Whether you drive a classic, collector, or vintage car, you need to be protected at all times. That’s where classic car insurance comes in. Different from standard car insurance in Canada, classic car insurance is designed with antique and collectable vehicles in mind. However, if you are thinking of purchasing classic car insurance, you must be aware of the car age limit.
Generally speaking, insurance companies require that your classic vehicle be a minimum of 25 years in age, though there are some exceptions.
To learn more about the age limit for classic car insurance, as well as how to qualify for it, keep reading.
What is classic car insurance?
Classic car insurance is designed to protect you from financial losses against classic cars that are driven for pleasure or investment purposes. Many drivers make the mistake of insuring their vintage vehicle with a standard auto insurance policy. However, your coverage might be inadequate, and might even be paying more than you have to.
Since a classic car is nothing like an everyday vehicle, it has unique insurance needs. Luckily, insurance brokerages like BrokerLink offer a wide range of flexible and customized auto insurance policies, including classic car insurance.
When you purchase insurance for your classic car, you will receive the coverage you want and need.
Why do I need classic car insurance?
Basic auto insurance in Canada is not enough to cover a classic car and it can be more expensive. Consider the fact that with standard auto insurance, the value of your car depreciates over time. This means that as time moves on, you will get less of a payout from your insurance provider in the event of a total loss.
This is contrary to the trajectory of classic cars, which usually increase in value as they age. Therefore, if they are insured under a basic auto insurance policy, you could risk losing a significant amount of money if the vehicle was ever stolen or severely damaged.
In addition, standard auto insurance is best suited to cars being driven regularly. However, most classic cars are only driven for limited amounts of time. They are not your primary vehicle. Insurance companies recognize this and their classic car insurance rates are set accordingly because they understand that the less time a vehicle is on the road, the lower the odds of it being involved in an accident.
Therefore, you need classic car insurance because standard auto insurance is not designed for vintage vehicles. You also need classic car insurance for the same reason any driver needs insurance while driving, to protect yourself against the financial losses that come with hitting the road.
Classic car insurance policies typically include the same coverage as standard auto insurance: third party liability coverage, uninsured automobile coverage, accident benefits coverage, and direct compensation coverage. With this coverage, you are protected in the event of a collision, bodily injury, and property damage.
Classic car insurance qualifications
To qualify for classic car insurance coverage, your collector vehicle cannot be your primary vehicle. In fact, it cannot be driven over 8,000 kilometres per year. In most cases, the vehicle must also be 25 years of age or older, although this varies by provider. Insurance companies also prefer that your classic car is stored properly, in an enclosed structure, such as a garage.
Generally, insurers require that drivers have a minimum of 10 years of experience to purchase classic car insurance and that they do not have any serious driving infractions in recent years. Lastly, the classic car should be fully restored and in top-notch condition.
Types of vehicles covered by classic car insurance
The following types of vehicles may be covered by classic car insurance in Canada:
- 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
Below is a list of vehicles that may not qualify for classic car insurance, even if they meet the criteria mentioned above.
- 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.
For more information on classic car insurance or to receive a free, no-obligation quote on your classic car insurance policy, contact an insurance advisor at BrokerLink today.