Classic Car Insurance in Ontario

Published: August 31, 2015

Updated: May 15, 2018

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If you own or have purchased a classic car in Ontario, you will need to have different insurance coverage than you would with your daily driver. This is because the classic car market is different to the new car market and has some distinct differences for insurers to consider.

  • Old or antique cars are invested in more by owners, who typically restore them and spend extra money to maintain their aging vehicles.
  • Classic cars do not depreciate in the same way as daily drivers, and in many circumstances the insurance company will request an appraisal of your vehicle to determine the value. If the vehicle is then lost or stolen the insurer will pay-out for a previously stated amount equal to the value. On the contrary, daily drivers are offered ACV coverage instead, which factors the depreciation of the car when calculating the payout.

Agreed value coverage is designed to account for the increased value and lack of depreciation with classic cars, so if you bought a classic car appraised at $40,000 and wrote it off, you would receive a $40,000 pay-out. Policies typically offer roadside assistance coverage that includes flatbed towing facilities, with towing vehicles designed to deal with hauling classic cars safely.

However, while classic car insurance in Ontario is arguably more appealing than personal coverage in terms of its basic details, it is actually specifically tailored and has major caveats. For example, insurers offer classic car coverage that comes with limited pleasure use, which means you are actually limited to how much you use the car. Insurance companies demand that all members of a household with a driving license will have to have a policy in their name for a daily driver. There are also some fairly strict driver requirements in place for Ontario based classic car owners, such as a lack of serious convictions and 10 years of continuous licensing in the province.

The limited use section of classic car insurance coverage also stipulates that your classic or antique car can only be used for pleasure. This means limited driving (leisure driving) or for parades and exhibitions. It is also a requirement for the owner to demonstrate that they restore and maintain the vehicle, while a private storage solution is a must, such as a storage unit or garage.

Classic car classification in Ontario is different to other territories and countries. The province says that a vehicle is classic when it is at least 10 years old, while if it’s older than 25 years it is considered an antique. Replica vehicles are those that are under the age of 25 years old and modelled as reproductions of classic or antique cars.

Yes, there are a lot of requirements and stipulations when seeking classic car insurance in Ontario, but the fact remains that it is essential coverage if you own an eligible vehicle. Personal car insurance will leave you uncovered in some circumstances and will likely give less of a pay-out in the event of damage or loss.