Stacked with cutting edge technology, and with speeds that top out above 200 miles per hour, hypercars are the pinnacle of fast cars. But with a price tag in the millions of pounds, protecting these highly specialised machines requires dedicated hypercar insurance.
Below, we've set out our complete guide, covering everything you need to know when purchasing hypercar insurance.
What is a hypercar?
The terms 'supercar' and 'hypercar' are often used interchangeably, but this isn't necessarily accurate. The former is a catch-all for top-of-the-range performance cars, emphasising technology, design, and price.
Hypercars, meanwhile, are the cream of the supercars crop. Representing approximately the top one percent of supercars, these cars push the boundaries of performance and design, with the specs to rival many a modern-day race car. Necessarily exclusive, hypercars are typically manufactured in very limited numbers, with most models sold by invitation only – accounting for their prized status among collectors.
How much do hypercars cost to insure?
The price of hypercar insurance will vary from model to model. However, owners of hypercars can expect to pay higher insurance premiums for their vehicles compared to supercars and other sports cars, reflecting the cutting-edge materials and technology they require to produce.
Hypercar owners will also face stricter insurance terms in the form of higher excesses and restrictions on mileage. Owners may be required to demonstrate extensive experience of driving similar high-performance vehicles.
For such a specialised asset, there is little point searching for an off-the-shelf insurance product. Therefore, it's important to find yourself a specialist who can appraise your individual circumstances and respond accordingly.
Valuing hypercars – why you need agreed value
Given the limited production and unique specifications of most hypercars, they can be difficult to value accurately, and may appreciate in value over time.
This can have significant implications in the event of a claim. For instance, in circumstances where a vehicle has been written off, its full value might not be covered under the standard insurance terms. Owners without appropriate protection risk being underinsured.
To avoid this risk, it's vital that your insurance policy values your hypercar on an agreed value basis. With agreed value:
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Pay outs for your hypercar are not set based on its market valuation, but at a value agreed between yourself and the insurer at the start of the policy.
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This value can be set based on the purchase price of the car, or by an external professional valuation.
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For cars between 2 and 15 years old, policies can pay up to 125% of the agreed value, or £250,000, whichever is less to replace the vehicle with one of comparable specification.
Hypercar repairs – check your policy terms
If something does go wrong with your hypercar, it's important that you get it fixed the right way, by the right people, using the correct parts. Insurance policies can vary significantly when it comes to repairs, so owners should make sure to familiarise themselves with their terms.
Things to look out for:
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Some insurers will apply an increased excess if you choose your own repair company. This is not a necessary condition of insurance.
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Extended new car replacement cover will mean that if your car is deemed a total loss following an accident, or stolen, within the first 2 years from its registration as a new vehicle, then the insurer will replace it with an identical model.
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The industry standard for writing a car off is repairs that total 60% of the car's value. It is possible to find more favourable terms to avoid a write off.
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If your car requires repairs that can only be carried out by the manufacturer, then the insurer should be able to arrange for your car to be taken to the factory and returned to its pre-accident condition.
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Regardless of where the car is repaired, it should only ever be done using genuine parts – vital with any high-performance vehicle.
By taking steps to understand the repair process, owners can ensure they have complete peace of mind that the car will be as it was prior to any accident or repairs.
Guaranteed Asset Protection – extra coverage for your hypercar
If your vehicle is subject to a finance or lease agreement, then the settlement due in the event of a total loss claim may exceed the extended new car replacement cover.
Guaranteed Asset Protection (GAP), included in Lockton's policy as standard, is the solution. Any such policy should pay the difference between the total loss valuation of the vehicle and any settlement figure due under a lease or finance agreement. GAP will not cover any mileage or wear and tear penalties, add-on products or missed payments.
For further information on any the above, contact:
Andy Couper, Vice President, Lockton Performance
E: andy.couper@lockton.com