How much does it cost to insure a classic car?

Whether you're thinking about buying a classic car or have long been a classic car enthusiast, owning an older car means more than having another set of wheels--it's about preserving and celebrating a piece of history. Insuring a classic vehicle isn't the same as purchasing coverage for newer vehicles or a car you use as a daily driver. It takes thoughtful consideration and specialty policies that protect the unique features and needs, whether you're driving a vintage Porsche or a 1967 Mustang.

In Canada, classic car insurance is designed to provide tailored coverage that takes into account the agreed value, rather than the actual cash value of your classic car. It also considers the use of luxury accessories or collectible parts to ensure your classic and collector cars don't depreciate over time.

Snapshot of what makes collector car insurance different

• Insurance premiums: Premiums range from $250 to $1,500 annually.

• Top benefits: Agreed value coverage, protection for classic car club events and parades.

• Usage restrictions: Not meant for everyday vehicles, annual mileage is capped.

In this guide, we're going to break down everything you need to know about classic car insurance, including how you qualify, what is and isn't covered, how to lower your premiums, legal requirements, and more. Stick around for more information.

What is classic car insurance?

Classic car insurance is a type of auto insurance policy designed to protect classic, collector, or vintage vehicles. Like any type of insurance, classic car insurance protects the policyholder from financial losses that may arise while in possession of a classic car. Whether your classic car is driven for pleasure or is an investment, don’t make the mistake of insuring it with a standard insurance policy. Doing so usually translates to inadequate coverage and paying more than you have to. Since a collector car is not used the same way as an everyday vehicle, it requires unique insurance coverage.

In Canada, a classic car is generally defined as being 20 to 30 years old or more, but this can differ between insurance providers. For example, some companies may classify collector cars as 15 years old or more and antique vehicles as 30 years old or more. The key component of classic car insurance is to qualify, the car must be in "good" or "restored condition," and not used as an everyday mode of transportation, otherwise it would need coverage under regular car insurance.

What makes classic car insurance distinct from regular policies is that it offers flexibility to classic car owners by taking into account the agreed-upon value of the vehicle, rather than its actual cash value, which factors in depreciation. Therefore, in the event of a total loss, your insurance company will reimburse you for the vehicle's full amount, not its depreciated value--ultimately, giving classic car owners peace of mind on and off the road. Let's take a closer look at the differences between how classic car insurance works versus standard coverage below:

Who needs classic car insurance?

Those who should consider getting classic car insurance include:

1. Car owners who have rare, restored, or vintage car models.

2. Drivers who use their classic car in shows, parades, or for summertime drives.

3. Collectors who want to protect their investment.

Classic car insurance premiums across Canada

How much you need to pay to insure your classic car will depend on a few factors, including which province you reside in, the make and model of the classic car you own, its value, how often you drive, and more. Here's a quick breakdown of what you can expect per province, according to Rate Lab:

• Ontario (Toronto): Approximately $1,400 per year ($117 per month)

• Alberta (Calgary): Approximately $1,000 per year ($83 per month)

• Québec (Montreal): Approximately $1,100 per year ($92 per month)

• Nova Scotia (Halifax): Approximately $1,200 per year ($100 per month)

Classic Car Insurance Canadian Average: The average for this type of coverage across the country as a whole is between $250 and $1,500 annually, according to Hard Bacon. Factors that influence these rates include:

• Your age and driving experience: Older drivers with more years behind the wheel tend to pay less than those under 25 or over 65, given that they are statistically less likely to engage in risky driving behaviour and cause at-fault accidents.

• Vehicle value: A classic vehicle with a higher value will cost more to insure than one with a lower value. For example, a 1969 Chevrolet Camaro worth $35,000 versus a 1989 VW Beetle worth $10,000.

• Your claims history: The more insurance claims you have on file, the more likely you are to file another in the future. As such, you can anticipate paying more for your coverage than someone who has no claims on their file.

• Your driving record: Numerous traffic violations and accidents will classify you as a high-risk motorist, which will lead to more expensive premiums compared to drivers with no violations on their driving record.

• Your location: Urban areas with high auto theft rates and traffic congestion tend to have higher insurance rates compared to rural areas.

• Yearly storage and security: Cars stored in a secure garage with anti-theft devices get lower rates.

Eligibility requirements: What classic cars qualify for classic car insurance?

Not all "classic cars" qualify for classic car insurance in Canada. You need to meet strict criteria to ensure the vehicle is properly maintained, in good condition, and used occasionally. Let's take a closer look at what you need to meet to qualify for classic car insurance premiums:

Common eligibility criteria

Basic eligibility rules that everyone should know:

• Vehicle age: Generally speaking, your classic car will need to be at least 20 to 30 years old or older, including out-of-commission military vehicles, retired commercial vehicles, and antique tractors.

• Condition: Original condition or professionally restored.

