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10 minute read Published on Jul 11, 2022 by BrokerLink Communications
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!
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.
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.
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.
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.
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.
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, and accident benefits 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.
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:
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.
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.
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:
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.
Save money on your collector car insurance policy by taking advantage of the tips and tricks below.
Reduce your collector car insurance premium by increasing your deductible. Doing so can reduce how much you pay for classic car insurance.
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 in instalments.
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.
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.
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.
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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