How do car insurance companies define sports cars?
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UPDATED: Mar 13, 2020
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While a person’s driving history plays a valuable role in determining the cost of their insurance, other factors help shape the overall cost of premiums. For example, the state where insurance is offered and the type of car being insured will play a major role in deciding how much the insurance policy will cost. Certain types of vehicles will cost more than others to insure, and people looking to save money on car insurance may wish to purchase more affordable vehicles in the future.
Some of the most expensive cars to insure are luxury vehicles and sports cars. This is because these cars are expensive to repair and may sustain more damage than other types of vehicles. In the case of sports cars, there is also an inherent risk that drivers may be more prone to driving recklessly in a vehicle that’s capable of high speeds and precise handling; even if you never drive above the speed limit in your sports car, your insurance may still charge you extra for owning it.
Why Some Cars Cost More than Others to Insure
Auto insurance companies cannot make a profit if they don’t collect more in premiums than they pay in claims throughout the life of a policy. This means that they must be prepared to replace the vehicle if it sustains substantial damage. They must also be prepared to cover basic repairs and body work following auto accidents. While not all insured vehicles will be involved in accidents, insurance companies must collect enough in premiums to compensate for the cost when an accident does occur.
Some cars are more affordable to repair than others. Cars that are foreign-made will cost more than those that are domestic due to the cost of parts and specialized labor. Luxury vehicles will cost more to repair for the same reason. Sports cars may be not only expensive but also more delicate than other types of vehicles. Because sports cars are designed to be lightweight, they may be made out of fragile or difficult-to-repair materials such as fiber glass rather than steel. This causes the cost of insurance to raise substantially.
Sports cars are more likely to sustain damage in accidents than larger vehicles. They’re also perceived as more likely to be involved in a collision due to their speed and size. Drivers might be more prone to driving them irresponsibly, and they may not be as visible on the highway. For all of these reasons, sports cars are some of the most expensive cars to insure.
How Do Insurance Companies Define a Sports Car?
Different insurance companies will define sports cars in different ways. This means that some companies will consider the vehicle a sports car while others may classify it as a collector’s car, luxury vehicle or just a regular commuter car. The different classifications will lead to substantial premiums differences from one company to another and is a great reason to always comparison shop between multiple companies when purchasing a policy. In general, some of the following conditions are examined when assessing if a car is a sports car:
- Number of doors and overall size of vehicle
- Size and power of the engine
- Any after-market adjustments to make the vehicle more high-performance
- If the maker is a popular sports car maker, like Ferrari or Porsche
- What material the vehicle is made from
- If it was sold with high-performance trim
If in doubt whether your vehicle will be considered a sports car, regular commuter car or something else, it’s a good idea to check with your insurance company. They should be able to provide you with a breakdown of your policy and offer a quote based on different variables. If you do not already have car insurance, you can comparison shop online for an insurer that will provide affordable coverage for the type of vehicle that you own. This will enable you to find the best possible deal.
For people searching for a new car, be sure to bear the cost of insurance in mind when procuring an automobile. In addition to the up-front costs of purchasing a vehicle, the costs of car ownership can go up substantially when maintenance and insurance costs are considered.
If you do choose to purchase a pricier car, you may be able to reduce the cost of auto insurance by increasing your deductible, dropping some of the coverage or taking advantage of discount programs for safe drivers and good students. Check with your insurance company to see what options are available to you that will help reduce the cost of your policy.