The Lowdown on Insuring Expensive Cars

The Lowdown on Insuring Expensive Cars

When it comes to owning your dream car, the last thing you want to worry about is insurance. Insurance can be expensive. The cost depends on a wide range of factors including make and model, age and value which along with a range of other factors influence the price of your premium.

Let’s take a look at some of the most expensive cars in the UK to insure, as well as some tips on how to reduce the cost of your insurance.

What car is most expensive to insure?

In the UK, generally, the priciest insurance is charged to owners of high-end luxury cars like Ferraris, Rolls Royces, Bentleys, McLarens and Teslas as these have higher initial values, making them expensive to repair and higher performance levels. Typically the cost of insurance of this type of vehicle can be in excess of £10,000. Many people choose to go for an older classic style car as their dream, such as a Porsche which again can be expensive to insure depending on the age and the value.

What is the average cost of car insurance in the UK?

The average cost of car insurance in the UK is around £485 for a year's comprehensive insurance according to the Association of British Insurers. As you can see from the number above, insuring a high-end luxury car, a high-performance car or a classic car can be significantly more expensive than this.

The type of insurance you opt for is a key influencer of price. The most expensive option is typically Comprehensive which would cover any liabilities in respect of damage or injuries to a third party as well as covering damage to your own vehicle. The next option would be Third Party Fire and Theft (TPFT) which is typically cheaper than Comprehensive cover but wouldn’t cover any accident damage to your vehicle caused by yourself. A cheaper option might be to go for the UK’s minimum legal level of cover, which is Third Party Only (TPO). This level of insurance protects any vehicle you get into a collision with, paying out for repairs. The repairs to your own vehicle would be paid for out of your own pocket.

Comprehensive cover provides the greatest protection as it will often include benefits that are not present with other levels of cover. Such as breakdown cover, windscreen and glass cover, legal expenses cover, or agreed to mileage cover for vehicles that are not your primary mode of transport (such as sports or classic cars).

There are also specialist insurers/brokers for these types of vehicle so it pays to shop around if you are considering a vehicle of this type.

How much does it cost to insure a luxury car?

Luxury cars are generally much more expensive to insure than standard vehicles. This is not only because they have a higher risk of theft but also because they cost more to repair. Replacement parts are often pricier and harder to come by, and certain vehicles require specialist care from highly-trained mechanics.

Working out how much it would cost to insure your luxury car, however, is a bit like asking how long a piece of string is. There are many optional extras you can include as part of your policy, which will increase the price. If you are in the market for a luxury vehicle, it’s best to do your research into which cars have the lowest maintenance costs and whether it is a make or model common in the UK.

Imported luxury cars, like those from the US, will also generally cost more to insure. Again this is down to the availability of parts but also the disparity between EU/UK regulations and the regulations of the country of origin.

What colour cars have higher insurance rates?

There is a great deal of data available that correlates the colour of a vehicle and its accident rate, but most studies into this have been inconclusive. Although insurance companies probably won’t ask you for the colour of your car when you set up a policy, there are some thoughts as to why this view is taken.

Statistics show that it’s more to do with the type of car. People who purchase sports cars, which are proven to be more likely to be involved in an accident due to their speed and power, tend to opt for a sporty colour like red. This has therefore influenced the data by suggesting red-coloured cars cause more accidents, not the car itself.

Is it more expensive to insure a lease car?

Leasing contracts require the driver to have fully comprehensive insurance rather than the legal minimum (TPO). This leads many to believe that insuring a leased car will be more expensive by default, but this won’t be the case if you are a safe and experienced driver.

Taking out insurance on a leased car is a simple process and is done in much the same way as an owned car. You will just need to let the insurance broker know which finance company actually owns the car. This could be a good option for people looking to try out a luxury vehicle before committing to a full purchase.


Need to know more about the car you’re looking at? Get a vehicle check with mycarcheck to get the full picture.

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