Insurance for sports cars

If you are drawn to the allure of a shiny, fast sports car, you might want to consider getting robust car insurance to protect your investment in your vehicle. Sports cars are often more expensive to repair or replace, which in turn can make insuring them more expensive. Other factors that play a role in most states include your age, credit rating and your ZIP code. And contrary to popular belief, the color of your sports car has no bearing on rates. Bankrate’s insurance experts have done the research into the factors that affect how much insurance for a sports car is to help you shop for the best policy.

Models included in this review:

• BMW 330i
• Dodge Challenger
• Dodge Charger
• Ford Mustang GT

How much is insurance for a sports car?

Car insurance costs vary widely based on a vehicle’s make and model. Sports car owners are likely to pay a higher premium for auto insurance. The steeper cost for sports cars is due in part to the fact that auto insurers recognize that sports cars have a higher risk for:

• Collision damage
• General safety
• Parts replacement
• Vehicle theft

In addition to a higher risk profile, sports cars have a higher intrinsic value compared to standard sedans. The higher Insured Declared Value (IDV) on sports cars can make the premium more expensive. How much higher your premium will be than the national average for a standard sedan will depend on your geographic location, marital status, specific vehicle make and model, credit history (in most states) and driving history.

Bankrate leveraged premium data from Quadrant Information Services to show you the average cost of insurance for some popular sports cars models: BMW 330i, Dodge Challenger, Dodge Charger and Ford Mustang GT. For the sake of comparison, we also included average rates for a Toyota Camry to give you a better idea of baseline insurance costs. While full coverage policies for the sports cars we included are at least a couple hundred dollars more on average than the Camry, average minimum coverage amounts appear to be much closer. This is partially due to the fact that state minimums usually reflect only low liability rates for injuries and repairs, and do not take into consideration the higher costs of sport car repairs that must be considered if you add collision and comprehensive coverage.

Average annual car insurance rates for sports cars vs. standard cars

Car insurance for sports cars by model 

BMW 330i

The 330i is the most affordable of BMW’s 3-series vehicles, with a starting MSRP of $42,245 for the 2021 model. However, this sporty sedan still costs nearly $500 more per year to insure with full coverage than the average vehicle. BMW itself is a German brand, and today produces its vehicles in Germany, China, South Africa, Mexico and the U.S. Shipped in repair parts can drive up insurance costs; RepairPal estimates that, on average, BMW 330i owners spend $748 per year on vehicle maintenance — nearly double the cost of annual Camry repairs.

Dodge Challenger 

Dodge Challengers may have a retro look, but the newer iterations are outfitted with modern features like backup cameras, collision warnings and blind spot monitoring — most of which are included in the base model with a starting MSRP of $31,045. While these safety features in theory help lower the Challenger’s insurance costs, they may be outweighed by its lackluster safety ratings. The Institute for Highway Safety (IIHS) rated the 2021 Challenger in five crashworthiness categories. Of these five, it earned two “good” scores, while the rest were only average or marginal.

Dodge Charger 

Sports car fans who like the Challenger’s old-school-cool muscle car look but prefer more passenger space may look to the Dodge Charger. Although the Challenger and Charger have comparable starting MSRPs — $31,045 and $32,720, respectively — the Charger costs more to insure on average. Its manual-only transmission and zippy V8 engine options could indicate to an insurer that the person behind the wheel is more likely to engage in reckless driving behavior, such as speeding.

Ford Mustang GT

With a starting MSRP of $37,480, the Ford Mustang GT is the second-most expensive sports car on our list — but has the second-lowest average full coverage premium, and for lowest minimum coverage. Like the Dodge Charger, the Mustang GT is outfitted with a powerful V8 engine that may tempt drivers to treat the highway as their personal racetracks. But, its flawless five-star safety rating from the National Highway Traffic Safety Administration (NHTSA) could help drive its insurance rates to a more affordable level.

Cheapest car insurance companies for sports cars

Insurance for a sports car does not always need to cost a fortune. If you’re looking for cheap car insurance for your sports car, Bankrate has already done some legwork for you. Using rate information from Quadrant Information Services, Bankrate rounded up a list of insurers who not only offer car insurance rates below the model average, but below the national average as well. Keep in mind that your exact quote will vary based on multiple factors and should only be used for comparison purposes.  

Average annual premium for full coverage by model  

BMW 330i

While USAA offers the cheapest full coverage policies for a BMW 330i, the company’s strict eligibility requirements may bar some drivers from a policy. Erie also offers cheap rates, however, it currently only services 12 states.

