High-performance sports vehicles are a source of pride and joy for many Canadian drivers. But there's a cost to accelerated speeds and sleek designs when it comes to buying car insurance. So, what exactly do auto insurance companies in Canada consider a sports car? Stick around for more information.
Classification of a sports car
Unfortunately, in Canada, there isn't a specific set of guidelines or universal definition to classify what is and what isn't a sports car when it comes to insurance purposes. However, there are some features that insurance providers will look for when customers renew their auto insurance.
Here are a couple of attributes that an auto insurance provider will consider to be a sports car:
- Sports cars tend to have a higher horsepower and torque than a standard vehicle.
- Their acceleration capabilities, often measured by 0 to 60 mph, will outperform the average vehicle.
- Exotic cars and higher-performance vehicles often have a two-door coupe design, but this isn't always the case.
- If your vehicle is a BMW, Mercedes, Lexus, Porsche, or other luxury vehicle brand, your insurance provider will likely consider your vehicle a sports car, regardless of the vehicle type you have.
- High-performance cars will have higher repair and replacement costs than the average vehicle.
Ultimately, whether or not your car is considered a sports car is up to insurance companies. So, when it's time for a renewal of your auto insurance, make sure you speak with different insurance companies to see what type of coverage options they offer for your specific vehicle.
How do you tell if a car is a sports car?
Generally speaking, sports cars have a sleeker design and are able to accelerate quickly compared to standard vehicles. You might also have a sports car if you drive a BMW, Porsche, Mercedes, or other luxury brands. If you're unsure whether or not you drive a sports car, we recommend speaking with the dealership from which you purchased your vehicle. You could also check the instruction manual that comes along with the car when you purchase it.
Understanding sports car insurance
In reality, sports car insurance is quite similar to any other type of insurance policy, given that all drivers in Canada are mandated by law to have car insurance if they intend to operate a vehicle on public roads.
Mandatory car insurance in Canada
As we mentioned, all drivers need car insurance, whether or not they drive a sports car or not. However, the mandatory minimum coverage for these policies will vary depending on what province or territory you live in. Mandatory sports car insurance in Ontario includes:
Third-party liability coverage
Third-party liability coverage provides drivers financial protection in the event they are found liable for injuring another person or causing damage to their property. This sports car insurance will cover the cost of medical expenses, hospital bills, funeral costs, lost wages, and legal fees if a lawsuit is filed against you.
Accident benefits
Accident benefits insurance provides coverage to you and your passengers if you are involved in an accident, regardless of who is found at fault. This sports car insurance will cover the cost of medical bills, income loss, and other associated fees that are related to the occurrence.
Direct compensation - property damage
Direct compensation - property damage is only mandatory in some provinces, including Ontario. This sports car insurance is meant to help drivers during the aftermath of a collision if they are not found at fault. With this coverage, you'll be able to deal directly with your own insurance company for compensation rather than having to communicate with the other driver's insurance provider.
Uninsured automobile coverage
In the event that the policyholder gets in a collision with an uninsured or underinsured driver, uninsured motorist coverage kicks in. Depending on your insurance company, it may also cover you if you're involved in a hit-and-run accident where the other driver leaves the scene.
Optional sports car insurance
Beyond mandatory sports car insurance, there are optional policies available you may want to think of, especially if you're driving a high-value vehicle. Here are some optional coverage policies for your sports car:
Comprehensive coverage insurance
Unexpected and non-collision-related vehicle damage is covered under comprehensive car coverage. This covers run-ins with animals, theft, vandalism, and severe weather conditions such as hail and high winds. Sports cars can benefit from comprehensive insurance because they are desirable targets for criminals and may be more susceptible to specific risks because of how they are built.
Collision coverage
Regardless of who is responsible for the accident, collision insurance pays for the expense of replacing or repairing your vehicle.
Because of how sports cars are built and their higher price tag when it comes to repairs, having collision coverage is an absolute must-have, as it can prevent you from having to pay hundreds to thousands of dollars in repairs or replacements out of your own pocket if damage occurs.
Accident forgiveness
Lastly, another optional addition to car insurance, accident forgiveness protects the policyholder against rate increases after their first at-fault collision. Ultimately, it's a forgiveness benefit that keeps the driver's insurance from going up following an incident.
Because of their speed and performance, sports cars are considered to have a greater accident rate. Therefore, if you're a first-time driver or have never been in an accident, accident forgiveness is beneficial as it can save you from paying a higher insurance rate in the event you do get into an accident in the future.
