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Sports Car Insurance for Your Ride

Written by Todd Clay. Posted in Definitions, Research Last Updated: 03/23/2011

Things to consider when insuring an exotic, high performance, or other sports cars – such as raised limits, stated value, and more.

convertible sports car driving on sunny day

Don't forget coverage for your sports car before you drive off the lot.

There isn’t that much difference between insuring a sports car and any other car. But there are special considerations when dealing with sports car insurance.

In most cases the basics remain the same. All sports cars need to be insured to satisfy state liability requirements and any lienholder requirements for full coverage. This is particularly true if a sports car is intended to be driven rather than just looked at.

Raising Limits On Sports Car Insurance

Sports cars aren’t cheap. Insuring them isn’t cheap, either. Most companies consider sports cars to be significantly higher-risk models compared to run-of-the-mill SUVs and sedans. Premiums can therefore be quite expensive, even for low-risk drivers. This has nothing to do with the color of the car (the notion that a red sports car costs more to insure is a myth), but with the model itself.

Also, insurance costs may vary widely among different models of sports cars. For instance, high performance car insurance can be very expensive, while car insurance for other vehicles is cheaper. Each car and driver is quoted differently. Rates can also vary greatly between companies on higher-end vehicles – that’s why you should shop your rate.

You should also keep liability limits on actively driven sports cars high higher than state-mandated minimums. Sports cars attract attention across the board. This attention is not always welcome. If your sports car is in an accident – especially if you’re at fault – you are more likely to face litigation than if you just drove a Ford Focus. If that happens, you’ll be glad you had those higher limits.

The same holds true for material damage. Even when a sports car is paid off and the bank no longer requires full coverage, there’s probably a lot of intrinsic value in the car. Keeping full coverage after payoff is usually a good idea.

Consider Stated Value on Your Sports Car

Traditional sports car insurance may not be enough for older, collectable sports cars or expensive high-end models. For a typical auto insurance policy the vehicle’s value is determined by blue book and other market-driven factors. This may not translate well for classic cars or exotic models where a stated value policy may be more beneficial. In such a case, classic car insurance or an exotic car policy may be a better choice.

There are special considerations for these policies as well. For example, a classic car insurer may decline to insure a vehicle that is regularly driven, even if it qualifies otherwise. Consult your agent or broker for more information.

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Todd Clay

Todd Clay is a former insurance agent with the largest insurance company in the United States. He earned his Bachelor’s from the University of Texas. He's worked in several fields but has specialized in insurance, financial-related information, and technology. He blogs at Car Insurance Guidebook. Connect with Tood on Google+

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