The term ‘hot hatch’ denotes a performance-orientated version of an existing mass-market car model. However, some hot hatches can be pricier to insure than others.
The following 10 tips may help you find the best car insurance policy for your high-performance vehicle:
Tip 1: Get quotes from more than one insurer
Insurance companies vary widely on price, so shopping around can give you a better deal. A quick internet search will reveal specialist motoring insurance providers that may be willing to offer discounts for drivers of high-performance cars.
Some insurers even have online quotes calculators that allow you to enter some details about your car and be presented with an estimated premium.
Tip 2: Compare ‘black box’ policies
Certain insurers are now offering performance-based insurance schemes that monitor driving behavior by recording aspects such as average speed, driving time and distance travelled. Drivers who abide by pre-determined safe driving conditions will be rewarded with a discount on their premiums.
Tip 3: Check what your car is worth
It’s important to have your car insured for its market value, not just what you paid for it. A replacement cost insurance policy will ensure that your insurer pays out enough money to buy a comparable second-hand model in the event of an accident, theft or vandalism. Contacting local car dealerships is one way of finding out how much your car is worth.
Tip 4: Check if you can make a claim online
Some insurers will let you make claims via their website, while others may charge extra money for home or office visits. If you’re pressed for time, this may be an opportunity to save some money by choosing an insurer that offers lower premiums in return for self-service options such as this.
Tip 5: Seek specialist advice
If you’re determined to get a policy that meets your specific needs, it can be helpful to talk with a professional insurance broker. Brokers have access to a wide range of different policies and discounts from different insurers, allowing them to find the best deal for your circumstances.
Tip 6: Make sure you know what your policy covers
Some car insurance policies may not offer coverage for certain types of off-road driving, such as going on a four-wheel drive training course or participating in rally races. Be aware that these activities are generally considered ‘high risk’ by insurers and could affect the cost of your premiums.
Tip 7: Reduce the chances of having to make a claim
While car insurance policies can’t stop accidents from happening, some may offer benefits such as legal protection or breakdown cover in case of emergencies. A few extras could help reduce the cost of your premiums, but do check that you’re not paying for anything you don’t need.
Tip 8: Read the small print
Your car insurance will be subject to various rules and exclusions, so it’s important to read the policy document thoroughly before you sign up. It’s also worth checking what will happen if your insurer goes out of business, as this could affect how they handle claims.
Tip 9: Keep track of your mileage
An insurer may reduce your premium if you can prove that you’re keeping to a certain annual mileage, such as 5,000 kilometers (3,100 miles) or less. If you know upfront that your annual mileage is likely to be greater than the threshold set by your insurer, it could be worth switching policies to one with a higher limit.
Tip 10: Plan ahead
It’s a good idea to call your car insurance provider before you buy any new accessories for your car. It’s very likely that adding items such as an upgraded sound system or alloy wheels may increase the cost of your premiums, so find out exactly how your insurer will treat these additional features before making a purchase.
How much can I save by choosing an insurer that offers self-service options?
By automating certain aspects of the claims process, some insurers are able to reduce their operating costs and pass these savings on to customers. As a result, getting hold of quotes from different providers could potentially lead to substantial cost savings.
What types of additional features on my car increase the cost of my premiums?
Any accessories that may increase the risk of an accident will generally result in higher premiums, such as upgraded sound systems or alloy wheels.
If my insurer goes out of business, how will this affect the claims I make?
Most insurers keep a ‘contingency fund’ to cover unexpected losses like this. The account is kept separate from the one used to pay regular premiums, so you shouldn’t be expected to pay for any losses while your insurer is in liquidation.
What types of off-road driving are generally considered ‘high risk’ by car insurance companies?
Activities such as going on a high-speed training course or diving in rally races can be classified as ‘high risk’ because it could potentially increase the chances of an accident. If you have plans to participate in these types of activities, you may need to look for an insurer that’s prepared to offer coverage for them.
Upon Analyzing The Facts
So, there you have it. 10 hot hatch car insurance tips that are sure to make your life easier and keep you from getting a ticket. What other questions do you have? Comment below and share your thoughts with us!