Do I Need Sports Car Insurance?

Do I Need Sports Car Insurance?

If you drive a vehicle your insurer designates as a sports car, you'll probably need sports car insurance.

Because sports cars are built for speed and performance, drivers are more likely to be involved in a serious accident, increasing an insurer's loss risk. Sports cars also have specialized parts that are more expensive to repair or replace. Having sports car insurance helps protect your finances if you experience a loss.

Although there's no universal definition of a sports car, vehicles with the following characteristics typically qualify:

• Engine: Sports cars have larger engines with more horsepower designed for speed, not taking your kids to soccer practice.
• Size: Because sports cars are built for performance, they're smaller and weigh less than other vehicles, making them less safe.
• Two doors: Whether you're driving a coupe or convertible, sports cars often have only two doors (instead of four).

Types of Sports Car Insurance Coverage

You can get the same types of car insurance coverage for a sports car as you can for other vehicles. However, you may want to consider higher policy limits and specialized coverage for added protection. The following can help you meet your state's minimum insurance requirements and safeguard your finances if you're in an accident.

Liability

Nearly every state requires drivers to maintain liability coverage, which pays for injuries and property damage you cause to others. It also covers your legal fees if someone sues you after an accident.

Collision

Collision coverage pays for repairs to your vehicle. You can file a collision claim if your car is damaged in an accident you cause or if you're hit by a driver who doesn't have insurance or leaves the scene before giving you their insurance information.

Collision isn't required by law but lenders usually require it if you have an auto loan or lease.

Comprehensive

Comprehensive insurance covers non-crash-related damage to your vehicle, including damage caused by severe weather, falling objects, theft, vandalism and more.

Like collision, it's optional unless you have a loan or lease.

Medical Payments (MedPay)

Medical payments coverage is optional (in most states) and helps pay your medical bills if you're injured in an accident. It applies no matter who is at fault and is available in states that don't have no-fault insurance systems.

Personal Injury Protection (PIP)

Personal injury protection pays for your medical bills, lost wages and other accident-related costs after a crash, regardless of who causes it. PIP is required in states with no-fault insurance laws, where drivers must file injury claims with their own insurance companies, no matter who is at fault.

A few states with at-fault insurance systems also require it, and it's available as an optional coverage in others.

Uninsured/Underinsured Motorist (UI/UIM)

Even though most states require drivers to maintain a minimum amount of car insurance, 1 in 3 drivers was uninsured or underinsured in 2023, according to the Insurance Research Council.

Uninsured/underinsured motorist covers your accident-related injuries and property damage if you're hit by a driver who doesn't have insurance or whose policy limits are too low to cover the damages. You may also file a UI/UIM claim with your insurer if you're hit by a hit-and-run driver.

Custom Parts and Equipment

Your base policy won't cover aftermarket changes you make to your car, such as installing a state-of-the-art sound system or getting custom wheels. Custom parts and equipment covers modifications up to the policy limit.

Tip: Add-ons like gap insurance and new car replacement coverage provide additional financial protection for sports car owners. Optional coverages vary by insurer, but they may be worth exploring, since repair and replacement costs for sports cars tend to be high.

How Much Is Insurance for a Sports Car?

Because sports cars have higher repair and replacement costs, increased theft rates and lower safety ratings, they typically cost more to insure. However, rates vary significantly by make and model, with the average cost of full coverage ranging from $2,688 to $6,060 per year, according to car ownership site Jerry.

While the make and model of the car you drive plays a major role in determining your insurance premium, many factors affect car insurance rates, including your driving record, age, where you live, your credit history and more.

How to Get Sports Car Insurance

The process for buying car insurance for a sports car isn't much different from insuring any other type of vehicle. Here's what to do:

1. Shop around. Both traditional and specialty insurers cover sports cars. However, traditional insurance companies may only insure vehicles worth up to $150,000. If yours is worth more than that, you'll probably need to work with a specialty insurance company. Shopping around allows you to compare coverage options among insurers.
2. Select your coverage and policy limits. You may not need every available coverage an insurer offers. Choose the types and policy limits that provide adequate financial protection based on the cost of your vehicle, the assets you need to protect and your current financial situation.
3. Get quotes. Reviewing quotes from multiple insurers helps you get the lowest rate you can qualify for.
4. Choose the policy that meets your needs. When selecting a policy, it's important to balance affordability with the coverage types and policy limits necessary to safeguard your financial health.

How to Save on Sports Car Insurance

Insuring a sports car can be pricey. Here are some tips to lower your rate:

• Increase your car insurance deductible. Opting for a higher deductible often reduces your premium, but you'll have to pay more out of pocket if you need to file a claim. Weigh the benefit of saving money upfront against the potential need to cover higher expenses later.
• Ask about discounts. Many insurers offer various discounts to help drivers save. Common ones include bundling, multi-car, safe driver, low mileage, autopay, anti-theft, continuous coverage and many more.
• Consider usage-based coverage. If your sports car isn't your everyday vehicle, consider a usage-based policy that charges you based on the number of miles you drive.
• Improve your credit. Most states allow insurers to consider a driver's credit-based insurance score when calculating their premium. Improving your credit could help you qualify for a lower rate.

The Bottom Line

Auto insurance is a necessary expense for nearly every driver. If you're thinking about buying a sports car, get estimates for the cost of coverage before you make your purchase to ensure it fits into your budget.

Experian's free auto insurance comparison tool helps simplify the process by providing quotes from multiple providers at one time. You'll be able to compare coverage, apples-to-apples, and see how you can save.