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Homeownership is expensive, no matter what type of property someone owns. And the cost of homeowners insurance can vary greatly depending on where someone lives, the size of the home, and the type of insurance.

If you’re debating whether you can afford to buy a single family home or a condo, make sure to factor in condo insurance vs. homeowners insurance costs. Keep reading for the full lowdown.

What Is the Difference Between Homeowners Insurance and Condo Insurance?

The difference between homeowners insurance vs. condo insurance is fairly straightforward. Both protect homeowners financially, but the policies differ in the scope of their coverage. (Neither policy should be confused with mortgage insurance, which is totally different)

Homeowners insurance protects most of the property someone owns (inside the home, outside the home, and the surrounding area). Condo insurance protects only the interior of the home. Because multiple condos share one building, the exterior and area around the condo are the responsibility of the homeowners association (HOA) master insurance policy.

You can learn more about both types of coverage by shopping around with online insurance brokers.

How Does Dwelling Coverage Differ for Home Insurance vs Condo Insurance?

When it comes to homeowners vs. condo insurance, how dwelling coverage works varies:

•   Homeowners insurance: Dwelling coverage is based on how much it might cost to completely rebuild the home.

•   Condo insurance: How much dwelling coverage is needed is based on what the HOA master policy covers. For example, some master policies may cover select interior structures (like drywall or ceilings) or the entire interior.

Recommended: First-Time Home Buyer’s Guide

How Does Liability Coverage Differ?

For liability insurance, coverage needs can also be different for condos and homes.

•   Homeowners insurance: Liability coverage extends to the entire property (inside and outside the home).

•   Condo insurance: Covers accidents that happen inside the condo.

How Does Personal Property Protection Differ?

Personal property protection works similarly whether someone has a homeowners policy or a condo policy. This type of coverage is designed to protect the policyholder’s belongings from damage and theft. HOA master policies don’t include this coverage, so condo owners need to make sure they purchase it. Both homeowners and condo owners can benefit from personal property protection.

Cost of Homeowners and Condo Insurance by State

To get a better idea of what each type of insurance costs, let’s look at the average condo insurance vs. homeowners insurance costs by state.

As with most insurance, you can lower your premiums by choosing a higher homeowners insurance deductible.

State	Condo Annual Premium	Home Annual Premium
Alabama	$541	$1,611
Alaska	$396	$1,078
Arizona	$400	$927
Arkansas	$539	$1,540
California	$535	$1,133
Colorado	$417	$1,680
Connecticut	$399	$1,662
Delaware	$431	$936
Florida	$964	$2,193
Georgia	$493	$1,424
Hawaii	$310	$1,239
Idaho	$420	$820
Illinois	$398	$1,187
Indiana	$354	$1,124
Iowa	$295	$1,083
Kansas	$439	$1,780
Kentucky	$390	$1,246
Louisiana	$748	$2,212
Maine	$342	$991
Maryland	$310	$1,165
Massachusetts	$444	$1,672
Michigan	$369	$1,059
Minnesota	$312	$1,515
Mississippi	$600	$1,727
Missouri	$416	$1,444
Montana	$382	$1,319
Nebraska	$355	$1,664
Nevada	$424	$849
New Hampshire	$332	$1,092
New Jersey	$450	$1,340
New Mexico	$397	$1,143
New York	$553	$1,471
North Carolina	$456	$1,221
North Dakota	$320	$1,408
Ohio	$319	$969
Oklahoma	$631	$2,119
Oregon	$364	$761
Pennsylvania	$385	$1,046
Rhode Island	$500	$1,743
South Carolina	$500	$1,426
South Dakota	$307	$1,351
Tennessee	$473	$1,344
Texas	$790	$2,128
Utah	$269	$778
Vermont	$345	$1,032
Virginia	$352	$1,123
Washington	$374	$960
Washington, D.C.	$369	$1,388
West Virginia	$313	$1,051
Wisconsin	$280	$876
Wyoming	$379	$1,299

Condo data courtesy of Ramsey Solutions; home data from Hippo Insurance

Condo Insurance vs Homeowners Insurance Cost

Once someone is ready to buy homeowners insurance or condo insurance, price is likely top of mind. When it comes to the average condo vs. homeowners insurance cost, homeowners is $1,680 per year and condo is $429 per year.

Types of Condo Insurance

There are a few types of condo insurance to be aware of:

•   Personal property. When someone has personal property protection, they can be reimbursed for the cost of repairing or replacing their belongings, such as clothing and electronics, up to a certain amount.

•   Loss of use. If the owner needs to leave their condo to stay in a hotel during repairs after a covered incident occurs, loss of use coverage can help pay for things like hotel stays and dining out.

