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The Ultimate Guide to Sports Car Insurance in Canada

By Arthur Dubois | Published on 15 Aug 2023

    If you’re a sports car owner in Canada, you know that car insurance is an essential aspect of owning and driving your prized possession. Sports cars are known for their speed, performance, and style, but these factors make them a little more complex than insuring a regular vehicle. In this ultimate guide, we will dive into the world of sports car insurance in Canada, helping you understand the ins and outs, factors affecting insurance rates, how to get the best rates, and the different types of coverage available.

    Understanding Sports Car Insurance

    Before we delve into the specifics, let’s start by understanding sports car insurance. Sports car insurance is a specialized type of auto insurance tailored to meet the unique needs of sports car owners. It covers the potential risks and liabilities of owning and driving a sports car.

    What is Sports Car Insurance?

    Sports car insurance offers protection in case of damage to your sports car and liability coverage in case you’re involved in an accident that causes harm to others or their property. Additionally, it may provide coverage for theft, vandalism, and other potential risks.

    Depending on your vehicle type, you typically have three options to insure your sports car. Insurance options for sports cars are sports car insurance, exotic car insurance, and collector car insurance.

    Sports Car Insurance

    Before you insure your vehicle, your insurer will ask you for details about your vehicle. Insurers look at the characteristics of your car to determine if it’s a sports car or not. Generally, they will consider your vehicle a sports car if it has a V8 or larger engine, high horsepower, two doors, is lighter weight and lower profile than regular cars, and has a performance class engine. 

    Exotic Car Insurance

    Some sports cars can be covered by exotic car insurance. Exotic car insurance covers sports cars and other vehicles as well. Exotic cars usually cost over $100,000, are rare, and are made with high-performance materials. While some sports cars like Maseratis and Ferraris can be sports and exotic vehicles, others like Bently or Rolls Royces can fit in this category.

    Collector Car Insurance

    Your sports car may fit in the collector car insurance category. Collector car insurance covers vehicles over a certain age, such as 15 or 20 years. These vehicles are typically limited editions, built for a specific model year or unique. If, for example, you have a Dodge Viper, you could insure that as either a sports car or a collector car.

    Some key differences exist between collector and sports car or exotic car insurance. For example, the yearly mileage allowed is minimal by the policy. You may only be able to drive 5k or 8k per year. Some policies may require storing the car in a garage or only allow summer driving. These policies may also require you to have another vehicle you drive regularly.

    The type of insurance you need for your car depends on the type of vehicle you have. Many insurers can tailor the policy to suit your needs. 

    Why is Sports Car Insurance Different?

    Compared to insuring regular vehicles, sports car insurance is often more expensive. The higher cost is due to several reasons. Sports cars are generally more valuable and costly to repair, and they can be prone to accidents due to their speed and performance capabilities.

    Insurance providers also take into account the increased risk associated with sports cars. Statistics show that sports car drivers are more likely to drive recklessly, increasing insurance premiums.

    One of the main reasons sports car insurance is more expensive is the cost of repairs. Manufacturers often equip sports cars with high-performance engines and advanced technology, making them more costly to fix in case of an accident. Additionally, sports cars are built with lightweight materials and aerodynamic designs, which can further increase the cost of repairs.

    Theft is another factor contributing to the higher insurance premiums for sports cars. Thieves often target sports cars due to their high value and desirability. Insurance providers consider this and offer comprehensive coverage to protect against theft and vandalism.

    Furthermore, sports cars’ speed and performance capabilities can make them more prone to accidents. The powerful engines and responsive handling can tempt drivers to push the limits and engage in reckless driving. Insurance providers consider this increased risk and adjust the premiums accordingly.

    It’s important to note that not all sports car policies are equal in insurance costs. Factors such as the make and model of the sports car, the driver’s age and driving record, and the location where the vehicle will be driven can all impact the insurance premiums. Some sports cars may be considered higher risk than others, leading to higher insurance costs.

    Factors Affecting Sports Cars Insurance Rates in Canada

    Several factors come into play when determining the car insurance rates for your sports car. Understanding these factors helps you navigate the insurance landscape and save money on your premiums.

    Insurance providers consider various factors when calculating the rates for insuring sports cars in Canada. These factors include the age and value of the sports car, the driver’s age and driving history, as well as the location and usage of the vehicle.

    Age and Value of the Sports Car

    The age and value of your sports car are critical factors that influence your insurance rates. Newer and more valuable sports cars generally have higher premiums as they are more expensive to repair or replace in case of an accident. The advanced technology and specialized parts in modern sports cars contribute to the higher repair costs.

    On the other hand, older sports cars may have lower insurance rates since their value has depreciated over time. However, it’s important to note that vintage or classic sports cars may require specialized insurance like collector car insurance due to their uniqueness and higher potential value. Collector cars sometimes increase in value over time. As a result, these vehicles often require appraisals and specific policies to protect their value adequately.