Dodge Challenger 

Despite having the cheapest full coverage premium, Nationwide has the most expensive minimum coverage policy of the insurers on our list. Drivers looking for an affordable minimum coverage policy may consider getting a quote from Auto-Owners instead.

Dodge Charger 

USAA is again at the top of the list of most affordable average full coverage premiums for Dodge Chargers, but non-military affiliated drivers may have better luck getting a policy from Nationwide, which is more widely available.

Ford Mustang GT 

Auto-Owners and Erie do not operate in every state, but drivers who live in their service areas may enjoy both lower full and minimum coverage premiums.

What do insurance companies consider to be sports cars?

Every insurance company is different and vehicle classification standards may vary among insurers. While higher-end models made by world-renowned companies like Porsche or Jaguar are easier to designate as sports vehicles, companies such as Subaru or Honda also produce sporty models that can sometimes be in a gray area. As a general guide, insurance companies usually classify vehicles with the following traits as a sports car:

• Smaller and lighter than a standard sedan
• Two seats
• Soft back
• High horsepower
• Greater than 350-cubic inch motor
• Turbocharged engine

Ultimately, your car insurance company may decide whether your vehicle is a sports car by entering the VIN into the insurer’s system, which will take into account the vehicle make, model, horsepower, number of engine cylinders, size and weight.

Although some features may be common to both sports cars and regular sedans or SUVs, the former is usually noted by these few distinct traits. However, since many non-sports cars have turbocharged engines, your best bet is likely to ask your insurance company whether or not it considers your vehicle to be a sports car.

What coverage do you need for a performance car?

While a licensed insurance agent can work with you to find the best coverage for your needs, the general rule of thumb with auto insurance is that you start by considering your assets and what level of financial risk you are willing to assume. Because sports cars tend to have higher-end features, specialty parts and other costly components, you may want more well-rounded coverage to financially protect the vehicle in case of damage. You may also want to consider purchasing liability coverage limits above your state’s minimum requirements. The following coverages can be considered when purchasing your sports car insurance policy:

• Collision and comprehensive insurance: Collison and comprehensive insurance, two coverage types that make up what is commonly known as full coverage car insurance protect you financially against repairs or replacement of your sports car after a covered loss.
• Personal injury protection or medical payments insurance: With personal injury protection (PIP) or medical payments insurance, your insurer will help cover the cost of medical expenses for you and your passengers, regardless of who is found to be at fault in an accident. If you live in a no-fault state, PIP is most likely required.
• Gap or new car replacement insurance: Gap coverage may be of interest to drivers financing their brand new sports cars, as it will cover you if you owe more on the car than your insurance company would pay to replace it. With new car replacement coverage, you are able to recover the cost of buying a replacement vehicle of the same make and model.

Outside of your state and lender requirements, there are no additional requirements for sports car coverage that drivers must meet. Instead, it is up to sports car owners to ensure they have the breadth of coverage necessary for protecting their assets, as well as for meeting or exceeding their state’s minimum insurance requirements. Consulting with your insurance agent can help you understand what coverage limits and add-ons are available to help further protect your financial stake in your luxury vehicle.

How can you save money on sports car insurance rates?

Sports car insurance is typically more expensive than insurance for a standard economy sedan, but there are some ways you can potentially reduce their premium. By taking advantage of all available discounts that you qualify for you may be able to secure lower rates without sacrificing coverage. The following are some of the best car insurance discounts to watch for when purchasing your sports car insurance policy:

• Good driving: Safe driving programs are common with many insurance carriers, providing discounts for those who have avoided traffic violations and accidents for a given period of driving history. Many providers allow drivers to install a telematics monitoring device that sends real-time data to the insurer on your driving habits. If you drive safely, you may see savings on your premium.
• Multi-policy discounts: If you obtain a home insurance policy alongside your auto insurance policy from the same company, most insurers offer a bundling discount, applying savings to one or both policies.
• Safety features: Some insurers offer discounts if your vehicle is equipped with special safety features. Review the list of eligible safety features to see if your car qualifies for a discount. While these might not be as common with sports cars, ask your insurer to see if you qualify for a unique safety discount based on your vehicle’s features.

In addition to the discounts, drivers could also save on premiums by taking on a higher deductible. While this typically lowers your premium, it does mean you are assuming more financial responsibility in the event of a claim. Keep in mind that deductibles only apply to certain types of car insurance coverage, most notably collision and comprehensive coverage, so you may not have a deductible if you have minimum car insurance coverage.

Frequently asked questions