What cars are considered sports cars for insurance?

12 minute read Published on Feb 1, 2024 by BrokerLink Communications

Side shot of silver sport car

Sports cars, with their sleek design, heart-pounding acceleration, and roaring engines, perfectly capture the adrenaline rush of the open road. But despite all the excitement, there's a feature that’s often forgotten— sports car insurance.

Knowing how insurance companies categorize sports vehicles is essential whether you're an experienced sports car fan or simply thinking about making the transition to a high-performance car. Join BrokerLink as we debrief this topic in more detail.

What counts as a sports car?

Like many other countries, Canada lacks a specific set of standards that formally classify a car as a sports car for insurance or legal purposes. That said, there are some traits and attributes that are frequently related to sports vehicles in terms of insurance rates as well as classification. Here are some common factors that could render your car a high-performance vehicle by an insurance company:

  • High horsepower and torque
  • Acceleration capabilities are often measured by the 0 to 60 mph time
  • Two-door coupe, although this is not a strict rule
  • Compact size and low weight for enhanced agility
  • Association with brands known for producing sports cars like BMW, Mercedes, Lexus, and Porsche

It's crucial to remember that different insurance companies may have different standards for what is considered a sports car, and the criteria may change over time.

In order to evaluate risk and set rates, insurance companies consider various elements, some of which may not be directly related to the traditional attributes of sports vehicles.

Therefore, it's advised that individuals check with their particular insurance company to find out how a given car is categorized and how it could impact Toronto car insurance costs.

Why are sports cars expensive to insure?

Now, you're probably wondering why high-end sports cars face higher auto insurance rates. There are a couple of reasons for this. Let's take a closer look:

Speed and Performance

Sports vehicles have strong engines that can accelerate them to high speeds. They are built for maximum performance. These cars' greater top speeds and performance levels have the potential to cause more severe and common car accidents, which raises insurance costs.

Increased probability of accidents

Because there may be a more significant chance of accidents and risky driving behaviour among drivers of sports cars, insurance prices may increase.

Cost of repairs

Specialized and high-performance parts are frequently installed in sports cars, which can render repairs or replacements more costly in the event of an accident. This means that insurance providers will need to pay more, and why higher insurance premiums offset this elevated cost.

Risk of theft

Thieves target certain luxury cars because of their high resale value and visual appeal. Higher comprehensive insurance premiums, which cover theft and non-collision-related incidents, could arise from this increased risk.

Driver demographics

The insurance prices of sports car owners may additionally be influenced by their demographic profile. Sports cars tend to attract younger drivers, who have higher accident rates statistically. The primary driver's age and driving record will, therefore, be taken into account by insurance providers when determining premiums.

Owners of sports cars need to be mindful of these things and compare insurance rates to get the greatest safety at the lowest possible price.

What does sports car insurance cover?

When it comes to car insurance for your high-performance vehicle in Toronto or any other city across Canada, insurance is mandatory. The minimum coverage standards differ between provinces and territories.

However, it's important to reiterate that it's a severe violation to drive without insurance, and offenders who do so are at risk of fines, licence suspensions, and possibly time in prison. Make sure you buy a current, valid insurance plan for your luxury vehicle that meets provincial laws to prevent these repercussions.

On that note, let’s take a closer look at the different types of auto insurance policies available to you:

Mandatory insurance coverage

Comprehensive insurance

Unexpected and non-collision-related vehicle damage is covered under comprehensive car coverage. This covers interactions 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.

Liability car insurance

Liability car insurance, which pays for property damage and personal injuries the policyholder is held legally liable for in the event of an accident, is mandatory for all Canadian drivers. Owners of sports cars must comply with legal requirements by obtaining liability insurance.

For example, the minimum liability drivers must purchase in Ontario is $200,000. However, most drivers opt to buy a higher minimum to ensure they are completely protected.

Therefore, in order to safeguard their assets in the event that they are held legally liable for an accident, owners of sports cars must have enough third-party liability car insurance due to the likelihood of high-speed collisions and the heightened damage that can result from them.

Uninsured automobile insurance

In the event that the policyholder gets in a collision with an uninsured or underinsured driver, uninsured motorist coverage kicks in. It can be used for hospital bills, lost property, and, at times, even hit-and-run occurrences. Sports cars and other high-performance vehicles carry a greater risk of serious injury in collisions.

For owners of sports cars, having uninsured automobile insurance becomes crucial in order to guarantee coverage in the event that the motorist at fault fails to have insurance or has inadequate coverage to cover the costs of the collision.

Optional insurance coverage

Gap insurance

The "gap" between a vehicle's actual cash worth and the remaining balance on a car loan or lease is covered by gap insurance, also known as guaranteed asset protection insurance, in the event of a total loss, such as theft or a serious accident.

Gap insurance is beneficial for sports vehicles because they often have greater original prices and faster rates of depreciation.

Standard insurance might not pay the entire outstanding loan or lease amount in the event that a sports car is totalled or stolen, leaving the owner accountable for the remaining sum. Owners of sports cars often feel safeguarded financially by having this type of coverage.

Accident forgiveness

An optional addition to car insurance, accident forgiveness protects the policyholder against rate increases after their first at-fault collision. In essence, 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, accident forgiveness may be beneficial. Due to their higher risk profile, sports vehicle insurance rates are already higher.

Therefore, accident forgiveness can be helpful for first-time owners who wish to avoid a significant increase in rates following a single at-fault event.

Collision insurance

Regardless of who is found at fault, collision insurance pays for the expense of replacing or repairing a vehicle in the event of an accident with another vehicle or object.

Due to their performance attributes, sports cars are frequently linked to an increased risk of collisions; therefore, collision car coverage can be advantageous, especially given the high cost of repair parts.

How to get the cheapest insurance rates on a sports car

At BrokerLink, we believe that car insurance should be affordable for all drivers, no matter what type of car you drive. This is why we're more than happy to give you tips that can save on your insurance premiums the next time you're up for a renewal:

Carefully choose your sports car

If you haven't yet purchased a high-performance vehicle, do some research on the different insurance costs associated with each model you're considering. The make, model, and characteristics of an automobile can have a substantial influence on insurance rates. Try to select a sports vehicle with safety features such as airbags, electronic stability control, and anti-lock brakes. Discounts often apply to cars with safety features.

Keep a clean driving record

Insurance companies provide reduced rates to drivers who are responsible on the road. To maintain a perfect driving record, stay away from speeding fines, collisions, and other driving infractions. At the same time, consider taking defensive driving classes to show that you are dedicated to driving safely. You might be eligible for specific insurance reductions by doing so.

Increase your deductibles

Look into opting for a greater deductible. In the event of a claim, a greater deductible will cost you more money out of pocket, but it frequently results in cheaper monthly rates.

Bundle policies

If you have more than one type of insurance with your provider, you may be eligible for discounts if you bundle your policy. Not only will this save you money, but it can also help you manage your different plans more easily.

Compare and shop around

Avoid settling on the first quote you're offered. Get estimates from several insurance companies and shop around to be sure you're getting the best deal. Work with an insurance broker from BrokerLink or use online comparison tools to expedite the quote comparing process.

Think about insurance based on usage

Certain insurance providers provide usage-based insurance plans that track your driving patterns using telematics equipment. Lower rates may arise from your safe driving record.

Put snow tires on your high-performance vehicle

If you put winter tires on your sports car, you might be able to receive an extra insurance discount. Insurance companies will compensate you for using snow tires because they are safer and lower your risk of having an accident during the wintertime.

Combined your auto insurance plans for multiple cars

Why not insure all of your household's vehicles at once if you have multiple cars? You might save up to 20% on each policy if you do this (discounts vary across providers and provinces).

Annual insurance payment

Another way to reduce your auto insurance costs is to pay for your sports vehicle insurance policy annually as opposed to monthly. For every payment, a lot of insurance companies impose a service charge. So, you can save money by paying a lump sum once a year rather than twelve times a year.

How can I get sports car insurance for my car?

Finding the right sports car insurance for your sports car is easier than ever, thanks to BrokerLink. By following these steps below, you can be behind the wheel and on the open road in no time:

1. Consult an insurance broker

Speak with an insurance broker as soon as possible to find the greatest coverage at a reasonable price. At BrokerLink, we provide Canadians with high-quality insurance coverage. Our insurance consultants will take the time to learn about your particular needs and get to know you before offering customized solutions in your budget range.

2. We do research on your behalf

When you contact BrokerLink and give us the all-clear, your personal insurance advisor will start comparing quotes for you. In search of the best deal, experts will get in touch with the best auto insurance providers in Canada to compare plans, get estimates, and unlock savings.

3. You obtain an excellent deal.

After going over a few options with you, your dedicated BrokerLink insurance consultant will let you select the one that best suits your needs.

Contact BrokerLink for cheap insurance in your area

Are you looking for cheap auto insurance in Canada? If so, the expert broker team from BrokerLink is here to help, whether you have questions about your sports car's current coverage or are looking to renew your policies.

