Owning a classic car is exciting and a source of pride and joy for many owners.
Most owners of classic cars put a lot of time, effort, money, and care into maintaining their vehicles. Owning a classic car comes with different requirements, stipulations, and restrictions that most auto insurance policies don't typically require. There are also additional coverage options available for classic cars that would not be necessary for typical automobiles. It is important to speak with your Ontario insurance broker to make sure that your classic car is fully protected by having the right classic car insurance policy.
What Constitutes a Car as ‘Classic’?
The cars that are considered classic may vary depending on which insurance company you are insured with. However, the majority of insurance companies consider classic cars to be cars that are manufactured in 1995 or earlier.
Some insurance companies do consider newer vehicles classic cars if they can be labeled as collectibles, so make sure to speak with your Ontario insurance broker to clarify if your car meets the requirements to be classified as classic.
What are the Most Common Kinds of Classic Cars?
There are a variety of classic cars that are typically insured under classic car insurance. Here is a list of some of the most common ones, along with the years they were made and other distinguishing factors.
Muscle Cars: American made with V-8 engines built between 1968 to 1972
Antique: Between 1896 to 1948
Classics: Between 1924 to 1948
Vintage cars: Manufactured between 1919 and 1930
Post-War: The years following World War II
Military: De-militarized or retired from 1985 or earlier
Tractors: Restored cars that are 30 years or older
Muscle Cars: American made with V-8 engines built between 1968 to 1972
What is Classic Car Insurance?
No matter how often you use your classic car, or how far you dive it, it is mandatory to have insurance. Classic car insurance is a special type of auto insurance that is specifically designed for the protection of classic cars used for pleasure, collectible, or investment purposes. The use and purpose of classic cars differ greatly from regular modern cars, so the insurance for classic cars also differs.
Generally, classic car insurance premiums will be lower than standard auto insurance premiums, as classic cars are driven less frequently.
Classic car insurance offers the same protection that a typical auto insurance policy does, including collision, comprehensive property damage, and bodily injury liability, however, there will be factors unique to classic cars that will affect the insurance premium.
Typically, vehicles in standard auto insurance policies are insured based on an appraisal of their actual cash value, whereas classic car insurance provides coverage for an amount that is agreed upon by the insurer and the owner of the classic car.
Standard cars depreciate over time, losing value. Classic cars are the opposite, as they often appreciate over time and gain value. This means that your already extremely valuable classic car will continue to become more valuable over time. It will be important for owners of classic cars to regularly speak with their Ontario insurance broker to make sure their classic car has the right amount of coverage.
What are the Requirements to Qualify for Classic Car Insurance?
To obtain classic car insurance for your classic car, the car may not be permitted to be used as the primary vehicle for everyday use, and may not be driven more than 8,00 kilometers a year. Some insurance companies will also require the classic car owner to have a clean driving record and for the classic car to be stored in a garage or locked facility when not being used.
Restrictions with Classic Car Insurance
Vehicle Use
As mentioned above, many insurance companies will limit the number of kilometers that classic car owners can drive their classic car to 8,00 kilometers a year. The classic car is also not permitted to be the owner’s primary vehicle for transportation. Some insurance companies may restrict car usage to parades, car shows, and other classic car-related events.
Vehicle Storage
When you don’t have your classic car on the road it can still be subject to damage, depending on where it is stored. Many insurers will inquire about how your classic car is stored when you are not using it and will consider this factor when determining your classic car insurance premium.
Vehicle Modifications
Any changes, modifications, or upgrades done to the classic car should be disclosed to your Ontario insurance broker so they can consider this when calculating your classic car insurance premium.
Drivers’ Age and Driving Record
Similar to standard auto insurance, having a clean driving record will positively impact your classic car insurance premium. Some insurance companies will also factor in the age of the driver.
Time of Day
Some insurance companies may limit the times of day the classic car can be driven.
Other Drivers
Some insurance companies may not allow the classic car to be loaned to and driven by other drivers. Only the drivers listed on the classic car insurance policy will be permitted to drive the car.
Additional Classic Car Insurance Add-Ons To Consider
As mentioned above, typical classic auto insurance policies usually include collision, comprehensive property damage, and bodily injury liability. Classic car owners may want to speak with their Ontario insurance broker about some additional insurance coverages. These could include the following:
Spare Parts Coverage
Spare Parts Coverage Insurance may help to cover additional parts for your classic car that are intended for your classic car but not currently on the car.
Automotive Tools Coverage
Adding automotive tools coverage to your classic car insurance policy will offer coverage for the tools you use to work on and maintain your classic car. This coverage can extend to storage cabinets and toolboxes.
Automobilia Coverage
Automobilia coverage can help to protect collectible or historic items such as hood ornaments, posters, signs, license plates, model cars, other toys, etc.
The time, money, and effort you have invested into your classic car are worth protecting with the right classic car insurance.
Youngs Insurance Brokers can work with you to help find the specific and unique insurance coverage your classic car needs, at the best price possible, to ensure your classic car is protected and is covered for its full value! Contact us today for a free, no-obligation quote.
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Disclaimer: The information provided on this blog is for educational purposes only and is not intended as professional insurance advice. The coverage, terms, and conditions of each insurance policy are unique and subject to individual circumstances. The information provided does not guarantee the availability or suitability of any insurance policy for your specific needs. You should not rely on the information in the blog as an alternative to professional advice from your insurance broker or insurance company. If you have any specific questions about any insurance matter, please consult a licensed insurance broker for personalized advice and guidance.