How a classic insurance company can help you protect your investment
Owning a classic car is a true hobby of passion. If you’ve found that perfect antique car and invested in restoring and maintaining it, you’ll want to protect that investment with insurance. Insuring your classic car is different from insuring your regular ride. Standard auto insurance can leave you with far less than your vehicle is worth in the event of an accident or theft. Luckily, classic car insurance ensures you receive the true value of your vehicle and it’s typically cheaper so you can enjoy the ride without the worry!
WHAT IS A “CLASSIC CAR?”
Not every antique vehicle qualifies as a classic car. A significant difference is that a classic is only driven for pleasure. To qualify as a classic car, owners must only drive their cars to exhibitions, in parades and for the occasional trip to the ice cream parlour or corner store. It’s more about showing off your vintage baby than getting from point A to point B.
The investment in your car is also an essential factor. Classic cars must be restored and maintained to qualify for coverage.
HOW OLD MUST A CAR BE TO BE CONSIDERED “CLASSIC” FOR INSURANCE?
When it comes to classic car insurance, age matters! Classic car insurance in Ontario is often used to cover vehicles that are over 25 years old. To be considered a classic, a vehicle must be at least 10 years old and are often more than 20 years old. In Ontario, some vehicles less than 15 years old may be eligible for classic car insurance. It’s best to ask your classic insurance company for more information on whether your car is considered “classic.”
DO I REALLY NEED “CLASSIC CAR” INSURANCE?
Absolutely! If you have a vintage, classic or collectible car, you’ll definitely want classic car coverage in Ontario. You’ll be better off with classic coverage over traditional insurance because, without it, you may not be covered adequately for the true value of your vehicle. If you’ve put the time and money into restoring and maintaining your classic or antique car, then you’ll want to protect your piece of history and that investment.
Classic cars don’t depreciate the same way regular cars do. They usually appreciate in value! In Ontario, daily drivers car insurance policies usually include ACV (actual cash value) coverage. In the event of an accident or theft, the driver is paid out the ACV amount, which factors in the value of the vehicle and any depreciation.
Classic car insurance policies, on the other hand, include agreed value coverage instead of ACV coverage. If your classic car is valued at $50,000, in the event of an accident or theft you’ll receive the agreed value, the full $50,000. Without classic car coverage, you could end up with a payout far less than what your vehicle is worth.
WHAT DOES IT COVER?
Classic car insurance in Ontario covers driving your hobby car to shows and expos, taking your classic car out for a spin around on a sunny day, and additional coverage is available for special events like weddings.
Classic car coverage can also cover you for spare parts and emergency services like towing.
HOW DO I QUALIFY?
Qualifying for classic car insurance may seem strict, but by following the conditions, you’ll likely save money with lower premiums and better coverage.
To qualify for classic car insurance coverage in Ontario, you must be the registered owner of the vehicle, be at least 25 years old, have a minimum of 10 years continuous driving experience in Ontario, have a clean driving record with no more than two minor convictions, and be clear of at-fault accidents. You must also have another passenger vehicle insured as a daily driver.
Maintaining your classic car as a hobby vehicle is also important. You must drive the vehicle less than 5,000 kilometres a year, it must remain within North America, and you can’t race your classic car or take it off-road.
Safe storage is also important to qualify for coverage. Your classic insurance company may require you store your hobby car in a garage or in a secure spot.
Some insurers may require your hobby car to be made up of a certain proportion of original parts.
DETERMINING “PLEASURE VEHICLE MILEAGE”
If your classic car is designated a pleasure vehicle, it means that no driver is using the car daily to drive to work, school or anywhere else. Usually, a pleasure vehicle is a secondary vehicle.
Annual kilometres driven are used to determine if your vehicle is a pleasure car. Annual odometer readings can often be used to determine how often you are driving your classic car.
IS CLASSIC CAR INSURANCE CHEAPER?
It’s a common misconception that because it’s a classic car, it’s more expensive to insure. Older cars are typically cheaper to insure than brand new vehicles with all the bells and whistles. However, depending on the make and model of your classic car it could be subjected to higher premiums. It’s important to note that the year has less of an impact on your insurance premiums. For example, if you have an antique car that was produced overseas and requires special parts that are expensive to replace, or even if it has a high theft-rate, it will cost more to ensure than a newer vehicle.
To help you reduce your premiums, consider the following:
- Driving frequency – Pleasure driving only during the summer months costs less than driving your regular vehicle on a daily basis all year round.
- Storage – When your car is not in use, storing it in a secure location could reduce your rate.
- Driving record – You can reduce your rate by having a good driving record with zero infractions.
KEEPING THOSE PREMIUMS LOW
The less you drive your classic car, the less likely you are to have an accident. Fewer clicks help keep premiums low. How and where you store your vehicle increases or decreases car theft opportunities and affect your premium rates. The safer the storage, the more you save.
Also consider your deductible. Lower deductibles mean higher premiums and vice versa. In Ontario, the minimum deductible is $300. Deductibles of $500, $1,500 and $2,500 are common and result in lower premiums.
You may be able to put mandatory road, liability and collision benefits coverage on hold while your classic car is in storage so it’s worth it to see if your vehicle will qualify as a seasonal vehicle.
Your classic car insurance company may provide lower premiums if your car is in a museum or a garage year-round.
Safe drivers are also rewarded. Maintaining a good driving record can also reduce your rates.
Classic car coverage can save you money and give you peace of mind, so you can enjoy the ride you’ve worked so hard to build. Get a free quote today from Gifford Carr Insurance Group!