Sports Car Owners Seeking Affordable Insurance

If you are among Canada’s motorists that drive a sports car through the country’s vast network of roadways, you might already know of many distinctions between this vehicle type and other categories of cars. Sleek designs, souped-up engines, and enhanced mechanical capacities characterize sports cars. Some of these differences may have a major impact on your insurance premium.

Two Doors vs. Four Doors

First, be aware that insurance companies apply several criteria when classifying cars as of the sports caliber. Specifics vary among insurance companies, but a common criterion is the number of doors. Two-door models are often designated as sports cars. Engine horsepower capacity is also a basis of classification, including customized post-purchase engine modifications. Inquire of your carrier as to its specific performance parameters.

In the realm of sports car insurance, myths abound. We’ve tried to clear up a few of these misconceptions below:

The Myths and Realities of Sports Car Insurance

-Myth: Sports car insurance is available only through specialized carriers.

-Reality: Many insurers do specialize in sports car coverage; however, many conventional insurers also offer sports car policies. Indeed, your premiums may be substantially lower with a conventional insurer than a specialized insurance carrier. As always, comparison shopping pays. An excellent source of information is the dealership from which you purchased your sports vehicle.

-Myth: It’s the same price to insure a sports car as it is a 4-door family sedan.

-Reality: Sports car polices cost more than conventional auto insurance products.

One disadvantage of sports car ownership is increased premiums. Sports car insurance coverage generally costs considerably more than ordinary auto insurance. As with any other insurance policy, sports car insurance is based upon insurers’ relative risk exposure. Long-term statistics have consistently revealed that sports car owners tend to drive at higher speeds and have a higher incidence of accident involvement than other motorists.

-Myth: Choosing the lowest possible deductible is always your best option.

-Reality: As with any other auto insurance policy, sports car coverage premiums increase with lower deductibles. Due to the high replacement and repair costs of sports vehicles, increased premiums of lower deductibles can add up to a sizable amount. A better strategy is to invest the difference in premium cost into a high-yielding mutual fund or other such instrument. If you do incur a loss, the increased out-of-pocket cost of a higher deductible are then easily met.

-Myth: You’ll save money by not telling your insurer about major vehicle alterations.

-Reality: If you make any significant improvements or additions to your sports car, immediately advise your insurance company. Many people make the mistake of keeping the installation of a $5,000 surround sound stereo system a secret from their insurer. The usual motivation for such reticent is raised premiums. This reasoning is erroneous, however. Failure to notify your insurance company will likely result in non-payment of benefits if a loss occurs. Moreover, it could even be construed as insurance fraud!

Most other aspects of sports car insurance is identical to that of traditional automobile insurance coverage. If you are over the age of 30 and have a good driving record, ask for a discount. Practice safe driving while on the road; it will establish a claim-free record to enable your continued enjoyment of tooling away inside your top-of-the-line automotive wonder.