AS Aberdeeen is said to be home to the highest proportion of millionaires than anywhere in the UK outside London, it is no surprise to see a high number of supercars driving up and down the city streets.
John Silcock, chief executive of North-east independent insurance firm, Borland Insurance, explains the importance of protecting these luxury vehicles.
With the recent reports stating that Aberdeen has the highest level of disposable income in the UK, the multi-millionaires living in the area reap the benefits by purchasing the ultimate supercars.
Of course, along with their iconic status, fast engines and stunning exteriors, these cars come with hefty price tags, which are often over six figures and for rare types can soar into the millions.
However, the cost of purchasing these high performance vehicles does not make a pit-stop there, as these types of cars require specialist car insurance, which can sometimes cost about ten per cent of the value of the vehicle each year.
Consequently, it is advisable that supercar owners ensure their car is fully protected with a quality insurance policy in place.
The main benefits of using a firm that specialises in this type of prestige insurance, is the competitive premiums and policies that they can offer, and the wealth of up-to-date knowledge about what is required when trying to insure these types of cars.
The insurer has to consider a number of aspects of the vehicle, including purchase price, its current value, the age, any extras on the car, details about the engine and interiors, as well as any specific details on maintenance and parts for the car.
However, in addition the insurer will also have to consider the lifestyle of the owner of the car, including driving history, age of driver and possible criminal records.
By making use of a prestige policy, supercar drivers can often benefit from fewer restrictions and extra incentives, including no excess costs for total loss, no deduction for wear or tear and no penalty for non-fault claims.
Most prestige motor policies also set an agreed value, so owners will know the exact amount they will receive in the event of theft or total loss and ensure your asset is fully protected.
In contrast, normal insurers would usually base this on market value, therefore people can sometimes lose out.
Other benefits that are a key part of this type of insurance is the ability to choose a preferred repairer and use of original manufacturer’s parts – this could be a vital for some car owners, as you would not want an unreliable firm to work on your pride and joy.
The expense of purchasing a supercar is much more than people think, with several hidden costs, and most importantly, the cost to protect the value of this significant asset.
Therefore, it is important that people consider the different types of polices on the market that will fully protect their dream asset.
The Borland Group, which incorporates Borland Insurance Ltd, Borland Financial Management Ltd and Aberdeen-based financial advisory firm, McHardy and Burnett, offers fully-independent and coordinated insurance advice, investments and pension advice, including prestige car insurance.
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