How Much Does it Cost to Insure A Classic Car?

10 minute read Published on Jul 11, 2022 by BrokerLink Communications

Insurance for classic car owners

If you are a classic car enthusiast or collector of vintage cars, then you know how valuable they can be. For this reason, your classic car should be protected at all times, and the best way to do so is by purchasing classic car insurance.

But how much does classic car insurance cost and how can it benefit you? We get to the bottom of that in this article.

To learn more about collector car insurance in Canada, including what it is, how it differs from standard auto insurance, and how you can save money on your classic car insurance policy, keep reading!

What is classic car insurance?

As the name suggests, 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 auto 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.

Luckily, insurance brokerages like BrokerLink understand this and can help you find a flexible and customized classic car insurance policy that meets your needs and budget.

Reasons to purchase collector car insurance for your classic car

There are a number of reasons that drivers of classic cars in Canada choose to purchase classic car insurance. Below is a list of some of the top reasons.

The value of classic cars appreciates

Unlike your typical car, classic cars appreciate in value over time. This is one of the key reasons why standard auto insurance coverage isn’t adequate. If you insure your classic car with a standard car insurance policy, then as time goes by, you will receive a smaller payout from your insurance provider in the event of a total loss.

This is contrary to the trajectory of classic cars, which tend to increase in value as they age, sometimes significantly. Therefore, by purchasing classic car insurance, you avoid the risk of losing a significant amount of money if your car was ever stolen or severely damaged.

Classic cars are not driven frequently

Another reason to purchase classic car insurance instead of standard car insurance is that vintage vehicles are not driven as frequently as everyday vehicles. Standard auto insurance is designed for cars being driven regularly, but most classic cars are only driven for small amounts of time.

Assuming your collector car is not your primary vehicle, classic car insurance is a must. Insurance companies recognize that classic cars are driven infrequently and they set their rates accordingly because they know that the less time a vehicle is on the road, the lower the chances of it being involved in a collision.

Therefore, drivers of classic cars in Canada need classic car insurance if they only drive their vintage vehicles occasionally.

You need to protect yourself on the road

A third reason to purchase collector car insurance - and this goes for any type of car insurance - is to protect yourself on the road. No matter what kind of car you drive or how frequently you drive it, car insurance is the best way to protect yourself from the financial risks that come with driving.

Car accidents happen all the time, even to safe and responsible drivers. Prepare yourself for the financial ramifications of a collision, ranging from medical expenses for injuries to vehicle repairs for property damage, by purchasing a quality classic car insurance policy.

You are in compliance with the law

One final reason to purchase classic car insurance in Canada is that it puts you in compliance with the law. If you plan to drive your classic car, no matter how infrequently, you are legally required to purchase car insurance.

Auto insurance is mandatory in every Canadian province and territory, though the minimum coverage requirements vary. For example, in Ontario, all drivers must have valid car insurance policies that include $200,000 in third-party liability coverage, uninsured automobile coverage, accident benefits coverage, and direct compensation - property damage coverage.

Driving your classic car without insurance is illegal and if caught, you could face hefty fines. In some provinces, uninsured motorists may even face jail time and license suspensions. Avoid the risks that come with driving your vintage vehicle without insurance by purchasing classic car insurance.

Mandatory auto insurance coverage for classic cars in Canada

Since auto insurance is mandatory for drivers of all vehicles, including classic cars, in Canada, you must purchase a policy that meets the minimum requirements in your province.

Minimum requirements vary but may include the following four coverage types:

  • 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 third-party liability coverage 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.
  • 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 be not covered by health insurance, like prescription medications, physical therapy, or rehabilitation, as well as loss of income.

Make sure your vintage vehicle qualifies for classic car insurance

Not all classic cars qualify for classic car insurance. Therefore, you must ensure yours does before purchasing a policy. Generally speaking, to qualify for classic car insurance coverage, your vintage vehicle cannot be your primary vehicle and cannot be driven over 8,000 kilometres per year.

It usually also has to be 25 years of age or older, though this varies by the insurance company. Insurance companies tend to prefer that your collector car is stored safely in an enclosed structure, such as a garage. They may also stipulate that drivers must have a minimum of 10 years of driving experience and do not have any serious driving infractions in recent years.

Finally, your classic car should be fully restored and in excellent condition. Keep reading for more information on the types of vehicles covered by classic car insurance and which vehicles may not qualify.