•   Liability. Liability coverage can help out if the condo owner is legally responsible for damage or injuries caused to someone else due to an accident that occurs in their condo.

•   Dwelling. This type of coverage steps in to pay for replacing or repairing everything in the condo unit (starting from the drywall in) after a covered loss.

•   Loss assessment. If an accident occurs in a shared area of a condo’s property (like the pool, stairs, or clubhouse), then the HOA master policy is the first line of defense. However, if damages exceed the amount that this policy will cover, then the residents may end up responsible for covering the remaining costs, which is where loss assessment coverage can come to the rescue.

Recommended: The Difference Between Homeowners Insurance and Title Insurance

Condo Insurance Benefits

While the HOA does have some insurance coverage that protects parts of condo units, residents really need to have their own condo policies to make sure they’re fully protected. The benefits of condo insurance are many, from covering repairs to replacing belongings after a break-in to paying medical bills after a guest slips and falls.

Condo owners who are still unsure what sort of policy to choose may benefit from reading How Much Home Insurance Do I Need?

Types of Homeowners Insurance

These are the main homeowners policy options:

•   HO-1: Only dwelling protection. Also known as hazard insurance.

•   HO-2: Includes personal belongings and extra perils on top of basic coverage.

•   HO-3: Includes dwelling, belongings, and liability coverage. This is the most popular type of coverage.

•   HO-4: Applies to policyholders who rent out their home and want liability and personal property coverage.

•   HO-5: This is a comprehensive policy that usually applies to brand-new homes and comes with extra coverage.

•   HO-6: The term HO-6 is another way of saying condo insurance.

•   HO-7: This type of coverage is for mobile homes.

•   HO-8: Robust coverage for older and historical homes.

It’s always possible to change homeowners insurance policies if someone decides they want more coverage.

Homeowners Insurance Benefits

The type of homeowners policy someone has influences the benefits of their policy. Generally speaking, the point of this insurance is to financially protect homeowners from disastrous events that can destroy a home, but it can also protect against theft and liability.

If you have a mortgage, homeowners insurance may be required by your lender.

The Takeaway

If someone owns a home or a condo, they need some type of insurance coverage to protect themselves from financial hardship. Homeowners policies typically include dwelling coverage for the building itself, while condo policies do not. Both cover the contents of the home, and may include liability coverage too. The average annual cost of a homeowners policy is $1,680, while the average annual condo policy is $429.

If you need a new homeowners policy, you can turn to SoFi. We teamed up with Experian to deliver homeowners insurance built for the 21st century — without brokers. Policies are customizable, and getting a quote online takes just minutes.

With Experian, you can easily bundle your home and auto insurance. And there are no fees or paperwork.

FAQ

What is the key difference between a homeowners and a condo policy?

The main difference between condo and homeowners insurance coverage is what each type of insurance protects. Condo insurance only protects the interior of the condo whereas homeowners insurance protects the entire property including the outside of the home and the land around it.

Which type of property insurance coverage is more expensive?

Generally homeowners insurance is more expensive (average cost of $2,777 per year) than condo insurance (average cost of $759 per year). That being said, the location, size, and repair cost of the property can lead to a condo being more expensive to insure than a single family home.

What’s the difference between HO3 and HO6?

An HO3 policy protects a single family home with dwelling, belonging, and liability coverage. An H06 policy on the other hand is designed for condo owners to protect the inside of the condo, as well as providing belonging and liability coverage.

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Photo credit: iStock/miniseries

Insurance not available in all states.
Experian is a registered service mark of Experian Personal Insurance Agency, Inc.
Social Finance, LLC ("SoFi") is compensated by Experian for each customer who purchases a policy through Experian from the site.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Flood insurance is designed to help homeowners, renters, and business owners cover losses caused by a flood. You can buy it to protect a building, the possessions in that building, or both.

Most standard homeowners policies don’t cover flood damage. So this separate insurance coverage is your best option for repairing or replacing property after rising water rises enters your home. In some areas, mortgage lenders can make buying flood insurance mandatory. Even if your lender doesn’t require flood insurance, you may want to consider it.

Read on for information that can help you decide if a flood policy should be part of your insurance coverage.

What Is Flood Insurance?

According to the Federal Emergency Management Agency (FEMA), just one inch of floodwater can cause up to $25,000 in damage. And that damage probably won’t be covered by your homeowners or renters insurance. You can, however, purchase a standalone flood insurance policy to help cover your losses.

A flood insurance policy is meant to cover losses directly caused by flooding or, as FEMA describes it, “an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.”

If your sewer backed up after heavy rainfall, or rising inland or tidal waters flooded your property, the damage would likely be covered by flood insurance. But if the backup wasn’t caused by flooding, the damage wouldn’t be covered by flood insurance. (Whether it’s covered by your homeowners insurance depends on your individual policy.)

