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Are you a classic car owner? If so, you probably spend a considerable amount of money, time, and effort to keep your car in tip top condition. And, like all automobiles in Canada, classic cars also need insurance. You may not realise that your classic car could cost you much less in insurance than a regular vehicle. Here we cover everything you need to know about classic car insurance…

Quick read:

Is my car a ‘classic vehicle’?

It’s important to make sure that you don’t try to insure a car that isn’t considered a classic car. Any car made before 1980 is usually called a classic car, although there are some exceptions.

Some newer vehicles might be considered a ‘collectable’ and those vehicles also qualify for specialised car insurance. This usually only applies to deluxe or limited-edition vehicles. If you try to register an average 1988 Toyota for example, it won’t qualify for specialised insurance for classic or collector vehicles. Insurance coverage for classic vehicles might be called vintage insurance, collectable, antique, classic and so on. This depends on the individual insurer.

Why choose classic car insurance?

Here are the main reasons to opt for classic car insurance:

You drive your classic car infrequently

If you rarely drive your classic car and it usually sits in your garage, you can save money on your insurance costs. There are some special requirements for collector cars, classic, or antique cars, but if you have a vehicle that qualifies, you can save money on your insurance.

It’s not a regular car

If you register your classic car under a standard insurance policy, you’ll probably spend more money then you need to and you won’t get proper coverage.

In Canada, classic car insurance is calculated in a different way. Cars are usually appraised on an individual basis, rather than on actual statistics. The insurer works on the assumption that your classic car or collector vehicle won’t be driven on a daily basis.

How classic car insurance works

Your everyday, normal vehicle depreciates in price over time. This is how a regular insurer determines the value of this vehicle type. If your classic vehicle has been restored and maintained, it requires different insurance.

A classic vehicle goes up in price because it becomes collectable, so the insurer offers a different insurance rate. In Canada, classic car insurance is usually covered by an insurance provider that specialises in this vehicle type and can better understand your vehicle’s market price.

The insurer works with you, along with an appraiser, and agrees on your vehicle’s value. If your car is stolen, badly damaged in a crash, or destroyed by fire, you’ll be covered for the entire value that you agree to.

Your classic car insurance will cost much less than regular insurance because the vehicle simply isn’t on the road as often. Most insurers recognise that your vehicle is probably only going to be driven in the summer months during fine weather. The insurers understand that you’re likely to be extra cautious because your car is valuable. It’s also unlikely that you’ll use your vehicle on a regular commute, where there’s more danger that it could be damaged in an accident.

Restrictions on classic car insurance

Classic car insurance places some restrictions on you. The most common restriction is how often you’re able to drive a classic vehicle. This usually applies to seasonal coverage, which can be much cheaper.

Most policies will restrict how you drive the vehicle and will usually only cover you for pleasure driving, hobbies that relate to your vehicle, maintenance needs, club meetings etc.

The policy will vary between insurers, but many policies allow you to insure basic pleasure cruising, when the vehicle is in storage, accidents on the road and when the car is in transport to another location.

Summary: Classic car insurance

It’s a good idea to spend some time checking the rates and requirements of various insurers before you purchase classic car insurance. You could work with an insurance broker, or another qualified professional, to find the best insurance for your classic car. Best of luck!