What is considered a sports car for insurance purposes?

High-performance vehicles are a point of pride for many Canadian drivers. Whether it’s the acceleration, the handling or simply the look of the car, sports and performance models offer something extra behind the wheel. But when it comes to car insurance, that extra performance often comes with added cost. So what exactly do insurance companies in Canada consider 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. That means two vehicles that look similar or even share the same model name can be treated very differently for insurance purposes. Below, we’ll walk you through what the “sports car” label really means in Canada, how cars are classified, if it varies between provinces and what you can do to save on your premiums.

What “sports car” means for insurers

From an insurance perspective, a sports car isn’t defined just by its body style or branding. It’s mostly defined by its overall risk. Canadian insurers generally price vehicles based on the likelihood and cost of future claims. Industry loss data is used to understand how often specific vehicles are involved in claims and how expensive those claims tend to be.

One of the tools that many insurers rely on is the Canadian Loss Experience Automobile Rating (CLEAR) system, developed by the Insurance Bureau of Canada (IBC). Basically, a vehicle may be treated like a sports car for insurance purposes if it tends to:

• Be involved in claims more often, or

• Cost more to repair or replace after a loss

In other words, it’s not just two-door coupes that fall into this category. This means that some vehicles you may never think of as sports cars, including sedans, hatchbacks and even SUVs with stronger engines or sportier trims, may still cost more to insure.

How do insurers classify sports cars?

There isn’t a single checklist that determines whether a car is officially labelled a sports car. Instead, insurers look at a combination of vehicle characteristics and historical claims outcomes, including:

While these features aren’t limited to sports cars, they’re more common in vehicles that have more power and cost more to repair than the average commuter vehicle. Ultimately, whether or not your car is considered a sports car is up to insurance companies. So, when it’s time to renew your auto insurance, make sure you speak with different insurance companies to see what type of coverage options they offer for your specific vehicle.

Why can similar trims be insured differently?

It’s not uncommon for two trim levels of the same model to have different car insurance costs. Often, this comes down to repair costs rather than driving behaviour. Higher trims may include:

• More expensive parts

• Specialized components

• Technology that increases repair time or cost

As a result, a sportier trim may cost more to insure than a base version of the same vehicle, even if both vehicle models are driven by the same person.

Sports car vs. Sporty car vs. Not

Not every vehicle with a sporty appearance is treated as a sports car by insurers. As you now know, the distinction usually comes down to performance history and repair costs rather than looks. Take a look:

Please note that these examples are for general reference only. How a vehicle is insured can still vary by model year, trim and claims history.

How to check the classification of your vehicle

If you’re shopping for a sporty or performance vehicle, checking how it’s likely to be insured before you buy it can help you get an idea of what your insurance may cost. Here are a few ways to do that:

Start with whatever information your insurer already shares

Some insurers publish general information about how vehicles are grouped or priced. It may give you a rough idea of whether certain models or trims tend to cost more to insure.

Have a conversation with your broker

A broker can look at the exact vehicle you’re considering and explain how it’s typically treated for car insurance.

Look at industry information when possible

There are also industry resources, such as tools published by the IBC, that compare vehicles based on claims history and repair costs. They won’t tell you exactly what you’ll pay, but they can help explain why some vehicles cost more to insure than others.

Compare quotes from another insurer

Asking for a quote both with and without optional insurance coverage can help you see how much the vehicle itself affects the price.

How modifications can affect your insurance

Most sports car owners who make modifications to their vehicles end up paying even higher car insurance premiums. Many insurance companies view modifications to vehicles as a higher risk factor. Some common modification examples include:

• Engine upgrades

• Exhaust upgrades

• Suspension or brake modifications

• Aftermarket wheels or body changes

Any 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 a car insurance claim. So, to offset this higher risk, your insurance premiums will increase. If you plan to modify your vehicle, it’s a good idea to:

• Let your broker or insurer know in advance

• Ask whether you’ll need more coverage

• Keep a copy of any documentation and receipts

Please note that standard auto policies are usually meant to cover the parts that came with the vehicle from the manufacturer. It’s important to let your insurer know about any modifications so they can be added to the policy.

Does your province change how sports cars are insured?

Auto insurance in Canada is regulated provincially and how vehicles are rated can vary depending on where you live. Take a look:

Private insurance provinces

In provinces such as Ontario, Alberta and the Atlantic provinces, auto insurance is provided by private insurers. Each insurer uses its own approved pricing approach, based on industry claims data. Because of that:

• The same vehicle can be priced differently between insurers

• Shopping around can make a big difference in price

• A broker can help you compare and spot better options

Public insurance provinces

In provinces with public auto insurance systems, such as British Columbia, Saskatchewan and Manitoba, vehicle rating is more standardized. While sports and performance vehicles can still cost more to insure, pricing tends to be more predictable. In these provinces, insurers generally:

• Use province-wide vehicle groupings

• Use consistent rating structures

• Offer less variation between providers

What to ask your broker before buying a sports car

If you’re thinking about buying a sportier vehicle, it’s worth having a quick conversation with a broker before you commit, as insurance costs aren’t always obvious at first glance. Here's what you should ask your broker:

Does this trim cost more to insure than the base model?

One of the first things to ask is whether the trim you’re looking at costs more to insure than the base model. Two versions of the same car can look nearly identical, but sportier trims often come with higher repair costs, which can affect premiums.

Are repair costs a major factor for this vehicle?

Another thing to ask is whether repair costs tend to be a major factor for that specific vehicle. Some models are more expensive to fix after a collision, even if the damage is minor. Older cars are sometimes cheaper to insure than newer models because of their lower repair costs.

Are there insurers that price this model more favourably?

You may also want to ask if some insurers price the vehicle more favourably than others. Not every company views the same model the same way and this is where working with a broker can really help.

How would modifications affect your coverage?

If you’re planning to make any modifications, ask how that could affect your coverage. Even small changes can sometimes require updates to your policy. Finally, don’t forget to ask about discounts. Depending on your situation, there may be ways to help offset higher costs.

Are there any discounts that could help offset the cost?

Some insurance companies may offer discounts for safety features like all-wheel drive or performance packages that enhance safety. That’s why some of the cheapest sports cars to insure are those with high safety ratings and anti-theft devices. A broker can walk you through all of this and help you understand how the vehicle fits into your overall insurance picture.

Ways to save money on your sports car insurance premiums

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.

• Ask your car insurance provider whether you qualify for any discounts.

• Increase your deductible amount.

• 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.

Contact BrokerLink today

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 car insurance, visit your local BrokerLink office, call to speak with a broker, send us an email or get started online using our free online quote tool to help get your free sports car insurance quote in minutes.

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