For the best coverage for your high-performance car, we suggest speaking directly with your insurance company. They will be able to give you a more accurate estimate when it comes to your insurance costs based on your unique circumstances and vehicle.
Why are sports cars expensive to insure?
If your car is considered a sports car by your insurance company, you will automatically need to pay more for insurance than traditional vehicles. So, why is this? Well, there's a couple of reasons for this:
Overall speed and high-performance levels
Sports cars have stronger engines and optimal acceleration, meaning they can go faster than the average vehicle. Because of this, sports cars are more of a risk on the road and are often involved in car accidents, which costs insurance providers more money at the end of the day.
Increased risk of being in accidents
As we just mentioned, because there may be a more significant chance of accidents and risky driving behaviour among those who have a sports car, your car insurance company is going to charge you more than other motorists because you are deemed a risk to insure.
Cost of repairs
Sports cars have a higher price tag when it comes to repairs and replacements. Therefore, in the event that you get into an accident and file a claim with your car insurance company, despite you having to pay a deductible before your coverage kicks in, the cost of fixing or replacing your vehicle is still going to cost more.
Risk of theft
Thieves target certain luxury cars because of their high resale value and visual appeal. They often have fewer safety features as well. Therefore, when getting your sports vehicles insured, drivers will need to purchase additional coverage to protect their cars from theft, which, in turn, will increase their insurance rates.
Driver demographics
Sports cars tend to attract younger drivers, who have higher accident rates statistically. Because of this, your vehicle type, along with having a shorter driving record and experience behind the wheel, will make insurance companies more cautious about providing coverage. If you want to save money on your sports car insurance, consider doing the following:
- Install an anti-theft device on your vehicle to deter burglary and vandalism.
- Install other safety features on your high performance vehicle such as anti-lock brakes, dash cams, and other devices.
- Maintain a clean driving record by following the speed limit, practicing safe driving, and following traffic laws at all times.
- Increase your deductible amount.
- Ask your car insurance provider whether you qualify for any discounts.
- Bundle your insurance policies with the same provider.
- Pay for your sports car insurance on an annual basis to save money by preventing monthly administrative fees.
How much does sports car insurance cost?
The cost of your sports car insurance will depend on numerous factors. The average rates really depend on which province or territory you live in, given that insurance coverage is not federally regulated. Your insurance premium will also depend on the insurance company you choose to work with, as each provider uses a different scaling system to calculate insurance costs.
Regardless, here are some of the most common factors an insurance company will look at when considering your insurance rates:
- Where you live in Canada (those in urban areas tend to pay more than drivers in rural areas).
- Your driving record and driving history (safe drivers with a clean driving record pay less than those with violations and claims).
- Your insurance claims history (the more claims you file, the more money you'll pay for your sports car coverage).
- Your age and driving experience (young drivers will pay more than older, more experienced motorists).
- The insurance coverage you purchase and your policy limits (additional coverage will cost more).
- The deductible amount you select for your car insurance.
- The make and model of vehicle you drive (traditional vehicles with lower repair costs are more affordable to insurance than high-performance sports cars).
Before purchasing insurance from a car insurance company, make sure to shop around for different sports car insurance quotes so you can compare rates and coverage options.
Will my car insurance rate change if I make modifications to my sports car?
Yes, it's highly likely that sports car owners who make modifications to their vehicles will pay higher insurance premiums. Many insurance companies view modifications to vehicles as a higher risk factor.
For example, any modifications that improve your vehicle's performance, modify the vehicle's appearance, or other alterations that affect the value of the car itself put the insurance company in a position where they will need to pay more money if you file an insurance claim. So, to offset this higher risk, your insurance premiums will increase.
Is temporary insurance available for my sports car?
Absolutely, you can purchase temporary sports car insurance for your vehicle. Just like you can purchase temporary insurance coverage for your conventional vehicles, temporary insurance is also available for sports cars. To purchase temporary insurance, you'll need to speak directly with your insurance company to learn more about the options available to you.
Get a high-quality car insurance with BrokerLink!
At BrokerLink we specialize in helping customers get affordable sports car insurance rates, without them having to sacrifice their level of coverage.
With years of experience and locations across Canada, there's a good chance we might be in your neighbourhood! If you're in the market for sports car insurance, feel free to drop by one of our locations to work with an insurance broker from our team in person. If you can't make it in person, don't hesitate to give us a call!
Alternatively, you can compare sports car insurance quotes from the comfort of your own home with our free online quote tool!
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