• Mileage restrictions: Often limited to under 10,000 km per year.

• Storage: Must have proper storage during times of the year when it is not in use, such as a temperature-controlled garage or storage container.

Exceptions & grey areas

Other possible options that may be offered:

• Partially restored cars: Some classic car insurance companies may offer limited coverage to vehicles that are only partially restored.

• Heavily modified vehicles: These might be eligible under classic car insurance coverage, but it can vary between providers.

If you meet these requirements, then you're likely a good candidate for classic car insurance. If not, you may want to speak with your insurance company to determine whether there is anything you can do to the classic car that would allow you to qualify in the future.

What's covered (and what isn't) by classic car insurance in Canada

Remember, all motorists in Canada must have some form of standard auto insurance policy to drive legally on public roads. Depending on which province or territory you reside in, here's some insight into what classic car insurance policies include and what they don't:

Mandatory standard car insurance for classic cars

Let's take a look at what's obligatory when it comes to insuring classic cars:

Third-party liability coverage

Third-party liability coverage provides legal protection if you injure someone else or cause property damage to another person’s property on the road. This type of coverage can help pay for medical expenses associated with bodily injuries or repairs of damaged cars, as well as any applicable legal fees and settlements up to the coverage limit. Each province has a minimum amount of basic liability coverage that drivers must carry, typically ranging between $200,000 and $1,000,000.

Direct compensation - property damage coverage

Direct compensation - property damage coverage protects an insured vintage vehicle and its contents against property damage, as long as the policyholder is not liable for the collision that caused the damage. However, starting January 1, 2024, it is an optional insurance policy for all Ontario drivers. It is, however, mandatory for those in Alberta and New Brunswick.

Uninsured automobile coverage

Uninsured automobile coverage protects you and any passengers in your classic car if you get into an accident with an at-fault driver who is either uninsured or underinsured. This type of coverage can also protect you in the event of a hit-and-run.

Accident benefits coverage

If you, a passenger, or a pedestrian requires medical attention following a collision, accident benefits coverage can help. You can claim this coverage no matter who was at fault for the accident. It can help pay for medical expenses that may not be covered by health insurance, like prescription medications, physical therapy, or rehabilitation, as well as loss of income.

Optional classic car coverage

Next let's take a look at coverage options that aren't required:

Comprehensive coverage

Comprehensive insurance will cover the cost of repairs or replacements of your antique vehicle if it is damaged in a non-collision event, including theft, vandalism, fire, falling objects, and severe weather conditions.

Collision coverage

Collision coverage covers the cost of repairs or replacement if you get into a car accident that damages your vehicle, regardless of fault.

Roadside assistance

Roadside assistance comes in handy when you're on the road, covering the cost of towing, emergency services, help with tires, fuel top-ups, and more, in case your classic car breaks down unexpectedly.

What's not covered by classic car insurance policies

It's important to note what won't be covered by your classic car insurance policy, such as:

• Daily driving: Most classic car insurance policies do not allow you to drive your vehicle daily.

• Commercial use: Using your classic car as a way to generate income, such as by renting it out to others, is not covered.

• High mileage: Exceeding the agreed annual mileage cap for your coverage can invalidate any claims you may file if your car is damaged.

Antique car insurance specific benefits

Vintage cars have special perks such as:

• Agreed value coverage: Classic insurance comes with agreed value policies that will replace the total cost of your vehicle without factoring in depreciation, in the event of a total loss.

• Restoration coverage: This feature covers damages or losses to the parts and/or labour involved in restoring your vintage car.

• Protection for spare parts: Policies may also include a separate coverage limit for vintage or hard-to-find parts.

• Event coverage: Plan on attending a car show or participating in a parade? This will protect your car during transportation and while on display.

How to save money on classic auto insurance

Compared to standard auto insurance, classic car insurance coverage is relatively more affordable. That said, there's no reason why you shouldn't save even more money on your collector car insurance when it's entirely possible and easy to do. Let's take a closer look:

Increase your deductible amount

The higher your deductible, the lower your premium. Just make sure it’s an amount you can comfortably afford to pay more out of pocket if something goes wrong.

Pay your insurance premium upfront, not monthly

If you can afford to pay for your classic car insurance policy annually, doing so can save you money. Monthly or quarterly instalment payments often come with administrative fees that ultimately make it more expensive to pay over time.

Bundle your policies or opt for multi-car insurance

If your classic car isn't your primary vehicle, you may want to consider a multi-car insurance policy. By insuring more than one vehicle under the same plan, you can save up to 15% on your premiums. Alternatively, consider bundling your different insurance plans--whether it be auto insurance, business insurance, or home insurance--with the same insurance company to save 15% off each policy!

