New Super Car and Sports Car Day Venture - Help! Insurance
Discussion
Hi,
It's been I while since I've posted but stuck at a bit of a cross roads. I have two potential options as regards starting a self drive adventure day project.
The basic gist being I have 3 cars following a lead car (me) doing approximately 200 miles on a self drive day trip. The aim is to experience some great English and welsh roads allowing the drivers to take an equal turn in the 3 vehicles throughout the day with a pub lunch included. I'm am based in the North West so something around the Evo triangle would be the aim.
Most experience day's seem to be centred around track day's but that's not really my sort of thing. I'd much rather hit the roads and have hours of B road enjoyment rather than driving a few laps round a track for the same price. I'm sure there are plenty of people with the same thought.
I have the option of going down the route of a sports car day with the 3 likely vehicles being an elise, cayman S, (3rd TBC maybe a Z4m) which would be a lot more cost effective whilst still offering a great experience.
The 2nd option would require double the budget and be more performance cars base with the likely vehicles being a Maserati Granturismo, Vantage V8 and possibly a Carrera S or Lotus Europa.
Obviously the main sticking point is insurance. I would approximate around 5,000 miles per year per car but no idea who could offer a reasonable insurance package or it would simply wipe out the idea before it even starts. If I'm looking at insurance more than 6/8/10k then it simply isn't viable.
Does anyone have any suggestions of who to use insurance wise?
It's not a business I would be looking to scale due to other commitments but the ultimate aim is that I get to run cars I love at basically no cost. If I make a bit extra than great but that would just be a bonus.
I suppose the angle is that they're my cars and not just rental cars chucked in a warehouse and thrashed by every tom dick and harry so well looked after and maintained.
Any feedback other than insurance would be welcome and if you or anyone you know maybe interested in such a day.
Thanks
It's been I while since I've posted but stuck at a bit of a cross roads. I have two potential options as regards starting a self drive adventure day project.
The basic gist being I have 3 cars following a lead car (me) doing approximately 200 miles on a self drive day trip. The aim is to experience some great English and welsh roads allowing the drivers to take an equal turn in the 3 vehicles throughout the day with a pub lunch included. I'm am based in the North West so something around the Evo triangle would be the aim.
Most experience day's seem to be centred around track day's but that's not really my sort of thing. I'd much rather hit the roads and have hours of B road enjoyment rather than driving a few laps round a track for the same price. I'm sure there are plenty of people with the same thought.
I have the option of going down the route of a sports car day with the 3 likely vehicles being an elise, cayman S, (3rd TBC maybe a Z4m) which would be a lot more cost effective whilst still offering a great experience.
The 2nd option would require double the budget and be more performance cars base with the likely vehicles being a Maserati Granturismo, Vantage V8 and possibly a Carrera S or Lotus Europa.
Obviously the main sticking point is insurance. I would approximate around 5,000 miles per year per car but no idea who could offer a reasonable insurance package or it would simply wipe out the idea before it even starts. If I'm looking at insurance more than 6/8/10k then it simply isn't viable.
Does anyone have any suggestions of who to use insurance wise?
It's not a business I would be looking to scale due to other commitments but the ultimate aim is that I get to run cars I love at basically no cost. If I make a bit extra than great but that would just be a bonus.
I suppose the angle is that they're my cars and not just rental cars chucked in a warehouse and thrashed by every tom dick and harry so well looked after and maintained.
Any feedback other than insurance would be welcome and if you or anyone you know maybe interested in such a day.
Thanks
Edited by davswilson on Friday 24th February 12:43
Edited by davswilson on Friday 24th February 12:44
I think you might be stuck - on cost, even if you can get it.
I have begun to look into the possibility of starting a sport / supercar rental business as another PH'r did about 5 years ago. I have the advantage that I already own two cars which I think would rent fairly well, and could certainly add a third fairly quickly.
I realised the most significant hurdle was likely to be insurance, and I contacted the broker I know the previous PH'r used. They got back to me this morning and told me that they do not deal with any insurance companies who will take on new business self drive hire.
