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Classic Car Insurance

Insuring a classic car in Ontario is much different than traditional car insurance. There are several terms that are used when referred to classic car insurance such as:

  • Vintage Car Insurance
  • Antique Car Insurance 
  • Collector Car Insurance
  • Classic Car Insurance

Typically the term classic car applies to a vehicle that is at least 15 to 25 years old. However, some people believe that classic cars are vehicles that are pre – 1950’s. 

How Classic Car Insurance Works

Classic Car Lincoln

Typically classic car insurance costs are much lower than a regular car insurance policy. The reason for this is many classic car owners have another vehicle they use for day to day needs and their classic car is only used occasionally. Classic cars are typically not driven by their owners on a daily basis throughout the year. A classic car insurer will take into consideration the time and money you put into the vehicle as well as it’s collectible value. Classic car insurance is very customized. You basically pay for what you need.  

Insurance Providers Requirements For Classic Car Insurance

Due to the low cost of insurance premiums to insure a classic car, insurance providers have some basic rules that must be followed. These rules include:

  • Good Driving Record

Many insurers state the driver must have a clean driving record for at least 10 years, without any penalties or major incidents in the last 3 years. 

  • Annual Mileage

Insurance providers stipulate that the classic car cannot be used as your primary vehicle. Usage is limited to occasional pleasure driving, shows, and exhibitions. Some insurance providers may place a maximum annual mileage clause in the policy. You may also have to show proof to some insurers that you own a primary vehicle other than the classic car. 

  • Original Parts

Some insurers also stipulate that the classic vehicle must have a certain proportion of original parts. 

  • Storage

Some classic insurance providers are very strict on the storage of classic cars. They may stipulate it must be kept in a garage or even in a locked facility. 

Other conditions and restrictions may apply. 

Types of Insurance Coverage For Classic Cars

classic Volvo

Types of insurance coverage for classic cars may include:

  • AVC – Agreed Value Coverage
  • Spare Parts Coverage
  • First Right of Refusal on Salvage
  • $2,000,000 Liability 
  • Family Protection
  • Accident Benefits
  • Collision and Comprehensive

How Much is Insurance For a Classic Car?

There is no flat rate for insurance pertaining to classic cars. There are many variables that will dictate what the insurance premium will be for a particular classic car.

How Old Does a Car Have to Be to Be a Classic in Ontario?

Typically, a car is at least 15 to 25 years old to be recognized as a classic car, however, in some circumstances your vehicle needs to be over 25 years old. 

How to Qualify For Classic Car Insurance

To qualify for classic car insurance, your classic car cannot be your everyday car and must meet certain criteria as set out by the insurer, such as being driven less than 8,000 km per year and in good working condition.

What is Considered a Classic Car in Ontario?

A classic car in Ontario is a vehicle that is at least 15 years old, an antique, or collectible. 

What Cars Are Eligible For Classic Insurance?

Depending on the insurance company you are dealing with, the most common cars that are eligible for classic car insurance are antique cars, classic cars, post-war cars, retired de-militarized vehicles

Is Insurance Cheaper For Classic Cars?

Cadillac classic vintage

Yes, insurance for classic cars can be much cheaper as they are typically not a person’s primary vehicle. 

Most Common Classic Cars 

There are several classic cars in circulation, however, the most commonly insured classic car categories are as follows:

  • Classics
  • Military
  • Antique
  • Muscle cars
  • Tractors
  • Post-War

Classics

Under the classic car insurance category, Classics are vehicles that were built between 1924 and 1948, often featuring custom coachwork.

Military

Under the classic car insurance category, the Military category refers to retired Military vehicles that have been de-militarized from the year 1985 and older.

Antique

Under the classic car insurance category, Antique vehicles are vehicles that were built between the years 1896 and 1948.

Muscle Cars

Under the classic car insurance category Muscle cars, these vehicles are American made V-8 engine cars which were built between the years 1968 and 1972.

Tractors

Under the classic car insurance category Tractors, these vehicles are restored tractor models that are at least 30 years old.

Post-War

Under the classic car insurance category, Post-War vehicles refer to vehicles that were popular and built following World War II.

Why Is Classic Car Insurance Different From Standard Car Insurance?

Classic Maserati

In a typical standard car insurance policy, the policy is based on the depreciation of the vehicle over time, meaning as the vehicle ages, the payout would be less so it would not be sufficient for a classic car.  Typically classic cars increase in value with age, so a standard car insurance policy could cause the vehicle owner to lose a great deal of money in the event the classic car received extensive damage or was written off. However, classic car insurance still offers the same kind of coverage such as collision and liability but usually at a much lower rate. The lower rate reflects the limited amount of time the classic car is driven.  The least amount of time the vehicle is on the road, the lower the risk is to the insurer, as there is less of a chance of becoming involved in a motor vehicle accident. There are different endorsements that can be added to a classic car insurance policy such as special towing services, spare parts coverage, and original replacement parts. Classic car insurance is designed for antique and collectible vehicles that people purchase for personal use or investment purposes. 

Shop Around For Classic Car Insurance

Classic car insurance providers may differ from one another in certain aspects, it’s best to shop around and speak to a classic car insurance specialist to ensure you obtain the best rate and sufficient coverage you need for your classic car.

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