Most people get their flood policy through the National Flood Insurance Program (NFIP), which is managed by FEMA and works with a network of insurance companies across the country. But some private insurance companies also offer their own flood policies, which are not government-backed.

Recommended: Mortgage & Homeowners Insurance Definitions

What Is Included in Standard Flood Insurance?

The NFIP offers two types of flood insurance coverage: one that covers buildings and another that covers the owner’s or renter’s personal contents.

A policy purchased through the NFIP can reimburse up to $250,000 in building damage and typically covers:

•   Foundation walls, anchoring systems, and staircases

•   Detached garages

•   Electrical and plumbing systems

•   Furnaces and water heaters

•   Fuel tanks, well water tanks and pumps, and solar energy equipment

•   Appliances, including refrigerators, stoves, and built-in dishwashers

•   Permanently installed cabinets, paneling, and bookcases

•   Permanently installed carpeting and window blinds

An NFIP policy can provide up to $100,000 in personal property damage, and typically covers:

•   Personal belongings, such as clothing, furniture, and electronic equipment (TVs, computers, etc.)

•   Valuables (like original artwork and furs) up to $2,500

•   Portable and window air conditioners

•   Washers and dryers

•   Microwave ovens

•   Carpets that may not be included under building coverage

•   Curtains and other window coverings

Recommended: A Guide to All Things Insurance

What Doesn’t Flood Insurance Cover?

There are a few things NFIP flood insurance doesn’t cover, even if the damage is directly caused by flooding. Items that aren’t covered include:

•   Any property that’s outside the insured building (such as a well, septic system, deck or patio, fences, seawall, hot tub or pool, and landscaping)

•   Cars and most other self-propelled vehicles and their parts

•   Cash, coins, precious metals, stock certificates, and other valuable paperwork

•   Damage from mold or mildew that could have been prevented by the property owner

Flood insurance also doesn’t cover costs incurred if you have to live in temporary housing because of damage to your property. Unfortunately, neither will the “loss of use coverage” you may have through your homeowners policy. (Loss of use coverage pays those expenses only when the reason you’ve been displaced is covered by your homeowners policy.)

What Does Flood Insurance Cover in the Basement?

The NFIP’s coverage for flood damage in the basement is limited to some specific (usually permanent or attached) items and cleanup. Some examples of what should be covered include:

•   Central air conditioners

•   Fuel tanks and the fuel in them

•   Furnaces and water heaters

•   Sump pumps, heat pumps, and well water tanks and pumps

•   Electrical outlets, switches, and junction and circuit breaker boxes

•   Unfinished drywall for walls and ceilings

•   Attached stairways and staircases

•   Foundation elements and anchoring systems required for building support

Most personal property kept in the basement isn’t covered, including clothing, computers, TVs, and furniture.

Where Can You Get Flood Insurance?

Federal flood insurance isn’t sold directly by the federal government. Instead, you can buy NFIP policies through private insurance companies, under what’s known as a Write Your Own (WYO) program.

The NFIP partners with more than 50 insurance companies, so you may be able to work with the same insurance agent or broker who helped you purchase your home and auto policies to get flood coverage.

You can get help finding an NFIP provider online at floodsmart.gov/ flood-insurance-provider or by calling the NFIP at 877-336-2627. You also can also check into any private, non-government-backed flood insurance policies that are offered in your area.

You may want to look at including flood insurance as part of your overall personal insurance planning. Don’t wait until you hear predictions of a storm heading your way to start inquiring about a policy, though. There is typically a 30-day waiting period for a flood insurance policy to go into effect.

How Much Does Flood Insurance Cost?

Like most insurance, the cost of a flood policy can depend on the coverage type (building and/or personal contents), the size and age of the building covered, the risk level in your location (based on your flood zone), and other factors, including whether you’re buying a private or NFIP policy.

According to a 2022 Forbes Advisor analysis of flood insurance rates, the average cost of one year of coverage with an NFIP policy is $995. And though that’s not nearly as much as the average cost of a homeowners policy, it can still be a hit to many household budgets.

You may be able to lower the cost of a flood policy by choosing a higher deductible. You can also elevate your home’s electrical panels, heating and cooling systems, and other utilities so they’re less vulnerable to water damage.

For renters, the NFIP offers contents-only policies for as low as $99 annually.

You can also look for a competitive quote on a private flood policy that isn’t backed by FEMA and the NFIP. Just make sure you’re getting a fair price from a stable company that is capable of paying out claims in the event of a major flood.

When Is Flood Insurance Required?

If you have a government-backed mortgage and your home or business is in a high-risk flood area, you are required to have flood insurance. If you don’t have a government-backed loan, your lender may still require that you purchase a flood policy. Even lenders in moderate- to low-risk locations may make it a loan requirement. (You may also be interested in Is Homeowners Insurance Required to Buy a Home?)

