Insurance for Sports, Exotic, & Luxury Cars in UAE
Sports cars are not like ordinary vehicles. How? They have a unique style and charisma, which sets them apart from other types. As sports cars are costly, their insurance premium is higher than regular vehicles. If you have bought a sports car and are looking to get insurance, there are high chances that you will be confused. But do not worry. We will cover every aspect of sports car insurance in this article.
WHAT IS MEANT BY SPORTS CAR INSURANCE?
Sports car insurance is made only for sports or exotic cars, and no other car segment can avail of it.
WHEN IS SPECIAL COVERAGE REQUIRED?
In some countries, there are laws that define a sports vehicle. For example, the law might focus on the horsepower, engine type, or the number of cylinders to determine whether a vehicle is a sport. You will require special coverage for such a vehicle. In case you have a vintage car that falls under the collector’s item category, special coverage may be required.
HOW MUCH DO SPORTS CARS DEPRECIATE?
Most of the cars depreciate rapidly with time, which results in a decrease in insurance premiums. But this does not hold true for sports cars. The value of a sports car does not depreciate that much. Hence, it does not affect the insurance premium that much compared to regular cars. In fact, you may pay more with each passing year.
PROBLEMS ASSOCIATED WITH SPORTS CAR INSURANCE
Since the cost associated with a sports car tends to be extremely high, many insurance companies do not offer their services for this category. If these cars get into an accident, the claim is usually very high. Hence, auto insurance companies' risk is high due to which they refuse to cover this category.
WHICH CARS FALL UNDER THE SPORTS CATEGORY BY INSURANCE COMPANIES?
The eligibility for a car to fall into the sports car category may be different from company to company. However, the majority of the insurance companies use the following criteria:
- Cars which consist of two doors.
- Cars have a softback.
- Cars which consist of two seats.
- Vehicles that are low in weight and size as compared to standard automobiles.
INSURANCE COVERAGE OFFERED TO SPORTS CARS
Even though sports cars fall under a different category than regular cars, the type of coverage offered to them is usually the same as that of any normal car. Sports cars coverage include:
COLLISION INSURANCE
Collision coverage includes any damage caused by a collision with your vehicle. It can be caused by getting into an accident with another car, hitting a pole, or other motionless objects.
UNINSURED PROTECTION INSURANCE
If someone who does not have insurance or is underinsured hits your car and causes damage to your vehicle or injures you, your insurance company will cover your expenses.
BODILY HARM LIABILITY
This type of insurance includes treating someone whom you injure with your car. Your insurance company will pay for their treatment.
COMPREHENSIVE INSURANCE
A Comprehensive insurance policy includes damage caused to your vehicle which is not caused as a result of a collision with someone or something. It includes damage caused to your car by vandalism, theft, water, falling objects, and fire.
PROPERTY DAMAGE LIABILITY INSURANCE
This insurance policy takes care of damage inflicted on someone else’s property by your car.
Wrap Up
If you have any questions in mind regarding sports car insurance, please get in touch with us. PitStopArabia will connect you with the top insurance companies in UAE and help you get a reasonable insurance premium. Thank You.