High-performance car insurance: Everything you need to know

High-performance car insurance in Australia can be purchased in one of two ways, and your choice will likely depend on the car and how you plan to use it. Generally, you’ll have two options when buying high-value car insurance - standard or specialist. 

Often, the standard insurance policies offered by insurers cover cosmetic modifications as an add-on extra and additional cost on top of their regular policy. They are unlikely to cover modifications that enhance the performance of the car. Specialist insurance policies are offered by specialised insurers who work with their customers to ensure the policies cover what the customer needs.

You could go to one of the many standard car insurers to get your high-performance car covered. However, standard insurers often only provide coverage for these vehicles as an extra, which means an additional cost on top of the standard premium. Or they offer ‘Hard to Place’ car insurance policies that are built to cover modified or imported cars.

There are also several performance car insurance specialists that you could purchase high-performance car insurance from. These insurers specialise in modified vehicles and cover a wider range of makes and models. Specialist car insurers understand the requirements you’re looking for in the best car insurance policy when you’ve purchased a high-performance car or modified your car to be a high-performance vehicle.

High-performance car insurance policies are typically only offered as comprehensive car insurance policies rather than also being available as third-party insurance. This means your car will be covered for a range of situations such as accidental damage, damage to third-party property, theft and more. If any of these incidents occur, your insurer will pay for repairs, towing and sometimes a hire car or travel costs.

There are some differences, especially if you take out cover with a specialist insurer for your high-performance car. These additional benefits may include:

With a standard car insurance policy, you can choose between the vehicle being covered for market value or the agreed value. With a high-performance car insurance policy, most insurers will only offer insurance based on agreed value. This means you and the insurer will agree upon the vehicle's value when taking out the policy. 

This will be the amount you get paid if the damage to the car is substantial enough for it to be written off. This can be beneficial with high-performance cars because they’re expensive, and you want to be able to replace them. You may find that using the agreed value in car insurance for expensive cars makes your premium higher.

Most owners of high-performance cars are quite attached to them, and if you’ve made modifications to the car, you may have some knowledge of the mechanics. A specialised high-performance car insurance policy gives you salvage rights. This means you can retain the ownership of the car if it’s written off which gives you the option of either replacing it or selling it for parts. Including salvage rights in your policy may come at an extra cost, so ensure you check with your insurer.

Specialised car insurance for high-performance vehicles may allow you to choose the repairer who does the work if the car is damaged. Many high-performance vehicles take specialist mechanics to repair, or you as the owner may only trust certain people to work on your car. 

This option gives you the peace of mind that you can ensure the work done on the car is of the highest quality and won’t do further damage to the car. Most standard policies only allow you to get your car repaired at a location authorised by your insurer. So, this option can be a massive benefit to a specialised high-performance car insurance policy.

If any of the performance-enhancing modifications are stolen or accidentally damaged, some specialist insurers may cover their replacement or repair costs. Be sure to let your insurer know of any and all modifications you make to your car and ensure they’re legal for vehicles in Australia; otherwise, the insurer may not cover them.

If your car is completely written off, therefore unable to be driven on the road again, some policies may offer you a brand new replacement. There could be some restrictions to this benefit, especially when it comes to the age of your car. The insurer may also only offer a brand new replacement vehicle if your car is written off within a certain period of you getting the policy or purchasing the car.

Ensure you understand the terms and conditions of all these benefits by reading your high-performance car insurance policy's Product Disclosure Statement (PDS) before you choose to include any of them in your policy or make a purchase.

You’ll find that most high-performance car insurance policies will be pricier than standard car insurance policies, but that doesn’t mean you can’t shop around. There are still a number of options in the market, and depending on your preferences, you can always find ways to reduce the cost of the premium. 

Here are a few ways you may be able to reduce your premium:

1. Secure your car

Ensure your high-performance car has the most up-to-date and secure security system installed. Add an alarm system, GPS tracker, immobiliser, and steering wheel lock to reduce the possibility of theft. You should also park the car in a safe and secure location to further reduce the risks. Ensuring your car is as secure as possible can often see a reduction in your premium.

2. Take an approved driving course

Driving a high-performance car can be risky, and insurers see these cars as being at a higher risk of an accident or claim. Taking an insurer-approved driving course can help improve your driving skills, reduce the chances of an accident and may tell your insurer you’re a responsible driver. As a result, you may be able to save money on your premium.

3. Compare high-performance car insurance policies

Before purchasing a high-performance car insurance policy, ensure you’ve shopped around and gotten quotes from multiple insurers to see who is offering the best deal. Don’t just rely on price; however, be sure to use comparison tools, like RateCity’s comparison tables, to easily compare your policy options and costs. 

You should also check the inclusions and exclusions. Some policies may include some benefits that other insurers will only include for an added fee. Once you’ve found the high-performance car insurance policy that’s right for you, ensure you tell the insurer about any and all modifications you’ve made to the vehicle or had done. If you fail to tell your insurer of any modifications, they may reject a claim or, worse, cancel your policy altogether.