Who Should Buy Flood Insurance?

Knowing your designated flood zone can help you decide whether you want to prioritize purchasing flood insurance. You can find your zone by entering your address at the FEMA Flood Map Service Center at MSC.FEMA.gov.

Structures in zones A and V are at the highest risk, while those in zones B, C, and X are considered at moderate to minimal risk. Keep in mind, though, that you can still experience flood damage even if you don’t live in a high-risk zone. According to NFIP data, more than 20% of all insurance claims come from moderate- to low-risk zones.

If you’re moving to a new area where flood insurance isn’t required, you may want to speak with your real estate agent or neighbors about the area’s history and potential for flooding.

How Much Flood Insurance Do You Need?

In many ways, shopping for flood insurance is similar to how you buy homeowners insurance: Calculating how much you’ll need will depend on what you plan to protect and what it might cost to replace if it’s destroyed.

In fact, your homeowners insurance company may give you an idea of what it might cost to rebuild or repair your home if it’s damaged. Then you can add on the value of your furnishings and other personal possessions to decide how much flood insurance you need. (If you’re a renter, you can purchase a policy that covers only your belongings.)

Remember, there are limits to how much coverage you can get through an NFIP policy ($250,000 for a building and $100,000 for the contents). If your needs go beyond those limits, you may want to consider buying excess flood insurance through a private flood policy.

The Takeaway

Most homeowners insurance policies don’t cover flood damage, which can leave a big gap when it comes to protecting your home and belongings. Purchasing a separate flood insurance policy can help fill that gap, and it can be an important part of your overall insurance planning. Flood policies can cover the building itself, its contents, or both. Make sure you understand what isn’t covered by your policy, such as personal belongings stored in the basement or outside. An average flood insurance policy for homeowners costs $995 a year.

How can SoFi help? While we don’t offer flood insurance, we have teamed up with top carriers to help you find reliable homeowners and renters insurance online. With SoFi, you can easily search for the coverage you need at a price you can afford.

Let SoFi help you find the protection you need for your home, life, and vehicle.

FAQ

What losses are covered by flood insurance?

A flood insurance policy covers direct physical losses caused by a flood. That could mean repairing or replacing your home, or the furnishings and other belongings in your home, or both.

How do I know if I’m in a flood zone?

Everyone is in a flood zone, but some areas are at a higher risk than others. You can find your zone by entering your address at the FEMA Flood Map Service Center at MSC.FEMA.gov.

Is flooding covered by homeowners insurance?

Some types of water damage are covered by a standard homeowners policy, but flooding usually is not.

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Photo credit: iStock/onurdongel

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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The average annual cost of flood insurance through the National Flood Insurance Program (NFIP) is $850 for California homeowners. But renters, who would only be insuring their personal possessions and not the building they’re in, can expect to pay much less for their coverage.

The cost of insuring your rental home’s contents still can vary significantly, depending on several factors, including if you live in a high-risk area, the coverage amount you want, and the deductible you choose.

Read on to learn more about purchasing flood insurance as a California renter, including what it can cost and why you might choose to purchase a policy to protect your belongings.

What Is Flood Insurance?

While most renters insurance policies cover some types of water damage (from a burst pipe or an overflowed toilet, for example), a standard renters policy typically doesn’t cover flood damage that comes from outside the home or from underground sources.

To be sure your furniture, electronics, and other belongings are protected if waters rise and flooding affects your rental home, you may need to buy a separate flood policy that will help you repair or replace what you’ve lost.

How Can Renters Get Flood Insurance?

Most people get their flood coverage through the NFIP, which is managed by the Federal Emergency Management Agency (FEMA). The NFIP works with a network of insurance companies across the country to provide policies.

FEMA’s flood insurance for renters and others isn’t sold directly by the federal government. Instead, you can purchase an NFIP policy through an authorized insurance company, under what’s known as a Write Your Own (WYO) program. The NFIP works with more than 50 insurance companies, so if an agent or broker helped you purchase your renters or auto policy, you can probably work with that same person or organization. If not, you can get help finding an NFIP provider online at FloodSmart.gov, or you can call the NFIP at 877-0336-2627.

You also may want to check into private, non-government-backed flood insurance policies that may be offered in your area. These policies have different coverage limits, premiums, and deductible amounts than what an NFIP policy offers and can be a good fit for some needs. Just be sure your quote is coming from a stable company that is capable of paying out claims in the event of a major flood.

What Is Covered by Flood Insurance?

The NFIP offers two types of flood coverage. You can get a policy that covers a building only, a policy that covers only the contents in the building, or you can get coverage for both a building and its contents.

