Insuring a Classic Car

Published: March 18, 2015

Updated: May 15, 2018



Insuring a classic car in Ontario is a lot different than insuring your average daily driver. Antique car collectors put a lot of money and time into restoring and maintaining their cars, and these vehicles often don’t depreciate in the same way daily drivers do; on the contrary, they often appreciate.

As a result, Ontario car insurance companies write these policies with agreed value coverage instead of actual cash value (ACV): this means the insurer will usually have the vehicle appraised, and in the event of a total loss or theft, the insurer will payout the agreed-upon amount. Daily drivers generally have ACV coverage, which factors in depreciation: if your 2005 daily driver is totalled, the insurer will include depreciation as a factor in the payout.

For example, if you’re driving a classic car that’s been valued at $50,000, and the car is totalled, the you’ll receive a payout for $50,000. If you paid $20,000 for a new car in 2010 and you total it in 2015, the insurance company will compensate you for a five-year-old vehicle: generally, a lot less than what you paid for it new.

Furthermore, these classic car insurance policies are for very limited pleasure use, and often have stringent driver requirements, such as 10 years of continuous licensing in Ontario and no serious convictions. All licensed members of the household must have a daily driver with regular-use insurance in their names as reassurance for the insurance company that no one is using the classic car regularly.

For the vehicle to qualify as a “classic” it has to be at least ten years old—if it’s older than 25 years, it qualifies as an antique. To classify as a replica, the car has to be less than 25 years old and be a reproduction of a classic or antique car.

Classic car policies stipulate that the car can be driven only for pleasure: things like exhibitions and parades, and the occasional trip to the ice cream parlour. You also need to have restored or maintained the vehicle for it to classify for this type of coverage. It must be stored in a private residential garage, barn, or rental storage unit.

Classic car insurance policies also usually offer a roadside assistance program that uses flatbed towing specifically designed for towing a classic car. Considering that these cars are often more than 20 years old, things can go wrong, and you want the right roadside assistance when the time comes.

Despite the numerous requirements, classic car insurance is a must if you have a classic car. Regular ACV coverage could leave you with far less than your classic car is worth in the event of an accident. Shop Insurance Canada works with Hagerty Insurance Agency, the leading Canadian provider of classic and collector car insurance. They provide specialty insurance for more classic cars than any other company in the world. Fill out our instant quote form or contact us today to get a Hagerty quote for your classic car.