Insurance policies aren’t one size fits all, especially when it comes to classic and performance cars. Taking the specialist route could save you a lot of hassle.
Words: James Page
Photo: George Woodward
The internet has transformed the way in which we buy many things, including car insurance. You input your details and criteria, choose the cheapest option, receive your free cuddly toy – job done. It’s quick, easy, and as long as your cover ticks the basic boxes you’re unlikely to give it much more thought.
This is fine for modern mainstream models but is not necessarily best for performance or classic cars. A standard policy’s limitations become apparent when you need to call on it and in a worst case scenario, a small saving on the annual premium turns into a false economy.
When you’ve invested time and money in your car, it makes sense to properly insure it for its role. Elements ranging from mileage and agreed value to European driving and trackdays should all be considerations and you may be better off going to a specialist, rather than using a generic comparison site. In other words, you need a company that knows a 993 from a 996.
“We deal with the very oldest Porsches to the latest models and everything in between,” says David Hamer of Lockton Performance, which has developed an insurance scheme in conjunction with PCGB for Club members. “And that includes single cars up to big collections.
“Everyone wants to buy based on price. That’s their only criteria. Typically, these policies give minimum protection and aren’t suited to classics or high-performance cars. They’ll just pay market value, rather than agreed value, when the time comes. They’ll also nominate the repairer when it comes to damage and there won’t be breakdown cover for the UK or EU.”
The way the Porsche market has gone in recent years means the issue of agreed valuations is a vital consideration for classic or high-performance car owners. An agreed value policy means the car’s individual condition and history is taken into account when it’s valued. After all, just because most 928s are worth a certain amount, it doesn’t mean yours is.
Industry analysts have identified under-insuring, by failing to keep up with the changing market, as a genuine problem. David advises: “We recommend that people look at values every two years.”
Specialist insurers recognise that people tend to use classic or performance cars differently from their daily drive. Over the past couple of decades, there’s been a move away from events where you park your pride and joy in a field among hundreds of other static machines to using them and, in some cases, using them hard.
David says: “Anything on the road is fine as long as it doesn’t involve racing or a speed trial. Problems start when you go on a track or a disused airfield. Those are specifically excluded under most policies.” With Lockton’s PCGB policy, however, owners are covered for official Club trackdays on a recognised circuit, with a 10 per cent excess for accidental damage and third party cover up to £2 million. David says: “Our underwriters are very confident about PCGB trackdays. With a general public trackday, you could be next to some youngster in a Fiesta who has a different mindset. We don’t charge extra for PCGB trackday cover as long as you tell us first. We say to get an ARDS instructor for your first trackday and then you’re signed off if you’re safe.”
Note that it does not give carte blanche in terms of track or competition use. David explains: “It excludes the Nürburgring and events such as the Gumball 3000 Rally. Those are specifically excluded from policies because you can do so much damage.” If the folk there need to recover your car (from €600), replace any Armco barriers (charged per tier and per metre), or close the circuit (from €1350 per hour), you’ll have a very expensive day.
Lockton’s PCGB policy is provided by Chubb Insurance, which really understands enthusiasts’ requirements, from agreed value to allowing you to specify where a car is repaired (a key issue with specialist cars) and driving in Europe. Such detail is crucial for Lockton, as is the streamlined nature of the claims service, designed to minimise stress after an incident. “That’s a big thing for us,” says David. “I recall a Ferrari 458 that had a major accident and went back to Maranello for extensive repairs. The client had to make only two calls – one to tell us the accident had happened then, six months later, he returned the call we’d made asking him where he’d like the repaired car to be delivered.”
Salvage is another area where specialist insurance can pay dividends. David says owners often want to keep a car, even if it’s technically been written off. By law, in categories A and B the bodyshell has to be crushed but B allows for reusable parts to be removed first.
The other categories, previously known as C and D and recently renamed S and N, cover cars that could be repaired but where the cost makes this uneconomical. S indicates structural damage, N denotes non-structural damage and can particularly apply to modern cars due to their extensive use of electronics. Having an insurer that can talk you through all this, as well as issues such as insuring your car during restoration or storage, is invaluable.
David acknowledges: “Nobody wakes up with a burning desire to buy insurance!” But specialists such as Lockton make it much easier to get the right cover and it’ll pay dividends should you ever need it. PP
For more details about the Lockton scheme call 020 7933 2200.
Agreed Valuation
Porsche Club is able to provide members with a free valuations service for their Porsche, which can then be passed to Lockton for the purpose of agreed valuation. Once signed in to the Club website, click here to begin the process.
Each submission will be manually reviewed by a member of the Clubhouse team and we aim to produce a completed valuation letter within 72 hours. If you have any questions relating to the process, please email admin@porscheclubgb.com