It’s up to a building’s owner to decide whether to buy flood insurance for their structure. Renters only have to worry about getting coverage for the possessions they keep in their rental condo, apartment, or house.

What does flood insurance cover for renters? An NFIP contents-only policy can provide up to $100,000 in personal property damage and typically covers items like:

•   Personal belongings, including clothing, furniture, and electronic equipment (TVs, computers, etc.)

•   Valuables, such as original artwork (up to $2,500)

•   Portable and window air conditioners

•   Washer and dryer

•   Microwave or convection oven

•   Rugs

•   Curtains and other window coverings

What Isn’t Covered by Flood Insurance?

Most personal property kept in a basement — including money, furniture, clothing, and electronics — won’t be covered by NFIP flood insurance. So if you’re renting a basement apartment (even if it’s a walkout basement), you’ll want to be clear about what can and can’t be insured.

Items you keep outside the building also may not be covered under an NFIP policy, including your car, bicycle, or plants.

NFIP flood insurance also won’t cover the costs you may incur if you must move to temporary housing because of flooding damage. (If you have renters insurance with “loss of use coverage,” you may be out of luck there, too. Loss of use coverage typically pays out only when the reason you’ve been displaced is covered by your renters policy — and as noted above, the standard renters policy doesn’t cover flooding damage.)

Keep in mind that private flood policies may have different coverage exclusions.

Recommended: The Cost of Repairing a Plumbing Leak

Is Flood Insurance Required for California Renters?

Flood insurance isn’t legally mandated for renters in California, or anywhere in the U.S. And though your landlord can require renters insurance, a landlord can’t make renters purchase a separate flood policy.

However, if you feel your personal property could be at risk, you may want to consider adding flood protection.

Residents may worry more about their risk from earthquakes and wildfires, but according to the Public Policy Institute of California, much of the state is vulnerable to flooding. The valleys are susceptible to overflowing rivers. Some coastal areas are unprotected from high tides and storm-driven waves. Deserts and areas burned by wildfires may be hit by flash flooding. And urban areas with poor drainage systems and lots of concrete are at risk of flooding from heavy rains.

FEMA says just one inch of floodwater can cause up to $25,000 in damage. And without a flood policy, the cost of replacing your ruined belongings would fall to you.

How Can You Assess Your Rental’s Risk?

Knowing your designated flood zone can help you decide if you want to prioritize purchasing flood insurance for your rental. You can find your zone by entering your address at the FEMA Flood Map Service Center at MSC.FEMA.gov. Buildings in zones A and V are at the highest risk for flooding, while those in zones B, C, and X are considered at moderate risk.

Even if you don’t live in a high-risk zone, you can still experience flood damage. More than 20% of all insurance claims come from moderate- to low-risk flood zones, according to NFIP data.

If you’re new to the state or your city — or even if you’ve just moved to a new building — you may want to speak with your neighbors or landlord about the history and potential for flooding.

How Much Is Flood Insurance for Renters?

The NFIP offers contents-only policies for as low as $100 annually. Your premium can vary based on several factors, including the items you plan to protect and their replacement cost.

Remember, with an NFIP contents-only policy, the maximum amount of coverage you can get is $100,000. If your needs go beyond that threshold, you may want to consider buying excess flood insurance through a private flood policy. Or you may find a private policy alone is a better fit for you.

If it seems as though adding a flood policy on top of the cost of renters insurance might be beyond your budget, you may be able to lower the premium by raising your deductible amount. And your insurance agent can probably make other suggestions to keep the cost down.

It might make sense to sit down and look at how renters insurance for flooding would fit — along with life, car, health, and standard renters insurance — as part of your overall personal insurance planning. Don’t put off the decision to purchase until forecasters are predicting a potential flood event, though. There is typically a 30-day waiting period for an NFIP flood insurance policy to go into effect.

Recommended: Different Types of Insurance Deductibles

The Takeaway

FEMA offers flood insurance for renters, known as contents coverage, for as low as $100 a year through the National Flood Insurance Program (NFIP). But the cost of an NFIP policy or a private (non-government-backed) flood policy can vary significantly depending on where you live and what you want to protect. Flood insurance is a standalone policy, so the premium would be on top of whatever you may be paying for renters insurance. (Most renters insurance policies don’t cover flood damage.)

While SoFi doesn’t offer flood insurance, the National Flood Insurance Program offers coverage that can protect you from expensive damage.

If it’s time to reevaluate your overall insurance plan, SoFi can help. SoFi teams with top carriers to help you get reliable coverage with the convenience of shopping for insurance online. With SoFi Protect, you can search for the coverage you need — for your home and belongings, life, and car — at a price you can afford.

Let SoFi help you build a plan that protects the people and things you love.

FAQ

Is there flood insurance for renters?

