Is there car insurance for sports professionals?

Car insurance for sports professionals usually involves higher limits of liability, higher rates, and extra coverage. Sports professionals usually drive expensive cars that require higher rates for car insurance.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 15, 2020

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Here's what you need to know...

  • Your career can affect your car insurance rates
  • There are several different types of coverage you can buy, and knowing the difference of each can save you money in the long run
  • Comprehensive insurance coverage applying to windstorm, hail, vandalism, flood, animal damage, and glass damage
  • Collision coverage necessary to reimburse the owner for collision damage resulting from other automobiles, property, or objects

Unfortunately, sports professionals are so much in public view that their chances of obtaining reasonably priced automobile insurance is poor.

And even though these individuals may be famous, there still need to abide by their specific state’s insurance laws.

Below is a guide to what both athletes and everyday individuals need to know before they buy car insurance.

Start comparing car insurance rates now by using our FREE tool below!

Requirements for Car Insurance

There are several different types of coverage you can buy, and knowing the difference of each can save you money in the long run.

For example:

  • Bodily injury liability subject to state laws in the state of residence
  • Property damage liability subject to the state laws governing the state
  • Uninsured/underinsured motorists coverage is necessary to reimburse the driver and passengers for bodily injury incurred in an accident with such drivers
  • No-fault (PIP) insurance necessary when required by the state
  • Comprehensive insurance coverage applying to windstorm, hail, vandalism, flood, animal damage, and glass damage
  • Collision coverage necessary to reimburse the owner for collision damage resulting from other automobiles, property, or objects

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Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

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Rating Basis for Car Insurance

All of the following factors can all affect the cost of your insurance.

  • Driving record of drivers for the vehicle
  • Where you park your car
  • Gender and age
  • Marital status
  • Vehicle usage
  • Make and model of the vehicle
  • Credit history of the owner of the vehicle

Underwriting Concerns for Sports Professionals

Individuals who participate in sports have more underwriting concerns flagged by insurance companies:

  • Higher limits of liability necessary
  • Professional sports people tend to be young and drive automobiles with high value and high performance, possibly leading to excessive claims and more premium
  • The possibility of vandalism and souvenir-taking from the automobile of a sports figure is higher
  • Drivers not listed on the policy, but often team members of the individual may drive the vehicle
  • Vehicles, even though registered in one state, often travel throughout the United States and, even, in foreign countries
  • Car insurance for foreign countries must be arranged before entering the country

If possible, it is necessary to combat these stereotypes to reduce insurance rates.

Being cautious about your driving, purchasing lower end vehicles, and protecting your vehicles as much as possible from contact with fans will reduce premiums. A clear claims history will help.

High Limits of Liability for Sports Professionals

Considering the opinions that individuals in the public have about the salaries of sports professionals, it is wise, to purchase limits of liability that are higher than usual to protect sports figures from the litigation that may arise from accidents.

Suggested limits of liability are:

  • $500,000/$1,000,000 bodily injury liability
  • $100,000 property damage liability
  • Uninsured/uninsured motorist’s coverage will follow the limits of bodily injury liability

The usual car insurance policy provides coverage for physical damage to the owner’s vehicle on an Actual Cash Value basis. This means that the book value of the vehicle will be paid in the event the vehicle is totaled.

Instead, Choose replacement cost value to pay for the replacement of the vehicle without depreciation.

Assure yourself that the auto insurance physical damage coverage applies to modifications to the automobile.

Consider also discussing the possibility of umbrella coverage to layer over liability limits to provide extra coverage.

When involved in litigation, the owner is responsible for any court costs and damages beyond the insurance policy limits.

Umbrella coverage provides additional protection at a relatively inexpensive cost.

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What does this insurance cost?

Since the limits need to be high for automobile insurance covering sports figures, it is best to request quotations from several different insurance companies.

It has been proven that individuals can save up to 12 percent if quotations are obtained.

Even so, premiums will be higher than those afforded to individuals without the necessity for this coverage.

Where can this coverage be obtained?

Get recommendations from other individuals in the sports business. Some teams have available access to group policies or arrangements with insurance companies.

Otherwise, go to the Internet and choose at least three insurance companies to ask for quotes.

Consult with their agents to determine the coverage necessary for you, ask for quotations.

Be certain that the quotations match from company to company. There are special marketing sites that cater to the needs of sports professionals and allow you to obtain quotations.

Vetting Out Your Insurance Company

Consider these things when looking at an insurance company:

  • Licensing – they will be listed by your state’s department of insurance if they have a valid license to sell insurance in your state
  • Financial stability – with all the weather-related disasters, which have occurred in the United States, some insurance companies have become overstretched financially
  • Claims record – a record of claims that a company has had problems with in the past is kept by states and the insurance industry. Examine these reports

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Where can I find information about a car insurance company?

The following websites are excellent resources when choosing a car insurance carrier:

Consider these difficulties, possibly before you purchase a vehicle if you are a well-known sports figure.

Unfortunately, the price paid for being very good at your sport is equally as onerous as earning a great deal of money and being in the public eye.

If you want to look further into pricing, start comparing car insurance rates now by entering your ZIP code in our FREE tool below!

References:

  1. https://www.geico.com/information/about/
    insurance/auto/
  2. https://www.progressive.com/glossary/comprehensive-and-collision/
  3. https://www.naic.org
  4. https://www.usa.gov
  5. https://www.nationwide.com/umbrella-insurance.jsp
  6. https://www.ambest.com
  7. https://www.standardandpoors.com
  8. https://www.naic.org/cis/

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