Install anti-theft devices on your collectible cars

Equipping a vehicle with safety devices, especially a high-value one like a classic car, may save you money on collector car insurance. When you install anti-theft devices or a security system in your car, you instantly reduce the odds it will be stolen. As classic vehicles are greater targets for theft, insurance companies will recognize your safety efforts and may give you a discount on your insurance policy. Consider devices like immobilizers, dash cameras, and a steering wheel lock.

Work with an insurance broker

Partnering with an experienced insurance broker like the ones at BrokerLink is another great way to save money on your classic car insurance. By working with a broker, you can compare numerous classic car insurance quotes, unlock discounts, and customize your coverage to fit your needs and driving habits.

Bonus tip

Maintaining a clean driving record is one of the easiest ways to secure lower insurance rates. Car insurance companies often reward safe drivers with discounts and other benefits. So, avoid traffic violations and at-fault accidents by following the rules of the road and driving responsibly.

Adding value: Going beyond coverage

Customized classic car insurance is more than a safety net. To get the most value out of your classic car, here's what you need to do:

• Work with an appraiser: To get the most accurate, agreed-upon value policy for your car, work with a certified appraiser before seeking coverage. They’ll document your car’s make, model, modifications, condition, and historical meaning, which you can then take directly to your provider. In fact, many insurers require this information before they'll help you find the best coverage available. Additionally, having an accurate appraisal document will come in handy if you ever decide to sell the vehicle.

• Practice preventive maintenance: Ensuring your classic car is properly maintained is essential if you want to maintain its value, prevent problems, and keep your insurance premiums low. We recommend keeping a maintenance log of all tasks performed throughout the year, following seasonal storage guidelines outlined in your insurance policy, and investing in rust protection and secure indoor storage solutions year-round.

• Consider joining a classic car club: If you're new to owning an antique car, consider joining a club with other enthusiasts in your community. Not only is it a great way to socialize and make new friends, but it's also fantastic if you want to learn more about being a responsible vehicle owner and taking care of your antique car.

• Think about what the car means to you: Whether the vehicle was passed down to you by a family member or you spent years restoring it, choosing a policy that reflects your needs is essential. The key is to balance protection and affordability when you can. Remember, the cheapest option available isn't necessarily the best choice for you.

Legal & regulatory considerations

Remember, regardless of whether you're insuring a new or classic car, you will need to follow the provincial insurance regulations set out in your home province to ensure you remain compliant with the law. Let's take a look:

Minimum insurance requirements by province

• Ontario: Minimum of $200,000 in liability insurance, plus accident benefits, and uninsured motorist coverage.

• Alberta: $200,000 in liability, including accident benefits, direct compensation for property damage.

• British Columbia: $200,000 in liability car insurance, accident benefits, and uninsured motorist coverage.

• Quebec: $50,000 in civil liability, which is equivalent to third-party coverage in other provinces.

• Nova Scotia: $500,000 in liability coverage, direct compensation for property damage, uninsured motorist insurance, and accident benefits.

Depending on which province you're from, you need to ensure that your classic car insurance follows these minimums.

License plates

Most provinces also have requirements when it comes to license plates for classic cars:

• Ontario: “Historic Vehicle” plates are issued for vehicles at least 30 years old.

• British Columbia: Cars built 25 years ago or longer, and limited production vehicles 15 years or older, must have plates from the Collector Vehicle Program.

• Alberta: Classic cars 25 years or older can be registered with special plates, but it's not mandatory.

Learn more with BrokerLink

Insuring your classic car with the right coverage is more than an afterthought; it's an important decision that ensures your pride and joy remains protected on and off the road, year-round. Our expert insurance advisors will be pleased to answer any questions you may have about classic car insurance. They can also walk you through the coverage options, help you determine if your vehicle qualifies for classic car insurance, and obtain classic car insurance quotes on your behalf.

To work with BrokerLink, contact us over the phone to speak with a broker directly. You can also compare quotes from the comfort of your own home using our free online quote tool any time!

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Classic car insurance FAQs

What qualifies as a classic car in Canada?

In Canada, a classic car is typically defined as a vehicle that’s 20 to 30 years old or older, depending on the insurer and the make and model of the vehicle itself.

Can I insure a classic car as my primary vehicle?

No, you can't insure a classic car as a primary vehicle. Most policies have mileage restrictions and are only intended for part-time usage.

What is agreed value coverage, and how does it work?

Agreed value insurance means that you and your provider have agreed upfront on the exact value of your classic car. If it's stolen or written off following an accident, your insurance company must pay you this amount.

How do I get a classic car appraised for insurance?

To get your car appraised, you'll need to higher a professional classic car appraiser who can assess the vehicle's condition, market value, historical significance, and other factors. With this information, you'll then be able to have your vehicle qualify for classic car coverage.

Are classic cars cheaper to insure than regular vehicles?

Yes, classic car insurance tends to cost less than standard auto insurance because vintage vehicles are not driven as frequently as everyday cars.

If you have any questions, contact one of our local branches.