Sports car insurance: Why premiums can vary in cost

KUALA LUMPUR: The cost of insuring sports cars in Malaysia can differ significantly, even for vehicles of similar value. Insurers evaluate multiple factors when setting premiums for these high-performance vehicles, including vehicle characteristics, driver profiles, claims history, and the sum insured. Since motor insurance pricing was liberalized in 2017, insurers and takaful operators have been able to utilize broader risk factors to determine premiums for comprehensive policies and third-party fire and theft motor policies.

However, sports car owners face unique challenges due to the increased repair costs that are currently impacting the motor insurance market. According to the General Insurance Association of Malaysia (PIAM), the average cost per private car claim increased by 20% to RM8,831 in 2025, primarily due to higher spare-parts prices and repair costs.

This rise in repair costs has led to an underwriting loss of RM289.3 million for motor insurers last year, with a combined ratio of 103%. It is crucial for sports car owners to carefully compare not only the price but also the coverage provided by different policies, as two cars of similar value may not necessarily carry the same risk or result in the same insurance premium.

When evaluating quotations, owners should consider factors such as the sum insured, excess, coverage limits, exclusions, and optional benefits. BJAK, a platform that allows motorists to compare car insurance options from multiple insurers and takaful operators, advises that understanding how insurers assess a sports car's risk is as important as comparing the final premium, as motor insurance becomes increasingly risk-based.