Sports cars, as expensive as they are to purchase, are equally costly to insure. If you own a flashy sports car, you should be ready to pay a higher premium on your auto insurance than the average motorist who drives a family hatchback.
Why do sports cars attract higher premiums on insurance?
Usually insurance providers hike up the costs of sports car insurance due to three main reasons:
- A fancy car attracts more eyeballs; vandals and thieves are seen to target sports cars more often.
- Since sports cars provide high performance and speed, they are likely to be involved in more accidents.
- The cost of repair and replacement of parts is higher for sports vehicles, when compared to average cars.
Things to keep in mind before insuring your sports car:
- When insuring a sports vehicle you should ensure that the motor insurance plan provides your car the necessary coverage under all circumstances.
- It is best to approach various insurance providers and get multiple quotes, so that you can assess the benefits and finalise on the most appropriate one.
- A money back plan can be added to the cover for additional security.
- If you purchase a from the same provider of your other insurances, there is a possibility that you could get a substantial discount. Enquire about this in advance, and also approach neutral financial websites for comparison of insurance rates and benefits.
How do you get the best rates on your sports car insurance?
There are several ways to drive down the premium of your sports car insurance:
- Resist modifications
Insurers are not usually comfortable with customisations on your sports car, as they are unable to check the quality of the alterations. They also assume that the modifications could compromise the safety of the vehicle. Cosmetic changes to the car also attract thieves on a larger scale. So, you should resist modifications on your sports car, as this will only add to the cost of insurance.
- Install safety devices
The risk of theft can be minimised by installing appropriate safety devices, such as an immobiliser or an alarm to your car. You should also park the vehicle in a locked garage, as parking on the street will attract higher premiums. Some insurance providers complete the insurance process only if the vehicle is equipped with the latest safety features. So, it is important to ensure that your sports car is updated with the requisites before you approach an insurer.
- Maintain limited mileage
Some car owners drive their vehicles infrequently. They can negotiate with insurers for a lower premium by agreeing to drive for only a limited number of miles annually. But they should remember to keep the car insured at all times, in spite of it being parked-up for long durations.
- Increase your deductibles
All car insurance policies come with deductibles, which should be borne by you during a claim. If you increase the deductible on your policy, your premium will be lowered accordingly. But you should be careful to not increase the deductible to such an extent that it becomes unaffordable at the time of a claim.
- Join clubs
Sports car enthusiasts often get together at clubs to share news and views. Club membership also has other benefits, as some insurance providers offer discounts to members of recognised car owners’ clubs.
- Add a named driver
If you add a named motorist to your sports car insurance policy, a driver who is older and has more experience on the roads, the cost of the policy could be greatly reduced. Adding a driver provides a certain level of assurance to the insurance provider. They assume that the older driver would be driving the car at least some of the time, and this reduces the risk of an accident.
A sports car is a very expensive investment. Hence, it is important to ensure that you spend wisely on your car insurance and protect it from damages or theft.
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GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017