It is fair to say that one of Lockton's many specialities is arranging insurance for hypercars, but what is a hypercar and what are the important things to look for when it comes to insuring them?

Firstly, here are some key factors which separate them from sports and supercars.

  • Performance – top speed of more than 200mph
  • Price – more than £1,000,000
  • Exclusivity – most are made in numbers running to a few hundred at maximum
  • Technology – most will feature elements of hybrid technology
  • Pecking order – all will be seen as the pinnacle of the brand they represent
  • Ownership – usually form part of a larger collection, as many are sold by invitation only

We asked Simon Ambler, head of Lockton Performance, for his views on how to properly insure these amazing machines and here's what he had to say.

Premium & Terms

The materials and technology used in hypercars, plus the specialised nature of repairs, means that repair costs are much higher than their classic counterparts.  This in turn means that premium rates are commensurate with these costs.

The terms of the policy also reflect the hypercar status with much higher excesses and restrictions on mileage and drivers.

Insurers will also look for extensive driver experience before agreeing cover.

Insuring your hypercar as part of a larger collection will help reduce the premium associated with the car, stand-alone hypercar insurance is hard to find at realistic prices. 

By making sure that our insurers underwrite hypercars properly, it then means that you will get the benefits of not only the right level of cover but also the reassurance that, if the worst happens, repairs will also be carried out properly and not in a way that suits only the insurer.

Can we agree about values?

Many policies will only offer cover for newer cars on a Market Value basis. This will show a value on your policy schedule and this will be the maximum amount payable in the event of a total loss; there is no provision for any payment above this figure.

Hypercars can appreciate in value, in many cases almost as soon as they are acquired, so it is vital that your broker and insurer understand this and the policy provides the necessary protection.

We can insure a hypercar (even a brand new one) on an Agreed Value basis. This means that the insurer commits at the outset to settle a total loss claim based on the figure agreed initially. This can be based either on the purchase price for a new acquisition or using a professional valuation from a reputable source which we can then validate.

An appreciating asset?

Whilst insuring your hypercar on an agreed value basis is an excellent starting point, the car's value might increase and recent market trends have largely supported this. So, how does Lockton tackle this?

Firstly, our policy provides extended new car replacement cover. This means that if your car is deemed a total loss following 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.

We also have a solution for vehicles which are not brand new. If the car is between 2 and 15 years old, then the policy will pay up to 25% of the agreed value, or £250,000, whichever is less to replace the vehicle with one of comparable specification.

Getting your car repaired – properly

If something does go wrong, it is of paramount importance that your car is fixed the right way, by the right people and using the correct parts.

Where your car is sent for repairs is up to you. You will not be penalised for choosing a company to repair your car (some insurers apply an increased excess if you make this choice – ours doesn't) and if you don't have a chosen repairer, then Lockton and your insurer can assist.

At Lockton, we know the importance of these cars and will do everything possible not to write the car off – even if the repair bill exceeds the industry standard of 60% of the car's value.

Over the years we have overseen some large and complex repairs and it is important that the client feels part of the repair journey and to have complete peace of mind that the car will be 'as it was prior to the accident'.  This can sometimes mean we take the client out to the factory/specialist and talk them through the entire process.

If your car requires repairs that can only be carried out by the manufacturer, then the insurer can arrange for your car to be taken to the factory and returned to its pre-accident condition.

Regardless of where the car is repaired, it will only ever be done using genuine parts – vital with any high performance vehicle.

Mind the gap

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 even the extended replacement cover mentioned earlier.

Finance gap cover is the solution and our policy will pay the difference between the total loss valuation of the vehicle and any settlement figure due under a lease or finance agreement. It does not cover any mileage or wear & tear penalties, add-on products or missed payments.

Knowing our stuff

Lockton is immersed in the world of expensive, specialist and classic motor cars. We are the insurance partner to a number of prestige marque owners' clubs and we work closely with them and their members to understand exactly what our clients want.

We work with Glenmarch to understand market trends so that we can alert the owners of very expensive cars of any potentially significant changes.

Our team are motoring enthusiasts – they are genuinely as enthusiastic about protecting your car as you are about owning it.  Couple this with a market leading insurance policy and our new digital portal and you have a combination that is hard to beat.

If you are fortunate enough to own a hypercar, or indeed any specialist car then talk to the experts today; we would be delighted to show you how Lockton can assist.