Yes. Renters can get contents-only insurance through the National Flood Insurance Program (NFIP) or a private (non-government-backed) flood policy.

Can my landlord require flood insurance?

No. Flood insurance is not legally mandated in any state, and landlords can’t require renters to carry it.

Will my bicycle, kids’ toys, and other things I store outside my apartment be covered by flood insurance?

An NFIP contents-only policy won’t cover items that are kept outside, and there are also limits on what an NFIP policy will cover in a basement.

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Photo credit: iStock/Cunaplus_M.Faba

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Insurance for a 2022 model sports car costs on average $2,152 annually. The cost difference between insuring a sports car and a standard vehicle can range from a couple hundred dollars to a few thousand dollars. The average cost for a conventional car is $1,567.

To help you decide if purchasing a hot new ride makes sense, we’ll provide details about how much insurance costs for a sports car, and the factors that can raise or lower your premiums.

Recommended: How to Get Car Insurance

What Is Sports Car Insurance?

“Sports car” is a common term used for small, low-built cars designed for performance at high speeds. Sports car insurance then refers to typical auto insurance for a sports model. Drivers generally have to pay more to insure a sports car because of the higher sticker price and greater perceived risk.

Sports cars usually have top-of-the-line engines that drivers can easily push to high speeds, upping the likelihood of an accident or speeding ticket. Sports cars tend to be more expensive to repair and replace because their parts are costly to manufacture. As a result, insurers charge drivers more to cover sports cars.

Need to brush up on your vehicular vocabulary? Check out our roundup of car insurance terms.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

How Much Does Insurance Cost for a Sports Car?

For a 30-year-old driver, sports car insurance can range from $1,857 for a Mazda MX-5 to $4,823 for a Maserati Quattroporte S GranSport. Keep in mind that these numbers are averages. Your costs will depend on many factors, such as your age and the age of the car, security features installed in the vehicle, the state you live in, and how much you drive.

Parents and teens alike may benefit from our insurance tips for first-time drivers.

Recommended: How to Lower Car Insurance

Average Cost of Insuring a Sports Car

See below for the average cost of insuring a sports car, by make and model:

Make and Model	National Average Rate
Maserati Quattroporte S GranSport	$4,823
Maserati Ghibli S Q4 GranSport	$4,208
BMW M8 xDrive	$3,907
Audi R8 5.2L Spyder Quattro	$3,863
Nissan GT-R Nismo	$3,829
BMW M5 Competition xDrive	$3,777
Tesla Model S	$3,567
Porsche 911	$3,261
Dodge Charger	$2,930
Jaguar F-Type	$2,751
Dodge Challenger	$2,317
Chevrolet Corvette	$2,420
Mazda MX-5 Miata	$1,857

What Do Insurance Companies Consider To Be Sports Cars?

While insurance companies don’t have a strict, universal definition for sports cars, they typically have powerful engines with more horsepower but weigh less than sedans. Sports cars get their name from the sport of racing, which inspires their engine specs and body shape. Manufacturers design sports cars to be small, fast, and maneuverable.

Car enthusiasts and connoisseurs appreciate the expertise and craft that go into making sports cars. But anyone can get behind the wheel of these thrilling and potentially dangerous vehicles. Those dangers have financial implications, so insurance companies charge increased premiums. Still, it’s possible to find affordable car insurance for many sports models.

What Coverage Do You Need for a Performance Car?

Because of a sports car’s higher value, drivers tend to choose maximum vehicle coverage over minimum car insurance. Full coverage can vary but tends to include the following:

Liability Insurance

If you’re at fault for an accident, liability insurance covers the cost of injuries and property damage to the other people involved. It can also cover legal fees and court costs if someone sues you after an at-fault accident. Most states require some level of liability insurance.

Comprehensive and Collision

This coverage provides complete damage coverage for your vehicle, whether it’s beat up by a storm or after an accident. If you lease or finance your sports car, your leasing agent or lender will likely require this coverage.

Uninsured / Underinsured Motorist

UM coverage protects you if you collide with someone with limited or no auto insurance. In an accident where someone else is at fault and they don’t have enough insurance, UM will cover your medical bills up to policy limits. Some states require UM coverage.

Recommended: How Much Car Insurance Do I Need?

Personal Injury Protection

PIP insurance covers medical bills, lost wages, and funeral expenses after an accident, no matter who caused it. Some states require this type of coverage.

Gap Insurance

When a newer car is totaled, standard insurance will reimburse you the car’s actual cash value (ACV), which may be less than the amount left on your loan or lease. Gap insurance covers the gap between the vehicle’s ACV and the amount you owe, minus the deductible.

Learn more about how gap insurance works.

