Classic Car Insurance Ontario Requirements

rahaAugust 4, 2022

0 266 4 minutes read

Classic car insurance is a type of insurance for classic and antique cars. Classic cars are 15 years old and older, but antique vehicles are older than 25 years.

Contents

What is considered a classic car?

Regardless of what type of car you drive, it is declared by law in Ontario to have valid insurance.

However, the criteria that determine whether a car is classic or not heavily depends on your classic auto insurance provider because each classic car insurance carrier has specific requirements.

How does classic car insurance work in Canada?

First, your car must meet some classic car insurance requirements, which details were discussed. If your vehicle was determined eligible, then you, the driver, must also meet some requirements as well, which we will discuss later on.

After both you and your vehicle are considered eligible, you can take out a classic car insurance policy or an agreed value policy, which means that you and the insurer will decide on a dollar amount for your classic vehicle. This money would be paid to you if your classic car was totaled or written off due to theft, collision, or fire.

Classic Car Insurance Ontario Requirements

This type of auto insurance policy also comes with some restrictions on when and how often you can drive it. Classic insurance companies strictly highlight the fact that a classic car MUST NOT be used as a daily driver, and even some people will ask for proof that the policyholder has a separate daily driver.

What are the classic car insurance requirements in Ontario?

There are a set of eligibility requirements for classic car insurance in Ontario, and not meeting them can result in denial of your policy application. They include:

Is there any car that meets the requirements but still got rejected?

Yes, classic and antique insurance providers are very reluctant to offer coverage for vehicles that are:

Dune buggies
In rough conditions
Scooters or motorbikes
Commercial-use vehicles
RC vehicles or motorhomes
They are made for off-road driving
Heavily modified or Lowriders
Have previously sustained damages
Cars used for, utility purposes, or camping

Most insurance carriers will most likely reject policy applications for classic vehicles in such conditions.

Classic Car Insurance Ontario Requirements

What are the restrictions for classic car insurance in Ontario?

In order to protect your precious classic car, insurance providers designed a policy that is specially made for classic cars and came to the conclusion that they have to set some restrictions to keep such priceless vehicles away from any kind of harm and keep the tradition.

Therefore, by purchasing a classic car insurance policy, you are responsible for following the rules and restrictions for classic car insurance, which are:

1.Usage limitation

Typically, some classic car insurance companies have restrictions on how you use your classic car. Some classic auto insurance carriers will require you to only drive your vehicle to car exhibitions, parades, and other classic car-related activities and nothing else.

There are some that will allow you to take it out for pleasure as well. If your classic vehicle insurance company hasn’t mentioned what uses are acceptable for your policy, you must go ahead and ask to avoid future trouble.

2.Storing the Car

Just like collectors store their collectible items in glass cases in a particular room and dust them every day, insurance companies expect you, the owner of the classic car, to store your one-of-a-kind vehicle in a special location that will keep them safe from any kind of danger such as your garage.

If you don’t have a garage, you can store your prized possession in the following locations:

Carport
Storage facility
Pole barn
Car condos
Storage units
Car hauling trailers
Car Capsules designed for exterior storage
Non-public parking with 24-hour security such as an alarm system, security guard, or video surveillance

The benefits of a classic car insurance

With classic car insurance, you can experience lower premiums since it will be driven less, and when driven, it needs to be driven with caution. Thus, premiums are often lower.

You can update the value of your car on your car insurance policy.

In the event of a total loss, the “agreed value” will be guaranteed to be returned to you.

What coverages are required for a classic car in Ontario?

Surely you want to protect your priceless car as much as you can, and it’s best to carry the following coverages for your classic vehicle.

Collision Coverage: Damages caused by accident with a vehicle or an object like a tree are covered by collision insurance.
Comprehensive Coverage: Comprehensive insurance pays for damage done to your vehicle from incidents other than car accidents, like storms, fires, or vandalism.
Uninsured motorists coverage: If you had an accident that wasn’t your fault and the other driver doesn’t have insurance or has insufficient coverage, this coverage pays for your bodily injuries and property damage.
Liability Insurance: Liability covers other people’s vehicle repairs and medical bills after accidents in which you were at fault. The costs of repairing any property damaged and the medical bills resulting from an accident are covered.
Auto Parts Coverage: This specific type of coverage provides for parts of the car if they are damaged.

Join a classic car club!

Joining a classic car insurance club will get you a discount and a chance to show off your baby and interact with people who share the same interest as you. Some Classic car clubs in Ontario are: