Sports car insurance: Why premiums can vary in cost

KUALA LUMPUR: Sports car owners in Malaysia may pay different insurance premiums for vehicles of similar value, as insurers assess several factors when determining risk.

Sports car insurance covers high-performance vehicles, with premiums reflecting factors related to the vehicle, driver and claims risk, as well as the sum insured.

Bank Negara Malaysia said insurers and takaful operators had been able to use broader risk factors to set premiums for comprehensive policies and third-party fire and theft motor policies since motor insurance pricing was liberalised in 2017.

For sports car owners, this is particularly relevant.

High-performance and sports cars may be assessed differently by insurers, with factors such as the vehicle model, engine capacity, driver profile and claims history also influencing premiums.

RISING REPAIR COSTS

Repair costs are putting pressure on the motor insurance market.

The General Insurance Association of Malaysia (PIAM) said the average cost per private car claim rose 20 per cent to RM8,831 in 2025, mainly due to higher spare-parts prices and repair costs.

The figure covers private cars generally rather than sports cars specifically, but highlights the broader rise in repair costs faced by insurers.

PIAM said motor insurers recorded an underwriting loss of RM289.3 million last year, with a combined ratio of 103 per cent.

"Two cars can have a similar value, but that does not necessarily mean they carry the same risk or receive the same insurance premium.

"For sports car owners, it is important to compare both the price and what the policy actually covers," BJAK chief executive officer Ronald Lim said.

LOOKING BEYOND PREMIUMS

Lim said owners comparing quotations should check the sum insured, excess, coverage limits, exclusions and optional benefits.

An excess is the amount a policyholder must pay towards a claim before the insurer covers the remainder.

BJAK, which allows motorists to compare car insurance options from multiple insurers and takaful operators, said differences in price and coverage should be considered before renewing a policy.

As motor insurance becomes increasingly risk-based, understanding how insurers assess a sports car's risk can be as important as comparing the final premium.