New Car Replacement

New car replacement operates similarly to gap insurance by covering the cost of purchasing the same make and model vehicle that was damaged — after the deductible.

Recommended: How Much Does Insurance Go Up After an Accident?

Which Sports Car Has the Cheapest Insurance?

The sports car that’s cheapest to insure is the Mazda MX-5, with an $1,174 average premium, per Quadrant Information Services. That may be because Mazda is known as one of the safest car brands on the market, according to U.S. News.

For a deep dive into the process, read this take on how to get car insurance.

Which Sports Car Is the Most Expensive to Insure?

According to Kelley Blue Book, the Maserati Quattroporte S GranSport is one of the most expensive sports cars to insure, costing $4,823 annually on average. Maserati is a renowned exotic car manufacturer, whose vehicles are both expensive and exclusive. The Quattroporte is a supercharged luxury sports sedan.

Recommended: How To Save on Car Maintenance Costs

How Can You Save Money on Sports Car Insurance Rates?

Although sports cars are expensive to own, you can lower the cost of car insurance with the following tips:

Take Advantage of Discounts

Insurance companies reward drivers with discounts for various efforts, such as avoiding tickets and driving less. As a sports car driver, you can do the following to reduce insurance costs:

•   Install an anti-theft device.

•   Do the bulk of your driving with another car. For example, you could commute with an economy car and take your sports car out on weekends.

•   Keep a clean driving record free of accidents and tickets.

•   If you have multiple vehicles, insure both with the same company for a price reduction.

•   Purchase your homeowners or renter’s insurance from the same company providing your auto policy to receive a discount.

•   Pass a driver safety test.

•   Install a tracking device to record your driving habits.

Increase your Deductible

Deductibles and premiums have an inverse relationship. If you choose a high deductible (what you pay before your insurance covers the remaining costs), your monthly premiums fall. Therefore, you can change your policy to take on more of a financial burden if you get into an accident, making your policy more affordable on a monthly basis.

Shop Around

You don’t know what you don’t know, and that is very true of insurance costs. Requesting quotes from multiple insurance companies allows you to compare insurance packages and find the best price. Regular personal insurance planning sessions can make sure you’re saving money on all of your policies.

Switching car insurance may seem counterintuitive if you think you have an excellent price, but it doesn’t hurt to check. Bundling is often helpful in reducing insurance costs, but you might find an outstanding deal with an insurer that beats the discount your current insurance company offers. Specifically, online insurance may offer lower rates than traditional insurers.

The Takeaway

Sports cars are fast, fun vehicles that make driving exciting — and expensive. While their agility and speed are enjoyable, their insurance costs can be prohibitive, especially for younger drivers. However, you can reduce insurance costs by avoiding the most expensive sports cars, such as Maseratis and Audis, and driving more modestly priced models like the Mazda MX-5 or Chevrolet Corvette. Also, older “classic” sports cars don’t have the same insurance upcharge as newer models. And of course, it pays to keep a clean driving record.

Whether you’re considering a sports car, auto insurance, or other significant financial decision, shopping around is crucial. SoFi’s auto insurance tool allows you to compare rates from the top insurers to help you get the best deal. You’ll find rates in real time with no finagling.

SoFi streamlines your insurance shopping journey to make sure you arrive at a good price.

FAQ

Is it more expensive to insure a sports car?

Sports car insurance costs about $1,850 to $4,800 annually, depending on the car model and age. Conversely, conventional cars cost about $1,728 to insure in the United States on average.

Does insurance go up when you buy a sports car?

Since sports cars tend to be faster than standard cars (which increases the probability of an accident), it usually costs more to insure one.

How can I lower my insurance on my sports car?

You can lower your insurance on your sports car by building a favorable credit score, maintaining a clean driving record, bundling multiple types of insurance, and fulfilling specific conditions from your insurance company. For example, you might install a car alarm or reduce your monthly miles driven to receive discounts on your premium. Also, shopping amongst insurance companies for the best deal can help you find a lower rate.

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Photo credit: iStock/Arand

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If you’re considering buying your first truck, you may be wondering how much the insurance is going to run. While the cost of insuring a truck varies based on a few factors, the national average is $1,731 per year — about the same as car insurance.

Keep reading for more insight into how much truck insurance costs, and how to lower your premiums.

Recommended: How to Lower Car Insurance

Differences Between Auto, Truck, and Commercial Truck Insurance

There are really only two types of auto insurance. The type of auto insurance you need depends on what purpose you’ll use your vehicle for.

•   Personal auto insurance. If someone wants to buy or lease a truck for personal use, then they’ll need a personal auto insurance policy. This may be referred to as auto insurance or truck insurance.

•   Commercial auto insurance. Companies that use cars and trucks for business purposes need this policy instead.

