Auto Insurance
7 min read

Why Sports Cars Get Charged More By Car Insurance Companies

Published on
July 21, 2023

Picture this: a shiny sports car with a roaring engine, sharp curves, and unparalleled speed. It's the best example of luxury and performance, but it's also the bearer of one of the most expensive insurance premiums. In fact, sports cars are the most costly to insure out of all of the car models out there in the market.

This might leave you pondering, "Why is insurance for these high-performance vehicles so pricey?" and "What qualifies a car as a 'sports car' in the eyes of insurance companies?" In this blog post, we'll share our answers, diving deep into the world of sports cars and their associated insurance costs.

What Are Considered Sports Cars by Insurance Companies?

There's no universal definition of a sports car. But typically, insurers categorize any high-performance vehicle that prioritizes speed and agility as a sports car.

Are sports cars more expensive to insure compared to regular cars?

The short answer is, yes. But why is this the case? Let's find out.

Why Sports Car Insurance Costs More

When it comes to insurance, ‌costs can be influenced by a variety of factors. In the case of sports cars, some unique factors come into play. For insurance purposes, a sports car is typically defined by its top speed, horsepower, and overall performance. Indeed, horsepower plays a significant role in determining insurance premiums. Cars with higher horsepower tend to reach higher speeds, increasing the risk of accidents. This correlation between horsepower and accident risk is one of the reasons why sports cars carry heftier insurance premiums.

The Role of Car Parts and Repair Costs

Another contributing factor to the high cost of sports car insurance is the cost of repairs. Sports cars, especially luxury models, are often equipped with expensive custom parts and finishes, which drive up the cost of repairs or replacement. This is another crucial factor that makes insurance for sports cars more costly.

Comparing Insurance Costs: Sports Cars vs. Regular Cars

There's a stark difference in insurance costs when comparing sports cars to regular cars. On average, sports car insurance can be up to twice as expensive as insurance for standard vehicles. This discrepancy is due to the reasons outlined above, such as the high repair costs, higher risk of theft, and more.

Factors Influencing Sports Car Insurance Rates

Various factors influence the cost of sports car insurance, including the car's make, model, and year, as well as the driver's age, driving history, and credit score. For instance, younger drivers often face higher premiums due to their lack of driving experience.

The Impact of Driving Record and Insurance Score on Rates

A clean driving record can significantly reduce your sports car insurance premiums. On the other hand, a history of speeding tickets or accidents will likely result in higher rates. Moreover, individuals with high insurance scores, derived from credit history, typically receive lower insurance rates.

Coverage Types for Sports Car Insurance

In the world of insurance, coverage types can vary widely depending on the type of vehicle you own. In the case of sports cars, there are a few unique coverage types you should be aware of.

Understanding Full Coverage Car Insurance

Full coverage car insurance typically includes comprehensive, collision, and liability insurance. This type of insurance is highly recommended for sports cars, given the high cost of repairs and the potential for damage.

Gap Insurance for Sports Cars

Given the high value of sports cars, gap insurance can be a smart investment. This coverage pays the difference between what you owe on your car loan and the car's actual cash value (ACV) in the event of a total loss.

How to Save on Car Insurance For Your Sports Car

Selecting the right insurance provider is key to saving on sports car insurance. It's worth exploring niche markets for sports car insurance and using online tools to compare rates. Some providers offer discounts specifically tailored to sports car owners, so be sure to inquire about these opportunities.

Despite the higher insurance costs associated with sports cars, there are several strategies to reduce these expenses. These include maintaining a clean driving record, taking defensive driving classes, and shopping around for the best rates.

Frequently Asked Questions

Now, let's dive into some common questions that you may have about sports car insurance.

What’s considered a sports car for insurance?

A sports car, in the eyes of an insurer, is typically a vehicle designed for high-speed driving and agile handling. These vehicles often have high horsepower and performance specifications.

Can I get insurance on my sports car if I have tickets and accidents on my driving record?

Yes, but it's likely you'll face higher premiums due to the increased risk you pose.

Are there any discounts available for insuring a sports car?

Yes, some insurance companies offer discounts to sports car owners, particularly if you have a clean driving record, have taken defensive driving courses, or have other policies with the company.

What Are the Cheapest Sports Cars to Insure?

Insurance costs for sports cars vary widely based on their make, model, and specific features. However, lower-end models with good safety ratings can generally be insured for less than high-end or exotic sports cars.

How Does the Insurance Cost for Electric Sports Cars Compare?

Electric sports cars are generally more expensive to insure than their gasoline counterparts. This is due to the higher cost of the vehicles themselves, as well as the higher cost of repairs and replacement parts.

How Much Does Sports Car Insurance Cost on Average?

The average cost of sports car insurance can vary widely, depending on a variety of factors. On average, however, you can expect to pay significantly more for sports car insurance than for insurance for a regular car.

So, while the thrill of driving a sports car might be enticing, it's essential to consider the trade-offs, notably the higher insurance costs. Understanding why sports cars are considered high risk by insurers and knowing the strategies to lower your rates can make owning a sports car more affordable and enjoyable.

About the Author: This article was crafted by the LOOP Marketing Team. Comprising of seasoned professionals with expertise in the insurance industry, our team is dedicated to providing readers with accurate, up-to-date, and valuable information. At LOOP, we're passionate about helping families navigate the world of car insurance, ensuring they get the best coverage at the most affordable rates. Learn more about our mission and values here.

For more insights on auto insurance and other related topics, visit our blog.

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