Classic Car Insurance in Canada

If you own a vintage car or are planning on buying one, then having a reliable insurance policy in place is a must. Even a small act of vandalism can quickly send its financial value crumbling down. Plus, the repairs for such delicate automobiles can be very expensive. 

A classic car insurance policy will cover your vehicle in case of damages, theft, and accidents. Depending on the coverage type, it can even cover medical bills if you sustain injuries.

But before talking to anyone offering classic car insurance in Ontario, Alberta, or any other part of Canada, you should know what it is, how it works, and what's covered. This guide aims to equip you with all of that information in the simplest form possible. So make sure to read it till the end.

What is Classic Car Insurance?

Let's talk about 'classic cars' first. Any vintage vehicle that's typically more than 20 years old but preserved or restored to be kept as a collectible is a classic car. 

Now, if we talk about classic car insurance, then these vintage collectibles hold both sentimental and monetary values. So it's essential to have a special type of coverage for them if they get damaged or stolen. 

Even though standard auto insurance can cover them, classic insurance generally costs substantially less. Plus, it offers benefits tailored to suit classic vehicles, so getting one for your antique beauty means a win-win.

How Does Classic Car Insurance in Canada Work?

It's pretty simple. You need to meet some classic car insurance requirements, which we will discuss in the next section. If your car is eligible, then an appraiser will carry out a category valuation, after which, 'agreed value policy' will be used. This means that you and the insurer will agree to an amount that will be paid to you if you lose the car in theft, fire, or crash.

However, classic car insurance is only used for 'classic' cars in the truest sense of the word – meaning there will be restrictions to when and how often you drive it. The policy only covers the vehicle for pleasure use or events like car shows, club meetings, and parades, etc. – not for regular use.

Many insurance policies do cover things like occasional cruising on a nice sunny day, but you’ll have to confirm this kind of usage first. The benefit of these strict rules is that the coverage cost for classic vehicles is way cheaper than standard cars even if your car's total value is much higher than theirs.

Classic Car Insurance Ontario Requirements:

There are several eligibility requirements for classic car insurance in Ontario, such as mileage cap, 10-25+ years of car age, and regular maintenance, etc. Not meeting them can result in denial of policy application or even claims. Let’s see some of the most common ones below:

• The policyholder should have at least 5-10 years of driving experience

• He/she should not have over one at-fault car accident or moving violations in the past three years

• The vehicle should be safeguarded from environmental elements and parked in a fully enclosed storage facility

• The car will not be used for daily activities; only for occasional outdoor pleasure or exhibitions (different insurers have different restrictions for this)

• The car will not be used for racing

• The car needs to be original to some extent, such as 50% of parts should be original (again, different insurers have different requirements for this)

Note: Insurers can decline coverage for vehicles that are in rough conditions, heavily modified, have sustained damages previously, or are made for off-road driving.

Vehicles That Classic Car Insurance Brokers Might Not Approve:

Now that you have a pretty good idea of the kind of vehicle that will be approved, there are some exceptions to the types of automobiles covered by classic car insurance brokers. Let’s see what those are:

• Commercial-use vehicles

• Scooters or motorbikes

• Dune buggies

• RC vehicles or motorhomes

• Lowriders (vehicles with a high level of customization)

• Cars used for off-roading, utility purposes, or camping

Coverage Types with Classic Car Insurance in Canada:

There are many standard and optional insurance policies that you can get for your vintage vehicle. However, the most common coverage types for classic car insurance in Canada are:

• Collision & Comprehensive Coverage: These two types cover a range of issues, including car damage in accidents, vandalism, theft, animal collision, flood, fire, and even riots. 

• Liability Insurance: If you take your car out for a spin and end up running it into someone; this coverage type will come in handy. It will pay for injuries, damages, and even legal defense in case you get sued. Only get this coverage if you are planning on occasionally taking your car on the road. 

• Uninsured Motorist: This is where your medical bills will be covered if someone crashes into you and doesn’t hold an insurance policy. The terms of this policy depend on which province you live in; some cover only medical bills while some also pay for car damages.

• Auto Parts Coverage: As the name suggests, this policy covers parts of the car if they are damaged. Some classic car insurance companies in Canada offer coverage for spare parts as well.

Parting Words:

Classic cars usually have a very high monetary value that appreciates with time, but on top of this; they hold sentimental values. So even though you are not required to specifically choose classic car insurance in Canada, you should buy one anyway. Your vintage ride is too precious to be left uncovered.

Plus, the best part of this particular coverage is that it is significantly cheaper than the standard auto insurance, but you get paid in full when the car gets damaged or stolen. 

Just make sure to only use a reputable classic car insurance broker for advice and quotes. You do not want to work with someone who lacks the knowledge and resources to cover vintage cars.