What You Need to Know about Classic Car Insurance in Ontario to Protect Your Prized Possession
Do you have a cherished vintage car? If so, you’re better off with classic car insurance instead of standard coverage.
Classic car insurance in Ontario is a must for hobby cars. If you have a classic stock car, or a modified car, of course you want the best coverage available for this prized possession. Classic car insurance offers more protection than standard car insurance, and often at a much lower cost.
Since classic car owners typically only use these vehicles at events and expos, the cars do not get much regular use. This limited use means classic cars are less likely to be damaged in an accident, thus having fewer insurance claims than regular-use vehicles.
Unlike standard policies that account for depreciation over time, a classic car’s value will likely increase. As a result, classic car insurance policies and premiums reflect this value.
If you’re not sure where to start with classic car insurance in Ontario, consider these factors and request a quote from a local insurer.
Qualifications For Classic Car Insurance in Ontario
Before shopping for car insurance, you must first find out if you and your car actually qualify for classic car insurance. Here are the most common factors and restrictions that determine if your car qualifies for this insurance in Ontario:
- You are at least 25 years old;
- You are the registered owner of the vehicle;
- You’ve got 10 years of driving experience in Ontario;
- You have a good driving record;
- The car is only used for hobby purposes;
- The car’s use is below 5,000 kilometers a year;
- The car will remain in North America;
- You will only travel to car shows—family vacations with the vehicle are not usually permitted;
- You will never race or take your car off-road;
- The car is stored in a secure location, such as a rental storage unit, residential garage, or a private barn; and,
- You have another passenger vehicle for regular daily use that you insured under a separate policy.
While these may seem like strict restrictions, they are in place to protect your valued car from damage. Aside from these common guidelines for classic car insurance, your insurer may have additional restrictions, so check if you qualify by contacting a local insurer for a quote.
Benefits of Classic Car Coverage
Compared to standard car insurance, classic car insurance is typically cheaper since the vehicle isn’t used as often as a regular car. Insurance companies in Ontario provide additional special features and benefits for classic cars such as:
- The insurer’s (or a recommended appraiser’s) distinct knowledge to assess a classic car’s value;
- Assignment of an agreed replacement value from the insurer to cover the cost for total loss of the vehicle;
- Customizable coverage specific to you and your car’s needs, such as frequency of use, and type of car—stock or modified/special interest;
- Lower premiums for vehicles that are in a museum or a garage year-round;
- Lower premiums for limited mileage—you only drive your car to shows and/or only on weekends;
- Coverage for cars that are also insured in the U.S.;
- Emergency services coverage;
- Spare parts coverage; and,
- Additional coverage for special events—i.e. weddings and touring.
Stock and Modified Cars
Car insurers place hobby cars in one of two categories, stock and modified. Stock—classic or antique—vehicles are at least 25 years old and have most of their original parts or the equivalent.
Modified—special interest—vehicles are 15 to 24 years old and customized with modified parts. These vehicles usually have higher insurance premiums than stock vehicles, but the appraised value of the car will ultimately determine the premium. And while the premiums go up with the vehicle’s value, they are still usually much lower with classic car insurance than with standard insurance.
To find out if classic car insurance in Ontario will cover your cherished vehicle, speak with a local insurer who specializes in hobby cars. Once you insure and protect your vehicle with the right insurance, you can start admiring your prized possession worry free—or at least with as little worry as possible given that you have such a valuable car.