Con­si­der t­his w­hen in­su­ring an exo­tic car

George Herald - Auto Dealer - - News -

High va­lue and per­for­man­ce vehi­cles can ran­ge from an­ti­ques and clas­si­cs to full spe­ci­fi­ca­ti­on SUVs or luxu­ry sports cars, which can cost up to R7-mil­li­on or e­ven mo­re. If you hap­pen to get a fi­nan­ci­al wind­fall, li­ke win­ning the lot­te­ry, re­cei­ving an in­her­i­tan­ce or are a high-net­worth in­di­vi­du­al, the­re are im­por­tant in­su­ran­ce fac­tors to con­si­der be­fo­re star­ting a car col­lecti­on or spoi­ling your­self with an ex­cep­ti­o­nal­ly high va­lu­ed vehi­cle, says T­heu­nis Fou­rie, he­ad of FNB In­su­ran­ce Bro­kers.

“W­hen co­ve­ring as­sets of t­his na­tu­re, it is ad­vi­sa­ble to con­sult a kno­w­led­ge­a­ble and ex­pe­rien­ced bro­ker to a­void ma­king cos­t­ly mis­ta­kes, due to the com­plex­i­ty of in­su­ring highly va­lu­a­ble and u­nu­su­al as­sets,” says Fou­rie. He na­mes fi­ve fac­tors to con­si­der w­hen in­su­ring a high va­lu­ed vehi­cle: Re-in­su­ran­ce - En­s­u­re that your bro­ker has the ap­pro­pri­a­te re­la­ti­ons­hips with blue chip in­su­rers to co­ver the ex­pen­si­ve car. So­me in­su­rers ha­ve re-in­su­ran­ce li­mits which may

pre­vent a bro­ker from pla­cing the vehi­cle on co­ver di­rect­ly. As a re­sult, the bro­ker may need to sour­ce al­ter­na­ti­ve pro­ducts and quo­tes to ac­com­mo­da­te your re­quest.

Un­der­wri­ting li­mits - In­su­rers may con­si­der the va­lue and per­for­man­ce of the vehi­cle and li­mit who is in­su­red to dri­ve, the mi­lea­ge per an­num, se­cu­ri­ty de­vi­ces u­sed and the lo­ca­ti­on w­he­re it is par­ked at nig­ht, de­pen­ding on w­hat the car is u­sed for.

P­re­mi­um pri­cing - In­su­rers will of­ten ra­te you ac­cor­ding to the va­lue of the vehi­cle, ty­pe of vehi­cle, cost of re-in­su­ran­ce, a­vai­la­bi­li­ty of parts if the vehi­cle is an im­port, and your risk pro­fi­le.

Ex­ces­ses - A 5% ex­cess w­hen clai­ming could cost a for­tu­ne if you wri­te off a car worth R5-mil­li­on. Con­si­der flat ex­ces­ses so that you are a­wa­re of w­hat you are in for in the e­vent of a claim. In so­me ca­ses, se­lecting a vo­lun­ta­ry ex­cess could re­du­ce your p­re­mi­um con­si­de­ra­bly. Ho­we­ver, in­su­rers ge­ne­ral­ly pro­vi­de their lo­west ra­te to clients with a low-loss ra­tio and a vo­lun­ta­ry ex­cess may not pro­vi­de the re­ducti­on you ho­ped for.

Risk ma­na­ge­ment - Be a risk-ad­ver­se o­w­ner and fol­low all re­stricti­ons laid out by your bro­ker. Al­so be a ca­re­ful and de­fen­si­ve dri­ver, ta­king in­to ac­count that al­most 70% of cars on the ro­ad are un­in­su­red.

“De­pen­ding on the ty­pe of car and w­hat you in­tend to use it for, your bro­ker will be be­st sui­ted to ad­vi­se you on all the fac­tors to con­si­der, fi­ne print, and ot­her re­stricti­ons you may need to be a­wa­re of, for ex­am­ple me­a­su­res to fol­low w­hen ta­king the car out of the coun­try, at­ten­ding track days or car shows,” con­clu­des Fou­rie.

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