Types of vehicles covered by classic car insurance

  • Collector and classic cars manufactured in 1979 or before
    • Antique – cars built between 1896 to 1948
    • Classics – built between 1924 and 1948 featuring custom coachwork
    • Post-War – popular cars manufactured in the years following World War II
    • Muscle Cars – American made, V-8 engine cars made between 1968 and 1972
  • Collector trucks and SUVs that are 25 years or older (stock), or 15 years or older (modified)
  • Military vehicles – retired, demilitarized vehicles from 1985 and older
  • Classic and antique tractors – restored vintage models 30 years of age and older
  • Car trailers for vehicles and street rods
  • Retired commercial vehicles that are 25 years or older
  • Classic vehicles under construction for active restoration projects

Vehicles that may not qualify for classic car insurance

  • Commercial-use vehicles
  • Motorcycles or scooters
  • Vehicles used for off-roading, camping, or utility purposes
  • Vehicles with 700 horsepower or greater (no matter whether they've been manufactured or modified)
  • Dune buggies
  • Motorhomes or recreational homes
  • Vehicles used for racing or autocross events
  • Vehicles that are highly customized for appearance and suspension

Ultimately, if you aren’t sure whether your classic car qualifies for collector car insurance in Canada, contact BrokerLink. We will ask for the details of your car and how often you drive it to help you determine whether classic car insurance is right for you.

Factors that determine the cost of classic car insurance

Insurance companies will consider a wide variety of factors when determining classic car insurance premiums. The following variables will likely be taken into consideration when calculating how much you will pay for classic car insurance:

  • Your age
  • Your marital status
  • How frequently you drive the vehicle
  • The make, model, and year of the vintage vehicle
  • Your claims history
  • Your driving record
  • Your sex
  • Your location
  • Your driving experience

Why classic car insurance costs less than standard auto insurance

Classic car insurance tends to cost less than standard auto insurance because vintage vehicles are not driven as frequently as everyday cars. In fact, in order to qualify for classic car insurance, your classic car usually cannot be your primary vehicle.

Your classic car insurance policy may even stipulate that the use of your vehicle is limited to car shows, parades, and pleasure driving up to a set limit. As a result, your premiums will be lower because your odds of getting into a collision are also lower.

How to save money on collector car insurance

Save money on your collector car insurance policy by taking advantage of the tips and tricks below.

Increase your deductible

Reduce your collector car insurance premium by increasing your deductible. Doing so can reduce how much you pay for classic car insurance.

Choose annual over monthly payments

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

Install safety devices in your classic car

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.

Since valuable cars like classic vehicles may be greater targets for theft, insurance companies will recognize your safety efforts and may give you a discount on your insurance policy.

Work with an insurance broker

One final way to save money on classic car insurance is by partnering with a trusted insurance brokerage like BrokerLink. BrokerLink’s insurance advisors are car insurance experts, which means we can help you find the best coverage at the lowest price for your classic car.

We also know the qualifications vehicles must meet to be eligible for classic car insurance and which coverage options are best suited to vintage vehicles. Take advantage of BrokerLink’s resources and expertise and save money on classic car insurance.

Tips for buying classic cars

If you’re thinking of purchasing a classic Canada in Canada, we’ve put together a list of tips to ensure a seamless buying experience.

  • Hire an appraiser: If you’re new to the world of classic cars, consider hiring an appraiser before purchasing one. Hiring someone with experience and knowledge of different makes and models will be a huge benefit when it comes time to make a decision. An appraiser can also offer their professional opinion on how much work is necessary to restore and maintain the car.
  • Shop around and attend car shows: Finding your dream car is no easy task. That is why we recommend shopping around as much as possible. Car shows are a great way to gain exposure to a wide range of collector cars. When deciding on a vintage vehicle that’s right for you, make sure to consider the model, year, rarity, condition, price, and style of car.
  • Be careful about license plates: Once you’ve purchased a vintage vehicle, be careful about the license plates you put on it. Vehicles over 15 years old qualify for specialty collector plates, while cars over 30 years old qualify for antique plates. As cool as these plates may look, remember that you are only permitted to drive with specialty or antique plates if you’re on your way to a car show or car club meeting. This means that before taking your vehicle out for a leisurely Saturday drive, you must make sure they are equipped with the regular provincial license plates.
  • Contact an insurance brokerage: As soon as you’ve found your dream car, contact a local insurance brokerage to learn about your insurance options. BrokerLink is the leading insurance brokerage in Canada and can help you with all your classic car insurance needs. Keep in mind that you will need to purchase insurance before you hit the road in your new vintage vehicle, so it’s best to contact a broker as soon as possible after purchasing your car.

Contact BrokerLink to learn more about classic car insurance or obtain a free quote

For more information on collector car insurance or to receive a free, no-obligation quote on your classic car insurance policy, contact BrokerLink today.

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 quotes on your behalf.

We also encourage classic car drivers to take advantage of BrokerLink’s free quotes. We offer free car insurance quotes to all drivers, regardless of the type of car they drive. Contact us by phone, email, or in person to request a free quote today. You can also use our online quote tool to request a classic car insurance quote right now

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What are you waiting for? Contact BrokerLink to learn more about classic car insurance in Canada.