Burning money as well as rubber; hot-hatches can double insurance premiums
Credit crunched drivers with a taste for flash motors are paying twice as much to insure their sporty cars compared to standard models of the same vehicle, according to online insurer swiftcover.com.
Even a 30 year old man with five years no claims discount could be shelling out over £1,000 for a VW Golf GTi, whereas the more standard Golf S would attract an insurance premium of less than half that. In fact swiftcover.com found that drivers could save on average £513 on their insurance cover if they opted for calmer versions of their favourite hot-hatches.
Many people, particularly younger drivers, are tempted by the style and good looks of sports versions of leading cars, even though they are unlikely to enjoy the extra performance during day-to-day driving and commuting. However, because of their higher performance, insurance claims figures show that these types of vehicle are more likely to be involved in accidents, cost more to repair and more often fall prey to thieves, all of which pushes up the premiums of even the safest drivers.
swiftcover.coms figures reveal the extra cost of owning a hot-hatch
Volkswagen Golf GTI £1,002; Volkswagen Golf S £476; Extra cost for a hot-hatch£526
Honda Civic Type R £974; Honda Civic S £507; Extra cost for a hot-hatch £467
Seat Leon Cupra £1,031; Seat Leon S £485; Extra cost for a hot-hatch £546
All quotes from swiftcover.com and are for a 30 year old male business professional living in Birmingham with five years no claims bonus and a £250 voluntary excess insuring 2010 models.
swiftcover.com says that money conscious drivers could cut their motoring expenses drastically by choosing less sporty versions of the favourite cars. Tina Shortle, marketing director of swiftcover.com, explains: It might be great to own the latest hot-hatch, but even motorists with perfect driving histories are paying over the odds for cars with a few more brake horsepower and spoilers to make them look sporty. If they want to save money, drivers shouldnt be ruled by their hearts and instead should think about the real cost of car ownership. The money you save could be used to enjoy life in other ways.
Choosing a more standard car is also one of the best ways of making insurance more affordable for younger drivers, such as Kerry Wood, who, despite being only 25, managed to drive her annual car insurance premium down to just £122 with swiftcover.com.
Kerry, an accountant from Aberdeen who drives a Toyota Corolla, has a strong no claims history having never claimed in her eight years of driving. She switched to swiftcover.com when she received a renewal notice for £286 from her existing insurer.
Kerry says: I know I am a fairly young driver and insurance policies are traditionally expensive the younger you are, but I did think £286 seemed expensive for my policy. I decided to research online and was really impressed to find a quote from swiftcover.com for less than half the price of my existing renewal.
Having always driven carefully and built up a maximum no claims bonus its great to have this recognised with a cheap policy.
Notes to Editors
For press enquiries please contact:
Joshua Van Raalte or Paul Beadle
Brazil (PR agency for swiftcover.com)
Based in Cobham, Surrey and employing over 800 people, www.swiftcover.com started trading in June 2005 and was born out of a desire to revolutionise the general insurance market.
swiftcover.com offers car, travel and pet insurance online, and is Britain’s only insurance company without call centres, which means that the cost savings can be passed directly onto the customer and premiums are kept low. In 2008 swiftcover.com featured as the cheapest insurance quote on the comparison website moneysupermarket.com more often than any other insurer.
This powerful operating model combined with successful marketing and competitive pricing has proven to be a tremendous success. In 2008 swiftcover.com achieved over half a million live policies and in May 2009 sold their one millionth policy. They are considered to be the fastest growing insurer in the UK.
In 2007, AXA UK acquired swiftcover.com. It is now a wholly owned subsidiary of AXA Insurance UK PLC which forms part of AXA Group.
AXA UK is a part of the AXA Group. AXA is a world leader in financial protection. AXAs operations are diverse with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 120,000 staff and tied agents and, as of June 30 2006, had 1,091 billion in assets under management. AXA reported total IFRS revenues of 72 billion and IFRS underlying earnings of 3,258 million for the full year 2005. Our previous company performance is not a guide to how we may perform in the future.