Give us a call to speak with one of our brokers directly. You're also welcome to come to any of our many offices across the country if you would rather talk to us in person! Want quotes right away? Use our free online estimate tool to get personalized insurance quotes while relaxing in the comfort of your own home!

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What cars are considered sports cars for insurance? FAQs

Does a sports car cost more on insurance?

Yes, insurance for sports cars is usually more expensive than for conventional vehicles. Sports cars are more likely to be involved in accidents due to their elevated speed, greater performance capacity, and higher maintenance costs resulting from their specialized parts, which all contribute to their higher insurance rates.

Criminals also frequently target sports cars, which raises insurance premiums. When determining premiums, insurance companies take these things into account, which makes the total cost of insurance for sports cars higher than that of more traditional vehicles.

Is a Honda Civic considered a sports car?

The Honda Civic is not regarded as a sports vehicle. Most people would classify the Honda Civic as a compact automobile because of its dependability, fuel economy rating, and practicality. The base variants of the Civic are not considered sports vehicles, even though the brand may offer sportier variations like the Civic Si or Type R.

Sports cars are usually distinguished by their powerful engines, design, and focus on speed. Despite being highly praised for its well-rounded qualities, the Honda Civic is more of a compact sedan or hatchback than a sports car.

Is a Subaru WRX considered a sports car?

In general, the Subaru WRX is regarded as a sports car. A high-performance version of the Subaru Impreza, the WRX is renowned for its four-wheel-drive system, turbo engine, and rally appearance. It has traits typical of sports automobiles, such as sharp handling, rapid acceleration, and a performance-oriented design.

Although there are many definitions of what constitutes a sports car, the Subaru WRX's standing as a fast and athletic automobile is consistent with these attributes. Given that insurance companies frequently take handling and speed into account when setting rates for sports cars, the Subaru WRX's high-performance nature may be reflected in its auto insurance costs.

How much is car insurance per month in Ontario?

If you live in Ontario and are thinking of purchasing a new sports car, you may be wondering: How much is car insurance per month in Ontario? Auto insurance rates are calculated by a number of criteria that differ significantly among drivers. These include your driving record, gender, age, place of residence, insurance limitations, and vehicle type.

The typical monthly payment in Ontario might be anything between $100 and $300. But keep in mind that since this is only a rough figure, precise amounts could vary. Rates for insurance may go up for drivers who are less experienced, new to driving, or have a history of accidents. If you're insuring high-performance cars, you can also expect to pay more for insurance.

How much is sports car insurance for under 18 drivers?

Because of their higher risk profile, insurance rates for sports cars can be very costly for drivers under the age of 18. Accident rates are statistically greater for younger drivers.

Sports car premiums for drivers under the age of 18 may vary from $3,000 to $7,000 per year, contingent on the model of the vehicle, the motorist's location, driving history, and coverage choices.

In order to potentially lower premiums, it's critical for young drivers and their guardians to compare rates, look into discounts, and take into account things like keeping good grades or finishing driver safety classes. Over time, maintaining a clean driving record and practicing safe driving can also help cut expenses.

Can I switch insurance providers to get a better rate for my sports car?

Yes, you are able to move insurance companies in order to negotiate a better deal on your sports car potentially. It's a good idea to compare rates from several insurers while considering things like price reductions, deductibles, and coverage alternatives.

That said, to keep your coverage going forward, be aware of any cancellation costs charged by your present carrier and ensure the transfer goes smoothly. Owners of sports vehicles can find the most affordable and appropriate coverage for what they require by routinely examining and contrasting their insurance options.

Will my car insurance rate change if I make modifications to my sports car?

Yes, your auto insurance rate may increase if you modify your sports car. Insurance companies can view changes as an elevated risk factor, which would result in higher premiums. Insurance prices may be impacted by modifications that improve performance, modify the vehicle's appearance or other alterations that affect the value of the car itself.

To guarantee correct coverage, it is imperative that you notify your insurer of any changes as soon as possible. Changes that are not disclosed may lead to gaps in coverage or possibly cancellation of the policy.

Maintaining transparency and making sure your coverage is in line with the unique features of your customized sports car can be accomplished by frequently reviewing your policy and having a conversation about modifications with your insurance provider.

Can I get temporary insurance for my high-performance car?

Yes, temporary insurance for high-performance cars is available through insurance providers. Many insurance companies have flexible options if you need to insure your high-performance vehicle for a short time, like a weekend road trip or while it's being stored. Verifying with your particular insurance provider is essential, as availability and coverage options may differ.

If you have any questions, contact one of our local branches.