Here’s a HOT debate. Are luxury cars more expensive to insure or Sports cars? Why?
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Luxury Vs. Sports Car Insurance
We are going to prove to you with proof which one is cheaper than the other. Let’s find out!!
First, let’s start with the basics;
What cars are considered Luxury cars?
A car that has high levels of comfort, quality, performance, equipment, amenities, and status compared to other regular cars is called a luxury car because the car has luxuries that no regular car has.
Normally the price is higher than the average car. This term is actually subjective because it reflects to 2 major things, 1. The qualities of the car, and 2.
The brand of its manufacturer. Luxury brands like BMW, Mercedes-Benz, and Audi rank above the premium of the typical car insurance.
The size is a great matter when it comes to luxury cars, most luxury cars used to be large vehicles, but now there are smaller sports-oriented models also compact luxury vehicles like off-roads and hatchbacks can be a sport. The smaller luxury cars are modern trends, traditional luxury cars were large.
What cars are considered Sports cars?
A car that is designated as a vehicle with a higher horsepower engine, two seats and a smaller overall size is considered a “Sports car.”
You should know that there is no standard set of rules for the classification of a sports car, and insurance companies can classify cars however they choose.
Luxury car insurance cost
As you noticed, luxury cars cost more to insure than a typical vehicle’s coverage. The average luxury car insurance rate is about $2,989 per year, or $250 a month.
What are the average sports car insurance rates?
What’s even more interesting is that sports car is more expensive to insure than luxury cars. The average sports car insurance is approximately $3,783 annually, or around $315 per month.
Why are luxury cars more expensive than sports cars?
Several factors will be taken into consideration when insurance companies calculate a luxury car insurance premium;
- First, there is the price of your car in case it got totaled, and your insurance company had to replace it.
- Then, follows the expensive repair costs of luxury cars because their parts can be rare, hard to find, or only a professional can fix the car.
- The size of your luxury car also matters because it can do more harm than a smaller car.
- The engine size and the horsepower are some of the important factors because the faster it goes, the riskier it can be to insure it.
- Finally, a high probability of theft because it’s a pricy car and can benefit the thieves a lot with just one highjack.
There are also a number of factors that increase sports car insurance;
- Sports cars are regarded as risky. Insurance companies consider sports cars as risky cars because of their regular high speed; they can get tickets and be involved in accidents more often than luxury cars.
- The classification of a sports car. Sports cars are usually small in size to have high-performance, high-speed capabilities. Also, their engine type, make, and model can determine their classification.
- Sports cars have higher fatal accident rates. Statistics show that five top ten vehicles that had fatal accidents are sports cars.
Is Luxury Car Insurance More Expensive
What else can affect sports can and luxury car insurance?
Also, factors that would impact your typical car insurance also affect your luxury car insurance. They include:
- Age
- Driving record
- Marital status
- Credit score
- Location
- State
- Whether you garage your car or not
- Gender
What coverages do luxury cars & sports cars need?
1. Liability coverage:
Liability covers other people’s vehicle repairs and medical bills after accidents that you were at fault. The costs of repairing any property damaged and the medical bills resulting from an accident are covered.
Almost all states require a minimum amount of liability insurance.
Luxury cars are more expensive than an everyday car, so carrying a higher liability limit can be very beneficial financially if you have an at-fault accident.
Sports cars, much like luxury cars, need a higher than minimum liability coverage.
2. Collision coverage:
Collision coverage will cover damages done to your own vehicle if you’re involved in an accident with another car object, or you get into a single-car accident.
If your car is totaled (totaled means the cost of repairs exceeds the value of the vehicle) in an accident, collision coverage will pay the value of your car.
3. Comprehensive coverage:
This insurance will cover the expenses of damages to your own vehicle that is caused by something other than an accident, like vandalism, broken vehicle glass, theft, damages caused by a natural disaster, and damage caused by striking an animal.
You can install anti-theft and tracking devices to make comprehensive coverage more affordable, but still, this coverage can be costly. Comprehensive is not necessary at all times, especially if your car is replaceable.
It’s good to know that comprehensive is sometimes referred to as “other-than-collision coverage.”
4. Medical payments coverage:
Medical Payments Coverage, commonly known as MedPay, covers the accident-related medical expenses for you, your passengers, your household members, and other policyholders regardless of who is at fault.
Personal injury protection may be mandatory if you live in a no-fault state. In that case, you won’t need medical payments coverage because this coverage is more limited.
5.Gap insurance:
Gap insurance is excellent if you are financing or leasing a luxury or a sports car. This coverage fills the gap between the amount your insurer pays out of your vehicle if it is stolen or considered totaled and the price you paid for it.
Notice: Both sports cars and luxury cars need these coverages. With these coverages, you can rest assured that if you get into an accident, you are covered; you don’t have to pay a huge amount of money all at once.
Final word
There you have it. LUXURY cars are literarily cheaper than sports cars because sports cars are riskier, and this proves that if there is one thing that insurers hate, it is risks.
