If you are drawn to the allure of a shiny, fast sports car, you might want to consider getting robust car insurance to protect your investment in your vehicle.
With their high-performance engines and athletic designs, sports cars can offer some of the most incredible driving experiences out there. However, the added horsepower means many car insurance companies might be less eager to insure them. Sports cars are often more expensive to repair or replace, which in turn can make insuring them more expensive.
Other factors that play a role in most states include your age, credit rating and your ZIP code. And contrary to popular belief, the color of your sports car has no bearing on rates.
What is sports car insurance?
Sports car insurance works similarly to standard car insurance in which drivers can opt for third party, third party, fire and theft or fully comprehensive cover.
However, this kind of policy comes with added extras that are specific to a car’s high value, features and high performance – such as damage to soft top roofs on the vehicle, or to cover any modifications that may have been made to the car.
What do insurers consider to be a sports car?
The definition depends on the insurer. That said, generally high-performance cars such as GTs, coupes, roadsters and even some sporty hatchbacks could fall into the sports car category.
Other types of car that could be considered sports cars include two-seater cars, cars with a lower suspension (low to the ground), cars in higher insurance groups (more on this below) and cars with bigger engines, designed for high speeds or those that use advanced tech.
What insurance group are sports cars in?
Insurers put all makes and models of car into car insurance groups which go from 1 to 50. Where a particular car fits will be defined by its value, security, safety and power or performance.
The group your vehicle belongs to determines the risk it poses for insurance purposes, which in turn affects its insurance premium. The higher the group, generally the more the policyholder must pay for cover.
As sports cars tend to cost more (be of a higher value) and have bigger engines and higher performance they tend to fall into the highest insurance groups. Most sports cars will be in group 30 or above, for example. Some older, or less powerful, sports cars may come into lower groups.
What coverage do you need for a performance car?
While a licensed insurance agent can work with you to find the best coverage for your needs, the general rule of thumb with auto insurance is that you start by considering your assets and what level of financial risk you are willing to assume. Because sports cars tend to have higher-end features, specialty parts and other costly components, you may want more well-rounded coverage to financially protect the vehicle in case of damage.
You may also want to consider purchasing liability coverage limits above your state’s minimum requirements.
The following coverages can be considered when purchasing your sports car insurance policy:
- Collision and comprehensive insurance: Collison and comprehensive insurance, two coverage types that make up what is commonly known as full coverage car insurance protect you financially against repairs or replacement of your sports car after a covered loss.
- Personal injury protection or medical payments insurance: With personal injury protection (PIP) or medical payments insurance, your insurer will help cover the cost of medical expenses for you and your passengers, regardless of who is found to be at fault in an accident. If you live in a no-fault state, PIP is most likely required.
- Gap or new car replacement insurance: Gap coverage may be of interest to drivers financing their brand new sports cars, as it will cover you if you owe more on the car than your insurance company would pay to replace it. With new car replacement coverage, you are able to recover the cost of buying a replacement vehicle of the same make and model.
Outside of your state and lender requirements, there are no additional requirements for sports car coverage that drivers must meet. Instead, it is up to sports car owners to ensure they have the breadth of coverage necessary for protecting their assets, as well as for meeting or exceeding their state’s minimum insurance requirements.
Consulting with your insurance agent can help you understand what coverage limits and add-ons are available to help further protect your financial stake in your luxury vehicle.
What does sports car insurance cover?
Sports car insurance can offer the same coverage as standard car insurance, plus add-on extras or increased limits for some cover that is specific to high-performance or sporty car models.
This is likely to include, for example:
- Damage to soft-top roofs
- Malicious damage by vandals
- Modifications that may be made to the car, to improve performance for example
- Track days – cover if the driver wants to race their car on a private track
- Enhanced personal accident cover – extra financial protection in case of injuries
- Driving abroad – cover if you want to take your sports car to the continent.
How much does sports car insurance cost?
How much you’ll have to pay to insure your sports car will depend on many variable factors including:
- Your age and driving history (number of years with no claims). Younger drivers and those with less driving experience are likely to be charged higher premiums
- The make, model and value of your car. More valuable and higher-performance cars cost more to insure than cheaper makes and models
- Where you live and your occupation. If crime rates are high in the area where you live you’ll have to pay more to insure your sports car. Certain jobs can also push up the risk factor for insurers and may increase your premium, particularly if you use your car to drive to work or in your job
- How many miles you’ll drive. The more you drive in a year the higher your premium
- Where you’ll keep your car (in the day and at night). If you park your car in a locked garage at night this is likely to reduce your premium, compared to if your car is parked on a public street.
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 can make the premium more expensive. How much higher your premium will be than the national average for a standard sedan will depend on your geographic location. It also depends on your marital status, specific vehicle make and model, credit history (in most states) and driving history.
Average annual car insurance rates for sports cars vs. standard cars
| Make/model | Annual full coverage | Annual min. coverage premium |
|---|---|---|
| BMW330i | $2,513 | $598 |
| Dodge Challenger | $2,483 | $641 |
| Dodge Charger | $2,824 | $668 |
| Ford Mustang GT | $2,488 | $602 |
| Toyota Camry | $2,014 | $622 |
Car insurance for sports cars by model
BMW 330i
The 330i is the most affordable of BMW’s 3-series vehicles, with a starting MSRP of $42,245 for the 2021 model. However, this sporty sedan still costs nearly $500 more per year to insure with full coverage than the average vehicle.