I will try other brokers to see if I can find anybody - but even if I can, I'm wary about starting something where it's so hard to get insurance that you could essentially be put out of business if your insurer suddenly said : We don't want to do this anymore.
But - FYI - the estimate I was given by the broker I contacted was that if I could find insurance, it would likely be in the £3.5k - £4k per car per year (that's for a 360 & V8 Vantage, but even if you were using less premium cars, I doubt you'd get below about £2.5-£3k per car - even if you can find somebody to insure you.
I think that you and I are both a couple of years too late to the self drive business game!
I have begun to look into the possibility of starting a sport / supercar rental business as another PH'r did about 5 years ago. I have the advantage that I already own two cars which I think would rent fairly well, and could certainly add a third fairly quickly.
I realised the most significant hurdle was likely to be insurance, and I contacted the broker I know the previous PH'r used. They got back to me this morning and told me that they do not deal with any insurance companies who will take on new business self drive hire.
I will try other brokers to see if I can find anybody - but even if I can, I'm wary about starting something where it's so hard to get insurance that you could essentially be put out of business if your insurer suddenly said : We don't want to do this anymore.
But - FYI - the estimate I was given by the broker I contacted was that if I could find insurance, it would likely be in the £3.5k - £4k per car per year (that's for a 360 & V8 Vantage, but even if you were using less premium cars, I doubt you'd get below about £2.5-£3k per car - even if you can find somebody to insure you.
I think that you and I are both a couple of years too late to the self drive business game!
Many thanks for the helpful info.
Around 2.5k would be manageable however as you say there maybe that niggling concern that the provider may pull the policy from under you leaving you and the business exposed.
It seems like a tough game to make money in and the more you make the more is taken away. For example the more miles you do the more maintenance the vehicles require and anything remotely exotic like a 360 the mileage will impact the value so the money you put in one pocket is coming out of the other.
I'd probably budget on 1 day trip every 14-21 days so keeping the new bookings coming may prove difficult especially doing it on part times basis.
I think further thought is required as it just may not be viable. As I said for me it's more about the business wiping it's face rather than a master plan to make a mint.
Around 2.5k would be manageable however as you say there maybe that niggling concern that the provider may pull the policy from under you leaving you and the business exposed.
It seems like a tough game to make money in and the more you make the more is taken away. For example the more miles you do the more maintenance the vehicles require and anything remotely exotic like a 360 the mileage will impact the value so the money you put in one pocket is coming out of the other.
I'd probably budget on 1 day trip every 14-21 days so keeping the new bookings coming may prove difficult especially doing it on part times basis.
I think further thought is required as it just may not be viable. As I said for me it's more about the business wiping it's face rather than a master plan to make a mint.
I know the business model for most supercar hire companies is that actually, they don't own most of their cars. They do own a few - and you need to have at least one or two to start with - but a lot of the fleet are actually private owners renting out through the business.
The business and the owners then get a cut (although I don't know what % each). I guess this works for both - the business takes the hit of running costs (providing insurance, credit checks etc) - but they're not devaluing stock or paying for the maintenance. The owner doesn't have to shell out for the costs of insuring etc - but as long as it's not going out every weekend hopefully makes enough money to mean he can at least break even and run the car "for free". There are usually strict mileage limits (100 a day) so they shouldn't get too mileage heavy even if they go out most weekends.
Obviously with the kind of business you're proposing, I don't think using other peoples cars would necessarily be viable.
The business and the owners then get a cut (although I don't know what % each). I guess this works for both - the business takes the hit of running costs (providing insurance, credit checks etc) - but they're not devaluing stock or paying for the maintenance. The owner doesn't have to shell out for the costs of insuring etc - but as long as it's not going out every weekend hopefully makes enough money to mean he can at least break even and run the car "for free". There are usually strict mileage limits (100 a day) so they shouldn't get too mileage heavy even if they go out most weekends.
Obviously with the kind of business you're proposing, I don't think using other peoples cars would necessarily be viable.
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