Sports cars might exude high-performance features and sleek design, but what many drivers fail to realize prior to making a purchase is that sports cars have unique insurance requirements.
While the exhilarating ride backed by added horsepower may appeal to adrenaline junkies, insurance carriers do not share the same affinity for what they perceive to be a higher risk. For this reason, insurance for sports cars can be higher than standard car insurance products because your carrier will require you to have specific protections. However, there are steps that drivers can take to reduce the premium on their sports car insurance.
What do insurance companies consider to be sports cars?
Providers have different ways to classify why they consider to be sports cars. Common qualifications include vehicles that:
- Are smaller and lighter than a standard sedan
- Only have two seats
- Have a soft back
Usually, your provider will make this determination by evaluating the vehicle make, model, horsepower, number of cylinders, size and weight.
The threshold your insurance company uses to separate standard vehicles from sports cars as what they consider to be a sports car may not match your definition. For example, you may not think your Toyota is a sports car, but if its horsepower is higher than what your insurance company considers “standard,” you may end up having to pay for sports car insurance.
What coverage do you need for a performance car?
The general rule of thumb with auto insurance is you need to buy enough to protect your at-risk assets. Because sports cars tend to have higher-end features, specialty parts and other costly components, you’ll need more robust coverage to protect the vehicle properly. The following coverages should be considered when purchasing your sports car insurance policy:
- Liability insurance: In some states, insurers place a maximum amount on liability insurance. This can make it so that your liability insurance is insufficient to cover your sports car, should an accident occur. If this is the case with your state and insurance carrier, you may want to explore obtaining a personal umbrella insurance policy to cover your assets.
- Collision and comprehensive insurance: Two of the most important (and expensive) coverages you’ll need to insure your luxury vehicle are comprehensive and collision insurance. These protect you from being financially liable for physical damage to your sports car in the event of an accident. It also covers damage caused by things outside of a car accident, such as natural disaster, fallen objects or theft.
- Personal injury protection or medical payments insurance: With personal injury protection or medical payments insurance, your insurer will cover the cost of medical expenses regardless of who is found to be at-fault.
- Gap or new car replacement insurance: This is an especially good idea for drivers who are leasing or financing their sports cars as it will cover you if you owe more on the car than your insurance company would pay to replace it. Through new car replacement coverage, you’ll be able to recover the cost of buying a replacement vehicle of the same make and model.
Outside of the minimum requirements for insurance specified in your state guidelines, there aren’t specific requirements for sports car coverage that drivers must meet. Instead, it’s up to sports car owners to ensure they have the breadth of coverage necessary for protecting their assets. Always consult with your insurance agent to understand what coverages and add-ons are available to help further protect your luxury vehicle.
How much is insurance for a sports car?
Even if you end up selecting the minimum required coverages for your sports car, you still will pay a higher premium for insurance. This is because sports cars are designed to go faster, making speeding more common (and your policy a higher risk to carriers as a result). Not only that, but insurers also recognize that sports cars have a higher risk for:
- Collision damage
- General safety
- Parts replacement
- Vehicle theft
In addition to a higher risk profile, sports cars have a higher intrinsic value compared to standard sedans. The higher Insured Declared Value (IDV) on sports cars therefore makes the premium more expensive. On average, drivers pay $1,738 for full auto coverage on a standard vehicle. How much higher your premium will be than the national average for a standard sedan will depend on your geographic location, marital status, specific vehicle make and model, credit history and purpose for driving.
How can you save money on sports car insurance rates?
Sports car insurance is more expensive — plain and simple. However, there are some ways in which drivers can reduce their premiums to make their financial obligation closer to what’s considered average. By taking advantage of available discounts through your insurance carrier, you’ll be able to reduce your rates without sacrificing your coverage. The following are some of the most important discounts to watch for when purchasing your sports car insurance policy:
- Good driving: Safe driving programs exist through a number of insurance carriers, providing steep discounts for those who have avoided traffic violations and accidents throughout their driving history. Other providers (like Progressive) allow drivers to install a monitoring device to provide specific savings based on their current driving behaviors.
- Multi-policy discounts: Ask if your insurance carrier offers discounts for bundling coverage on home and auto insurance.
- Safety features: Some insurers offer discounts if your vehicle is equipped with special safety features. Review the list of eligible safety features to see if your car qualifies for a discount.
In addition to the aforementioned discounts, drivers may wish to consider taking on a higher deductible to reduce their premium obligation. However, with the already high cost of sports car components, this may not be the best option if you’re unwilling to foot the bill for specialty parts and repairs.
How is exotic car insurance different?
While they may look similar to the untrained eye, sports cars differ from exotic cars in that exotic vehicles are rarer and have a higher price tag. As a result, many insurance carriers won’t insure them. For example, Progressive won’t insure your vehicle if it’s valued over $150,000. So, anyone who owns a Lamborghini Aventador, Porsche Taycan Turbo S, or any other vehicle valued higher than $200,000 will likely need to seek collector car or specialty auto insurance. There are many providers that offer this type of insurance coverage, including:
- American Collectors
- Geico
- Grundy Worldwide
- Hagerty
- Heacock
- J.C. Taylor
With a specialty auto or collector car insurance policy, you’ll receive more robust coverage to protect your exotic vehicle. Some specialty insurers even offer similar discount programs to their policyholders as standard insurers to help bring down the cost of insuring your exotic car.
Frequently asked questions
What cars are the most expensive to insure?
In general, the more you pay for your vehicle, the more protection you need and therefore the higher your premium will be. It stands to reason, then, that the most expensive cars to insure are those that have a more expensive MSRP to begin with.
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