MoneywebDRIVE Issue 2 | Page 36

MoneywebDrive: Consumer-Driven Insuring a high-cost performance car Since a large portion of your car insurance premium goes towards funding accident-related damages, the less time your car spends on the road the lower the risk of accident and the lower your premiums will be. A R35 million Bugatti Veyron, expected in South Africa this year, will likely be uninsurable. there’s no appetite in the reinsurance market for this risk, making it effectively uninsurable. “The exposure is