BMW itself is a German brand, and today produces its vehicles in Germany, China, South Africa, Mexico and the U.S. Shipped-in repair parts can drive up insurance costs. RepairPal estimates that, on average, BMW 330i owners spend $748 per year on vehicle maintenance. This is nearly double the cost of annual Camry repairs.
Annual full coverage premium: $2,513
Annual minimum coverage premium: $598
| Car insurance company | Annual full coverage premium | Annual min. coverage premium |
|---|---|---|
| USAA | $1,452 | $328 |
| Erie | $1,572 | $394 |
| Nationwide | $1,656 | $542 |
| Auto-Owners | $1,656 | $323 |
| Amica | $1,661 | $396 |
Dodge Challenger
Dodge Challengers may have a retro look, but the newer iterations are outfitted with modern features like backup cameras, collision warnings and blind spot monitoring — most of which are included in the base model with a starting MSRP of $31,045. While these safety features in theory help lower the Challenger’s insurance costs, they may be outweighed by its lackluster safety ratings.
The Institute for Highway Safety (IIHS) rated the 2021 Challenger in five crashworthiness categories. Of these five, it earned two “good” scores, while the rest were only average or marginal.
Annual full coverage premium: $2,483
Annual minimum coverage premium: $641
| Car insurance company | Annual full coverage premium | Annual min. coverage premium |
|---|---|---|
| Nationwide | $1,511 | $525 |
| Auto-Owners | $1,512 | $324 |
| USAA | $1,528 | $372 |
| Erie | $1,620 | $480 |
| Amica | $1,717 | $396 |
Dodge Charger
Sports car fans who like the Challenger’s old-school-cool muscle car look but prefer more passenger space may look to the Dodge Charger. Although the Challenger and Charger have comparable starting MSRPs — $31,045 and $32,720, respectively — the Charger costs more to insure on average.
Its manual-only transmission and zippy V8 engine options could indicate to an insurer that the person behind the wheel is more likely to engage in reckless driving behavior, such as speeding.
Annual full coverage premium: $2,824
Annual minimum coverage premium: $688
| Car insurance company | Annual full coverage premium | Annual min. coverage premium |
|---|---|---|
| USAA | $1,612 | $363 |
| Nationwide | $1,627 | $594 |
| Auto-Owners | $1,650 | $324 |
| Erie | $1,726 | $515 |
| Mercury | $1,943 | $531 |
Ford Mustang GT
With a starting MSRP of $37,480, the Ford Mustang GT has the second-lowest average full coverage premium, and for lowest minimum coverage. Like the Dodge Charger, the Mustang GT is outfitted with a powerful V8 engine that may tempt drivers to treat the highway as their personal racetracks.
However, its flawless five-star safety rating from the National Highway Traffic Safety Administration (NHTSA) could help drive its insurance rates to a more affordable level.
Annual full coverage premium: $2,488
Annual minimum coverage premium: $602
| Car insurance company | Annual full coverage premium | Annual min. coverage premium |
|---|---|---|
| Erie | $1,398 | $420 |
| Auto-Owners | $1,532 | $325 |
| Nationwide | $1,581 | $510 |
| Farmers | $1,615 | $534 |
| USAA | $1,634 | $333 |
How can I cut the cost of sports car insurance coverage?
There are lots of ways you can bring down the cost of your car insurance, even if you have an expensive or powerful car.
- Think about mileage – if you can agree to drive your car less you may be able to bring down the cost of cover. But be honest with the insurer about your car usage
- Security features – if your vehicle is fitted with high-quality security devices, immobilizer, and alarms, for example, this can reduce the premium. Check with the insurer which security features are approved
- Safe storage – parking a car in a locked garage will mean you’ll pay less for car insurance than if you have to park on a road. Where possible try to store your sports car safely
- Increased excess – in the event you need to make a claim the excess if the first part of the claim which you, the policyholder, must cover (effectively it is deducted from the insurer’s payout to you). By agreeing to pay a higher excess on potential claims you can usually drive down your premium – but remember you’re taking on more of the risk with this
- Additional driving qualifications – some insurers will reduce your premium if you have attended the Pass Plus driving course. This is only usually appropriate if you’ve recently passed your driving test and want to demonstrate to insurers that you have a higher level of confidence on the roads.
As with all insurance shopping around and comparing quotes from different providers, remembering to check the excess and any limits and exclusions on cover, is the best way to find the right cover for you at the best price.
Recommended Articles
- How Much Is Car Insurance in Florida: Detailed Price Guide
- Nissan Car Insurance: Average Cost & How To Get It
- What Is Liability Car Insurance: Meaning & What It Covers
- Grundy Classic Car Insurance: Coverage, Cost & Review
- Best Car Insurance for New Drivers
- Car Insurance With No License: Can You Get It & How?
References
