For a car enthusiast, buying a sports car is a dream and it is a lifetime commitment to keep it safe and in good condition. Considering the cost of a sports car, it is important to protect them with the right car insurance plan that offers a suitable coverage.
There is no doubt that the maintenance of a sports car is expensive and not everybody can afford it. These cars perform extremely well with accelerated power and torque. The thrill of driving a sports car is experienced only when you drive at a particular speed. Hence, the risk factor associated with this type of car is also high. Be it small or big damage, the repair cost is usually more than a lakh. Therefore, insuring sports cars is vital.
Insurers consider sports car as high-risk vehicles, and hence the car insurance premium is also high. Some of the top insurance companies in the country like Bajaj Allianz, HDFC Ergo, etc. offer best coverage plans for sports cars. Car insurance companies provide insurance plans according to the type of car like sedan, hatchback, SUV, premium SUV, sports car, luxury car, etc. So, depending on the type of car you own, the plan and the premium will vary.
Higher the cost of the car, higher the coverage and cost of a car insurance policy. Car models manufactured by Porsche, Ferrari, Lamborghini, Mercedes, etc. are expensive and it requires a different kind of car insurance policy. It should include some of the exclusive benefits that would fulfill the requirement of the car.
For sports cars, you have to purchase a comprehensive plan which covers own damage, accident, third-party liabilities, natural calamities, riots, protests, etc. To enhance your cover as per the sports car requirement, you can choose from the following riders:
Zero depreciation cover: For any type of machine, depreciation value is applicable. However, for a sports car, it is necessary to protect your vehicle from this aspect. This add-on optional cover will save on the depreciation value by completely omitting it at the time of claim process. Usually, when a policyholder makes a claim for any repair or replacement of parts, the claim settlement amount is calculated after deducting the depreciation value. However, with the zero depreciation cover you can avoid it.
Engine protection cover: The main feature of a sports car is the engine. An engine is the heart and brain of a car. While most of the sports cars come with a state-of-the-art engine designs, any repair to these parts will cost at least 1/4th of the value of the car. If you have an engine protection cover, then any repair or replacement cost will be borne by the insurer, up to the limit specified in the policy. It covers engine break down, oil leakage, etc. Some of the engine designs may be from a limited edition series which are expensive to replace or find parts to repair. Hence, the cost of this add-on cover is also high.
Return to Invoice cover: Luxury cars, especially sports cars are always at high risk of being stolen. In some cases, sports cars which have been completely damaged in an accident cannot be repaired beyond a point. In both these scenarios, it is you who has to suffer the loss. If the car is stolen, you will have to file an FIR with the nearest police station immediately. After a significant amount of time, if the car is not traceable, the police will issue a certificate in the same interest. If the car cannot be repaired, then the manufacturer will issue a certificate for the same. However, when you have a return to invoice cover, the insurer will either repay the complete on-road price or the ex-showroom price of the car (which excludes the road tax, registration charges, etc.).
No Claim Bonus cover: The renewal premium amount for sports car insurance is high and if there are any discounts applicable, then you can save on the premium amount. No Claim Bonus is a discount given by the insurer for a claim-free policy year. NCB is valid up to 5 years, a minimum of 20% and a maximum of 50% can be availed depending on the number of claim-free policy years. However, if you have claimed the car insurance policy even once, then the NCB discount will become nil. For a long-term insurance policy, the NCB percentage will decrease but does not become zero.
Personal accident cover: If you drive a sports car at a speed above 100 kmph, personal accident cover is a must-have for the driver or owner of the car. Usually, insurers allow a medical claim up to Rs.1 lakh, but few insurers personalise the limit of the cover according to the needs of the policyholder.
Key replacement cover: Keys to sports cars are usually electronic and are operated through signals which are designed through computer codes. So if you lose the key, it will usually cost you more than Rs.10,000 to replace them. With this optional add-on cover, the cost of replacement will be borne by the insurance company.
Roadside assistance cover: The chances of a sports car having a mechanical breakdown are very low, but not zero. Thus, it is important to have roadside assistance cover, wherein the insurer will help you with both medical and mechanical assistance sent to your location. This assistance is available 24/7, and all you have to do is call to the customer helpline of the insurer and mention the incident and your location. This service is very helpful when you are traveling long distance.
Car insurance is a statutory requirement as per the Motor Vehicles Act, 1988. Be it a regular hatchback or a sports car, car insurance is a requirement in today’s traffic and road conditions.