A Good Performance From Car Insurance
Everyone has an idea of the type of car they’d ideally like. You’ve probably plotted out exactly which car, or cars, you’d buy if your numbers came up on the Lottery. Maybe you stand and gape in open-mouthed admiration and envy as someone drives past in your dream car.
But what would be the true cost of your dream car? Obviously if you’re a Lottery winner, money would be no object, but if you’ve scrimped, saved and sold your grandma to buy the luxury sports car you’ve coveted, you may not have all that much to spare on hidden costs.
What hidden costs? I hear you cry. Well, aside from the obvious road tax and MOT costs, there’s car insurance – a legal requirement – and repair bills which will be inevitable on some cars. Add to that any ‘performance’ extras such as filter kits, injection systems and even racing style in-car accessories (if that’s your thing), and the costs can easily mount up. There’s a lot to take into account when planning a car purchase.
Before you decide you definitely want that sports car, do some research into the insurance and other details. Try and find out what the most common faults on your chosen model are, and how much they typically cost to fix in your area. Repair costs are one of the things an insurance underwriter will take into account when deciding what to charge you for cover.
It’s almost a given that any high performance vehicle will be in a high motor insurance group. The Subaru Impreza, the Lancer, the Evo and most other popular sports cars are group 20, the highest insurance group possible. If you are under 30 years of age, you’ll be classed in the high-risk group for a performance car, and will pay more for your premiums than someone even 2 years older. Luckily there are companies who offer cheap car insurance for performance cars; it’s just a matter of shopping around.
As well as insurance and repairs, check the emissions to find out the possible cost of your road tax. For cars registered after 1st March 2001, the cost of tax is calculated by the engine emissions, which can easily be found on the manufacturers website, or ask at the local dealership. To give you an idea, the new Subaru Impreza STi has emissions of 243 g/km, which means the road tax on one of these will work out at £300 for the year, or £165 per 6 months. Doesn’t sound like a huge amount, but when you have to pay it all in one go it can be quite a hardship.
And then there’s the thing that a lot of people seem to forget when purchasing a high-performance vehicle – the fuel consumption. Traditionally, the bigger the engine the more thirsty it is. And of course, the more powerful the engine the more fuel needed to run it. Sticking with the Subaru as an example, the urban fuel consumption is a mere 20.5 mpg, compared to a smaller model like the Peugeot 206 with an impressive 65.7 mpg.
The point is, all these things should be taken into account before going ahead with a purchase. There’s no point in spending a large amount for a car you can’t afford to move off your driveway. Lawn ornaments are much cheaper.
J Tillotson is a financial author based in the UK
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