    In addition to the age and value of the car, insurance providers also consider the make and model. Certain sports car models may have higher theft or accident rates, which can result in higher premiums.

    Driver’s Age and Driving History

    Your age and driving history play a significant role in determining your insurance rates. Younger drivers, particularly those under 25, are considered higher-risk drivers and may face higher premiums. The higher premiums are due to statistics showing that younger drivers are more likely to engage in risky driving behaviours and get involved in accidents.

    Your driving history, including any previous accidents or tickets, can also impact your rates. Insurance providers factor in your track record to assess your risk as a driver. Maintaining a clean driving record can help keep your premiums lower. Safe driving courses and defensive driving certifications can also help reduce insurance costs for sports car owners.

    Some insurance providers may offer discounts for experienced drivers or those with the same insurance company for an extended period without any claims. It’s worth exploring these options to save on your premiums.

    Location and Usage of the Sports Car

    Your location and how you use your sports car also affect your insurance rates. Urban areas with higher traffic congestion and increased likelihood of theft or vandalism may result in higher premiums. Insurance providers consider the risk associated with the location and adjust the rates accordingly.

    Furthermore, if you use your sports car for daily commuting or business, your insurance rates may be higher than those who use it for occasional leisure drives. The more time you spend on the road, the greater the chances of an accident. Insurance providers consider the frequency of use and the distance driven when calculating premiums.

    It’s essential to accurately disclose the usage of your sports car to your insurance provider. Failing to do so may result in denied claims or even policy cancellation in case of an accident.

    By understanding these factors and their impact on your insurance rates, you can make informed decisions regarding insuring your sports car in Canada. It’s wise to shop around and compare quotes from different insurance providers to ensure you get the best coverage at the most competitive rates.

    How to Get the Best Sports Car Insurance Rates

    Now that we’ve covered the factors influencing your insurance rates, let’s explore how to secure the best sports car insurance rates.

    When insuring your beloved sports car, finding the right coverage at the best price is essential. Not only will it save you money, but it will also provide you with peace of mind knowing that you have the right coverage at an affordable price.

    So, what can you do to get the best sports car insurance rates? Let’s dive into some practical strategies that can help you in your quest.

    Compare Various Car Insurance Quotes

    One of the most effective ways to get the best rates is to shop around and compare quotes from different insurance providers. Each provider has criteria for determining rates, so getting multiple quotes allows you to find the most competitive option.

    Thanks to the internet, shopping for insurance quotes has never been easier. Online comparison tools can streamline this process. They enable you to enter your information once and receive quotes from multiple insurers, saving you time and effort.

    Take your time to review the quotes you receive carefully. Look beyond the price and consider the coverage options, deductibles, and additional benefits. Carefully reviewing your insurance quotes will ensure you make an informed decision based on your needs.

    Taking Advantage of Discounts

    Insurance providers often offer various discounts that can help lower your premiums. Look for deals such as multiple policy discounts, safe driver discounts, and discounts for installing anti-theft devices or safety features in your sports car.

    Additionally, some insurers offer reduced rates for completing defensive driving courses or being a member of a  professional organization. These discounts reward responsible behaviour and reduce the risk of insuring sports cars.

    Insurers don’t always advertise their discounts, so don’t hesitate to ask your insurance provider about any potential offers you may be eligible for. You might be pleasantly surprised by the savings you can unlock.

    Improving Your Driving Record

    As mentioned earlier, maintaining a clean driving record can contribute to lower insurance rates. By practicing safe driving habits and following traffic rules, you can avoid accidents and fines that can increase your premiums. Over time, your responsible driving behaviour may be rewarded with lower insurance rates.

    Consider taking a defensive driving course to enhance your driving skills and demonstrate your commitment to safe driving. Not only will this help you stay safe on the road, but it may also make you eligible for additional discounts.

    Remember, your driving record reflects your risk as an insured driver. By consistently demonstrating responsible behaviour behind the wheel, you can build a solid track record that will work in your favour when securing the best sports car insurance rates.

    Types of Coverage for Sports Cars

    When insuring your beloved sports car, it’s essential to understand the different types of coverage available. This knowledge will help protect your investment and give you peace of mind while hitting the open road.

    Basic Sports Car Insurance

    Basic sports car insurance includes third-party liability, accident benefits, Direct Compensation Property Damage and uninsured driver coverage. Basic insurance is mandatory in every province if you want to drive. However, not every province includes the same features in a basic insurance property, so confirming your coverage with your insurance provider is essential.

