Most of us dream of owning a luxury car, but what would it really cost to sit behind the wheel of a Ferrari? One of these super-cars could set you back anything from £200,000 to £1m upfront, and even if you settle for a second-hand model, this could easily still come with a price tag of £100,000. Having dug deep into your pocket to buy your sporty little number, you might think you can then sit back and enjoy your prize 196mph Italian super-car – but your financial outlay isn’t at an end just yet.
You could readily find that the cost of car insurance for your pride and joy makes your eyes water in the same way as someone getting the bill for Stamp Duty after buying a house. Tennis star Andy Murray made this very discovery a few years ago, having bought a bright red model to cheer himself up after splitting up with his girlfriend at the time. As he – and other Ferrari owners will know – a high-risk marque such as this often attracts a monster car insurance premium, regardless of the experience and deriving track record of the driver.
Many insurers won’t even go near a Ferrari, while those that do are likely to charge the thick end of £50,000-£100,000 a year. The new lightning-fast car, the electric hybrid 7-speed La Ferrari, unveiled in March 2013, is the fastest car the company has ever built, clocking 230mph. This model comes with an eye-wateringly steep £1 million price tag, so buying car insurance for that particular vehicle might require you to take out another mortgage.
Young Ferrari owners beware…
When it comes to buying car insurance for a Ferrari, the situation could get even more costly for young owners, as drivers who have just passed their test and who are relatively inexperience, are placed into a higher-risk category by insurers – meaning their car insurance premiums will be even higher. Celebrities splashing out on a Ferrari could also find premiums get steeper, as compensation costs after an accident could be pretty hefty.
How can car insurance groups affect premiums?
When buying any car – no matter where that’s a sporty little number or a reliable run-around – the key is to understand that all cars are assigned to specific car insurance groups, and that this can affect premiums. There are 50 groups, organised and maintained by the insurance industry, with cars that are allocated to the highest group costing the most to insure, and those assigned to the lowest groups costing the least.
Decisions about the groups are made by the Group Rating Panel. This panel is made up of a variety of representatives from the industry, including members of the Association of British Insurers and Lloyd’s Market Association. We’ve got more about these groups here A number of different factors determine which group a car is placed into. These include the cost of spare parts and repairs, the safety features, the performance of the vehicle, and the price of a new model.
Perhaps unsurprisingly, your typical Ferrari falls into group 50 – the highest group – meaning this model of car will attract the most expensive car insurance premiums. That said, the insurance group is only one factor which will determine how much you pay for your car insurance. Others include your age (as explained above), your occupation, where you live, your no claims bonus, and the number of points on your licence – so bear all of this in mind when applying for cover for any car.
Don’t forget running costs for your Ferrari Finally, don’t forget that, as well as the upfront cost of your Ferrari, and the cost of car insurance, you also need to factor in the cost of fuel and maintenance
There’s no escaping the fact that if you’re driving a fast car, you’re going to pay a lot to run it on the road. Figures from Car-emissions.com show that for the F430 model, the estimated fuel cost per 12,000 miles is around £3,285. You could, of course, make savings by driving your Ferrari more economically, but some will argue that this defeats the point of owning an expensive performance car.
That said, if you drive your pride and joy like an F1 driver all the time, you’re going to pay the price financially – and you might feel the chill embrace of the long arm of the law if you break the speed limit. Your garage bills are also likely to be steep. Chances are you’ll need to find a specialist to tackle any mechanical problems, and specialists tend not to come cheap. Spare parts? Paintwork? New tyres? Your wallet is likely to take repeated beatings…
Keep a lid on the cost of car insurance
If you’re looking to save some money on your Ferrari car insurance premium, there are some simple money-saving tips you could consider.
- Improve the security by fitting an approved alarm and immobiliser, and make sure you park your car safely at night – preferably in a secure garage
- Think about increasing the excess – the chunk you pay towards any claim – as a higher excess can mean a lower premium. Just don’t make it too high as you might not get enough if you make a claim to pay for the necessary repairs
- Limit your mileage, as the more you drive, the most expensive your premium will be. By reducing the number of miles you drive, you can keep costs down. But always give an accurate figure or you could jeopardise your cover
- When buying car insurance for your Ferrari, only pay for that you need: removing add-ons such as legal expenses cover (if you decide you don’t need it) will mean you should be able to find a cheaper quote
- Never accept your renewal quote and always shop around to see if you can find a better deal. That’s what our car insurance quote service is here for!