When you own a specialist car, an off-the-shelf insurance product is probably about as well suited as wearing only a vest, pair of y-fronts and flip-flops for an Antarctic expedition.

Owning cars with a high value, sentimental value or rarity value comes with responsibilities, to yourself and those around you. You don’t want to be left out of pocket should you have to make a claim, and equally it would be a crying shame to find you couldn’t keep a car you’re emotionally attached to should it be declared a write-off.

This is why you need a specialist insurance policy. They're tailored to the needs of car enthusiasts, high-net worth individuals and car collectors alike. But knowing what features to look out for and how to secure the most suitable policy for your needs and budget is not the work of a moment.

We spoke with Ryan Seadon, Director of Sloane Private Clients, about the ins and outs of picking the best insurance product for specialist cars – as well as your property, artwork, jewellery and other valuables and even helicopters and planes. With more than 20 years of experience in the insurance industry, including managing underwriting at Chubb, and as a self-confessed petrolhead, Seadon knows what to look for when choosing specialist car insurance. Here are 15 points you need to know about.

‍1. Use a broker for a personal approach

Have you got a lifetime of experience working in the insurance industry? Are you able to spot a weasel-worded policy from a mile away? Do you know which provider does the most business with the marque of car you own? Let’s face it, specialist cars and individual circumstances call for a bespoke approach, and that’s where a broker can come into their own.

“A broker understands your needs, creates a risk profile and tailors coverage to suit these,” says Ryan Seadon of Sloane Private Clients. They’ll have your best interests at heart, adds Seadon, and have access to specialist insurers and better pricing, especially for high-value assets such as rare cars, artwork and property. “And ultimately, should you need to make a claim, they can handle what may be a stressful process on your behalf, and will act as your advocate.”

2. Pick a specialist insurer

New to the car enthusiast scene? Then you may not know that specialist insurers exist that cater solely for classic cars, supercars, hypercars and other collector vehicles. That’s how they can often provide tailored policies that offer better coverage at competitive rates. “You may find an aggregator has a lower on-paper price but the value for money and suitability of that policy won’t be a good fit,” warns Seadon. A specialist insurer should also boast extensive experience of the specialist car sector which in turn should allow you to get the most appropriate post-accident care for your car. 

3. Always opt for agreed value – not market value

Specialist cars, like most assets, can fluctuate in price. Agreed value insurance is essential for specialist cars because it ensures owners receive a pre-determined settlement in the event of a total loss, rather than the fluctuating market value. High-value cars, such as supercars and classic vehicles, can appreciate or have values that standard insurers may undervalue. With an agreed value policy, there’s no risk of depreciation affecting your claim, providing financial security and peace of mind.

“This type of coverage also simplifies the claims process, avoiding disputes over market fluctuations,” explains Seadon. “As part of an agreed valuation policy, look for Extended Replacement Cover, which allows for an increase in value of a car.”

‍4. Limit annual mileage

Insurers calculate risk partly based on how much your car is driven. If your high-value vehicle is used sparingly – perhaps for sunny Sunday morning drives, trackdays or occasional, special events – you should opt for a limited mileage policy. The fewer miles you cover annually, the lower your insurance premium may be, and, says Ryan Seadon, if you find you may exceed the agreed mileage, you can simply notify your broker or insurer, which may make a modest charge.

5. Extended repair cover

Most insurers, as a rule of thumb, write-off a car when the cost of repairing it exceeds 60 per cent of its value. A specialist product can give you up to 125 per cent of the value of the car -known as extended repair cover – meaning it doesn’t have to be written off.

6. Ask about diminished value compensation

Picture the scene: another driver crashes into your Lamborghini Murcielago which you have owned from new and it’s never before been involved in an accident or repair. Thanks to someone else's fault, that originality has been lost, and most likely some of the car’s value has been lost along with it. Diminution or diminished value cover is there to make up the shortfall in value.

7. Join an owners’ club

From Aston Martins to (Pagani) Zondas, there is probably an owner’s club out there which would welcome you. Even if you don’t expect to participate greatly, the membership benefits often include preferential insurance offers.

8. Upgrade security where the cars are kept

How secure is the location where you car or cars will be stored? Security-approved features such as electric gates, CCTV with live feeds and notifications, an alarm system and key safe can all help lower the risk from an insurer’s viewpoint.

 9. Own a collection of cars? Consider separating them

Where and how you store your cars significantly impacts your insurance premium. If a large collection of cars is divided into two different locations, then from an insurer’s perspective, the risk of exposure to a catastrophic loss – such as a fire – may be reduced.

“This is where a professional car storage company can come into its own,” points out Seadon. “Cars kept in climate-controlled storage facilities that have satisfied all the security and fire-protection requirements of an underwriter often attract lower premiums.”

10. Improve your car’s security

If your cherished sports car doesn’t have much in the way of security features, your broker or insurer is likely to have recommended products and partners that can retrospectively fit industry-approved engine immobilisers and alarms, GPS tracking devices and even advise on which steering wheel locks it recommends.

11. Increase your voluntary excess

Your excess – the amount you pay before your insurance kicks in – affects your premium. So by opting for a higher voluntary excess you can reduce your overall insurance cost. However, ensure that the excess remains affordable should you need to make a claim.

12. Bundle your insurance policies

It can work out to be more cost-effective when you bundle your daily-driver cars together with your specialist car, as well as property, valuables and even helicopters and planes. "Again, this is where a reputable insurance broker comes into their own," says Seadon, "given the potential amount of work that is involved in compiling all necessary information and knowing which insurer would best meet your particular needs."

13. Brush up your driving skills

Your personal driving history plays a crucial role in determining your insurance premium. A clean record with no claims or penalties shows insurers that you’re a low-risk driver. But you can go further still when it comes to showing that you’re competent behind the wheel. Consider advanced driving courses such as IAM RoadSmart or RoSPA, or take a course with an advanced driving coach like Paul Ripley. We've done the latter, and can testify as to how much it improves your awareness and car-handling skills on the road and track.

14. Laid-up cover

Many drivers choose to store their classic cars through the harsh weather and salted roads of the winter months. By notifying your insurer when the cars are declared off the road – known as SORN, or Statutory Off Road Notification – they can be insured for storage only, which removes the element of road-risk and lowers the cost.

15. Do you know about cherished salvage?

If the worst comes to the worst and your car is declared a write-off that is a complete loss, with cherished salvage you will both receive your agreed value payout for the car and get to keep the car. For those that have emotional attachments to a special car, and wish to attempt to have it repaired, this is a useful feature.

If you would like to know more about Racing Green’s services, or arrange for your car to be placed in our care, please speak with a member of the team, on 03330 909722, or email us at enquiries@racinggreencarstorage.co.uk