    Liability Coverage

    One of the fundamental coverages for sports car insurance is liability insurance. This coverage protects you if you are at fault in an accident and cause harm or damage to others or their property. It typically includes bodily injury liability, which covers medical expenses and lost wages for the injured party, and property damage liability, which covers repairing or replacing the other person’s vehicle or property.

    Imagine cruising down the highway in your sports car, and you suddenly lose control of your car and collide with another vehicle. Without liability insurance, you could be held personally responsible for the medical bills, vehicle repairs, and any other damages to the other party resulting from the accident. However, with liability insurance, you can rest easy knowing you are financially protected.

    Accident Benefits

    Accident benefits cover medical care, rehabilitation, and lost income due to a disability from the accident. Funeral expenses and a death benefit may also be included.

    Direct Compensation Property Damage

    If your vehicle is in a collision, your insurer may pay to repair the car. Different provinces have different rules regarding Direct Compensation Property Damage, so you must check with your insurer to find out what you’re covered for.

    Uninsured Driver

    If you are in a collision with an uninsured driver, your insurer may compensate you for the damages you sustain. This protects you in case of an accident with a driver without insurance.

    Optional Coverage

    Sports car insurance comes with various types of optional coverage. Two of the most common are collision and comprehensive coverage. Additionally, many insurers offer add-ons to their insurance policies for further protection. Your agent or broker can review these with you to determine if additional insurance will meet your needs.

    Collision Coverage

    Another essential type of coverage for sports cars is collision coverage. As the name suggests, this coverage protects your sports car in case of an accident where you collide with another vehicle or object. Whether it’s a fender bender or a more severe collision, collision coverage will cover the costs of repairing or replacing your sports car, regardless of fault.

    Suppose you’re driving through the city, enjoying the performance of your sports car, and someone rear-ends you at a stoplight. The impact leaves your vehicle with significant damage, and without collision coverage, you could have a hefty repair bill. However, with collision coverage, you can breathe a sigh of relief knowing that your insurance will cover the expenses, allowing you to get back on the road in no time.

    Comprehensive Coverage

    While liability and collision coverage provide essential coverage to protect your vehicle, comprehensive insurance takes sports car insurance to the next level. Comprehensive coverage goes beyond collisions and includes protection from damage to your sports car caused by theft, fire, vandalism, weather events, or other non-collision incidents.

    Imagine waking up one morning to find your garage empty, your beloved sports car stolen. With comprehensive coverage, you could avoid a significant financial loss. However, with comprehensive coverage, you can have peace of mind knowing that your insurance will help you recover from these unfortunate events. Comprehensive coverage has got you covered, whether it’s a hailstorm damaging your car’s sleek exterior or a vandal leaving scratches on your prized possession.

    As a sports car owner in Canada, having the right insurance coverage is vital to enjoying your passion for driving while protecting your investment. By understanding sports car insurance, the factors affecting rates, how to get the best rates, and the different types of coverage available, you can make informed decisions that will help you find the right insurance for your sports car. So buckle up, adjust your rearview mirror, and hit the road with confidence, knowing that you are covered every step of the way!

    FAQs About Sports Cars Insurance in Canada

    Are sports cars more expensive to insure?

    Sports cars are more expensive to insure due to their increased risk of accidents and theft. Additionally, repairing a sports car can cost more because its components are often more costly.

    What is considered a sports car for insurance purposes?

    Before you insure your vehicle, your insurer will ask you for details about your vehicle. Insurers look at the characteristics of your car to determine if it’s a sports car or not. Generally, they will consider your vehicle a sports car if it has a V8 or larger engine, high horsepower, two doors, is lighter weight and lower profile than regular cars, and has a performance class engine. 

    Is a Honda Civic considered a sports car by car insurers?

    Generally, the Honda Civic is not considered a sports car for insurance purposes. However, it can depend on the model of the Honda Civic and the vehicle’s specifications. Your agent or broker will tell you whether it is a sports car once you give them the vehicle details.

    Is a Subaru WRX a sports car by car insurers?

    Most insurance providers consider the Subaru WRX to be a sports car.

    Is a Camaro considered a sports car by car insurers?

    For insurance purposes, the Camaro is typically considered a sports car.

    Is a Dodge Challenger a sports car by car insurers?

    Most insurers consider a Dodge Challenger to be a sports car. Premiums to insure a Dodge Challenger may be higher than premiums for cars not considered sports cars.

    Is a Dodge Charger a sports car by car insurers?

    The Dodge Charger is a high-performance vehicle typically considered a sports car by insurers. Depending on the make and model, it may also be regarded as a luxury car.

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    Arthur Dubois is a personal finance writer at Hardbacon. Since relocating to Canada, he has successfully built his credit score from scratch and begun investing in the stock market. In addition to his work at Hardbacon, Arthur has contributed to Metro newspaper and several other publications