Sports Car Lovers, What You Need to Know About Auto Insurance Policy?

How would you define a sports car?

While, phrases like “awe-inspiring thermodynamics”, “blazing horsepower”, and “a privileged driving experience” among others are used more often, it is hard, to sum up, that feeling in a few words. Although owning and driving a sports car are experiences beyond the ordinary, you cannot rule out the need for insurance for ensuring its safety. With all-round protection and easy car insurance renewal at your disposal, you should plan coverage for your esteemed car. But, don’t choose the insurer in a jiffy as it is not an average Joe’s car.

Insurance for Sports Cars:

A sports car, which delivers an unmatched performance, has a much higher cost of coverage in the market as well. It comes as no surprise that these cars correspond to a more expensive insurance plan owing to their expensive spare parts and limited production. In India, leading insurance products like HDFC ERGO Car Insurance offer a much-sought-after coverage for exotic cars.

As it is evident by the data, there are 50 car insurance groups that further classify the types of cars into sub-groups like a sedan, hatchback, and SUV among others. So the amount of insurance that is to be paid is influenced by the car’s group number; higher number denoting higher insurance.

Undoubtedly, a sports car represents the top group category. Moreover, you should also have a clear picture of car insurance renewal. When it comes to renewal, the first policy is purchased from the car dealer as far as the process is concerned. It is only after the first renewal that it seems viable to choose the best policy depending on your needs.

How would you define a sports car?

While, phrases like “awe-inspiring thermodynamics”, “blazing horsepower”, and “a privileged driving experience” among others are used more often, it is hard, to sum up, that feeling in a few words. Although owning and driving a sports car are experiences beyond the ordinary, you cannot rule out the need for insurance for ensuring its safety. With all-round protection and easy car insurance renewal at your disposal, you should plan coverage for your esteemed car. But, don’t choose the insurer in a jiffy as it is not an average Joe’s car.

Insurance for Sports Cars:

A sports car, which delivers an unmatched performance, has a much higher cost of coverage in the market as well. It comes as no surprise that these cars correspond to a more expensive insurance plan owing to their expensive spare parts and limited production. In India, leading insurance products like Bajaj Allianz Car Insurance offer a much-sought-after coverage for exotic cars.

As it is evident by the data, there are 50 car insurance groups that further classify the types of cars into sub-groups like a sedan, hatchback, and SUV among others. So the amount of insurance that is to be paid is influenced by the car’s group number; higher number denoting higher insurance.

Undoubtedly, a sports car represents the top group category. Moreover, you should also have a clear picture of car insurance renewal. When it comes to renewal, the first policy is purchased from the car dealer as far as the process is concerned. It is only after the first renewal that it seems viable to choose the best policy depending on your needs.

How do Insurance Companies Perceive a Sports Car?

There are certain parameters used by the insurance companies to declare the insurance value of a sports car. Some of the common factors included by the insurance providers are:

Car Brand and Model- The make and model of the car and the way it speeds up from 0 to 100 KPH.

Horse-Powers and Cylinders- Higher speed and power may put you to at higher risk of accident.

Height and Weight- Sports car has a low profile and they are much lighter in weight, which accounts for their maneuverability and agility.

Price- Cost to repair or replacement is considerably higher due to the high price of the car.

What one should keep in mind before getting the sports car insured?

Ensure that your existing insurance plans provide coverage under any circumstances be it an Tata AIG Car Insurance, or for that matter, Tata AIG Car Insurance and more.

Consider the best option after sorting through quotations from different companies

It is up to you whether you need a comprehensive car insurance coverage or a standalone third-party insurance coverage.

It is mandatory to have third party liability insurance policy, which covers any damage caused to the third party, excluding any loss caused to the property of the insured. Well, a comprehensive plan also covers self-vehicle damage.

Add-on Benefits:

Zero Depreciation Cover:

In the case of high-end cars, the depreciation amount would be extremely higher than the amount of premium that is to be paid. That’s why this cover always comes in handy.

Cashless Repair Services:

This feature includes the provision of cashless repair facility with your insurance provider, which makes it easy to settle for car insurance claims without any difficulty.

Hydrostatic Cover:

This protection shields against any consequential loss due to waterlogging.

Insured Declared Value:

In case of theft or total loss of the sports car, insurance company provides IDV, a basic amount payable in lieu of the current market value of that car.

Compulsory Deductions:

The minimum amount has to be paid for every claim that has been taken. This process is adopted by the insurers to curb or minimize the practice of availing fake or small claims.

No Claim Bonus:

This add-on cover comes in handy when you have not taken any claim for the entire year. As a result of which, you will get a rebate of 5-10% of the IDV on next renewal.

Renewal Quote:

The renewal quote is an important aspect of car insurance renewal and depends on these factors:

  • Insured declared value: depending upon the basic value of the car
  • Consideration of the additional riders
  • Voluntary deductibles based on the nature of the plan
  • No claim bonus, as it gets carried forward

Transferable Policy:

Auto insurance policies can be easily transferred from one insurer to another including all the benefits such as NCB, IDV and more.

Simplicity:

Keeping things simple is an important deciding factor between good and average auto insurance policy. There are a plethora of insurance products including but not limited to the HDFC ERGO Car Insurance, so it seems easy to pick a product that has an easy claim process.

The Bottom line:

Cars are not a trivial investment. You invest a large sum of hard-earned money in buying one. It even burns a much bigger hole in your pocket when it’s a sports car. So, you must leave no stones unturned in safeguarding your most cherished possession. However, when it comes to selecting the best insurance plan, one shouldn’t jump to conclusions. With clarity in mind and a prudent decision, buy the best auto insurance plan to ensure your exotic beauty.

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