Both types cover property damage, bodily injury, and legal expenses related to auto accidents. Commercial auto insurance takes coverage a step further, usually featuring higher claim amounts and protection against more complex legal issues.

Curious about the legal minimum insurance drivers can carry? Find out about minimum car insurance requirements by state.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

How Much Does It Cost to Insure a Truck?

Exactly how much is insurance for a pickup truck? The average annual cost of personal auto insurance for a truck is $1,731.

The typical cost of commercial truck insurance depends on the type of business. Transport truckers haul general freight, such as automobiles, food, and products for retail stores. Specialty truckers cover a single type of freight, like logs or garbage. The average annual premium for commercial insurance is $640 for specialty truckers, and $982 for transport truckers.

Recommended: The Cheapest Way To Rent a Car

Does It Cost More To Insure a Truck or Automobile?

It isn’t necessarily more expensive to insure a truck over a car. Trucks are actually the second cheapest vehicle type to insure.

One exception is the age of the driver. College students may have a harder time finding affordable car insurance for their truck.

Average Cost of Car Insurance for Truck by Make and Model

How much is insurance for a new truck? Below are the average monthly rates for 10 major truck makes and models. You may figure out at a glance whether it’s worth switching car insurance companies.

Make and Model	Average Liability Rates	Average Collision Rates	Average Comprehension Rates	Average Full Coverage Rates
Chevrolet Colorado	$21	$37	$31	$102
Ford Ranger	$21	$39	$31	$105
Ford F-150	$27	$39	$31	$110
RAM 3500	$22	$33	$48	$121
GMC Sierra 1500	$28	$50	$31	$122
Toyota Tundra	$28	$44	$35	$122
Chevrolet Silverado 1500	$27	$47	$35	$124
RAM 1500	$30	$47	$35	$127
Ford F-Series Super Duty	$27	$51	$39	$132
Chevrolet Silverado 2500HD	$30	$57	$35	$138

Make and model aren’t the only things that determine auto insurance prices. For example, first-time drivers are more likely to pay more for auto insurance.

What Is the Cheapest Pickup Truck to Insure?

Many factors can impact the cost of car insurance, such as the type of deductible you choose. Generally, the Chevrolet Colorado is one of the more inexpensive pickup trucks to insure with an annual average full coverage rate of $102.

It’s important to note that even if someone chooses a model that is known to be inexpensive to insure, their personal driving history impacts the insurance rate they’re offered. A driver with a clean record typically will get a better rate, whereas the same insurance goes up after an accident.

Recommended: How to Calculate Expected Rate of Return

Cheapest Car Insurance Companies for Trucks

It’s always a good idea to shop around to get several quotes (you can include traditional insurers and online insurance companies. This will give you a good idea of which companies offer the most complete coverage and affordable rates.

There are several ways to lower your car insurance, but the easiest may be to choose a higher deductible. The following companies offer the lowest annual rates for car insurance, per U.S. News:

Insurer	Annual Premium
USAA	$1,000
GEICO	$1,148
State Farm	$1,267
Nationwide	$1,327
Travelers	$1,371
American Family	$1,372
Progressive	$1,533
Farmers	$1,917
Allstate	$2,047

Before shopping for quotes, it’s helpful to brush up on car insurance terms to better understand what type of coverage each provider is offering.

Truck Features That Impact Insurance Costs

Truck features don’t directly impact the cost of insuring the vehicle — unless they increase the overall cost of the car. The more expensive a truck is, the more it costs to insure.

Any features that increase the likelihood of theft or the cost of maintenance and repairs can also drive up the price of insurance for trucks.

Recommended: How To Get Car Insurance

The Takeaway

The average annual rate for personal car insurance (as opposed to commercial) for a truck is $1,731. The overall cost of the truck greatly impacts the price of insurance. The more expensive a truck is, the more it costs to insure it. For this reason, special features may also increase your cost. Perhaps surprisingly, truck insurance is not more expensive than car insurance. In fact, pickups are the second cheapest model to insure.

Are you paying too much for truck insurance? SoFi makes it possible to compare multiple auto insurance rates from top companies, without having to visit multiple websites.

Real rates, with no bait and switch.

FAQ

Do trucks cost more to insure than cars?

Generally, trucks don’t cost more to insure than other types of cars. They’re actually usually the second least expensive type of car to insure. How much it costs to insure a car is usually based more on the overall cost of the car than the type of car someone chooses to drive, so an inexpensive truck may cost much less to insure than a luxury SUV or sedan.

Is insurance high on a pickup truck?

Insurance isn’t necessarily high on a pickup truck. Trucks usually cost less to insure than other types of cars. That said, high-value pickups can cost a lot to insure. The higher a truck’s (or any car’s) price, the higher the insurance premiums.

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Photo credit: iStock/JMichl

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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