehicles typically has a higher limit for repairs and a longer initial period of time where you will be able to get a new replacement for your vehicle. You will also be able to choose your own repairer, rather than being coerced into using an approved repairer from your insurer.

Courtesy Car
If your vehicle will be out of action for an extended period of time, it’s common for you to be offered a courtesy car to keep you on the road; this applies across both standard and high-value car insurance. The difference between the levels of cover then lies in the type of car you can hire. For those who drive powerful status vehicles, it’s not ideal to be presented with a standard hatchback to cover your journeys for the time your own vehicle is being repaired. However with the right insurance for high-value vehicles, your policy would cover the additional cost for you to hire a vehicle of a similar spec to your own.

If you’re looking to insure your own high-value vehicle, we can arrange a policy which is suited to you and your car.  We understand the requirements of these specialist motors and with our seamless claims process, we’ll get you back onto the road as quickly as possible. Call us on 020 8294 1040 or email info@anamiagencies.co.uk.