If you live in Canada and are the owner of a classic car, you might wonder what kind of automobile insurance you need. Since there are mandatory insurance laws that cover the entire country, you might be curious as to whether or not these laws apply to you and your classic vehicle.
What is the Definition of a Classic Car?
Before you know what kind of insurance you need to have, the first thing you need to know is whether or not your vehicle is considered a classic car. Simply owning an older vehicle that you use to tool around town in does not automatically mean it is a classic car. Some of the criteria that makes a car classic are:
- Automobiles that are 25 years old or older, that are not used for transportation on a daily basis. These cars are typically restored and are used in car shows, and driven only minimal amounts.
- Vehicles that are between 15-24 years old but that are in restored or original condition and used to show only. Again, these are not cars that are used for a family vehicle as a way to get around.
- Street-Rod or Modified vehicles. These cars are newer vehicles that have been enhanced to be raced or shown in specific categories. While not technically “classic,” these types of vehicles are not driven on a regular basis and have different insurance requirements than most cars.
What Kind of Insurance Do I Need?
If you are the owner of one of the above mentioned vehicles, or have a car that could possibly fall into one of those categories, you should talk to an insurance professional in order to make sure you are getting the right coverage. For example, a classic car can be insured on an Actual Cash Value (ACV)basis, or on an Agreed Value (AV). With an ACV vehicle, your insurance company will pay out only what the Actual Cash Value of the car is, which takes into account depreciation. An Agreed Value, on the other hand, will be covered for an amount agreed upon by you and your insurer. While these types of policies typically require you to get an appraisal, they are usually a much better policy.
Depending on how far and how often you drive your classic vehicle, as well as where in Canada you reside, the amount of insurance can be different than that on a car used for regular transportation. Your insurance professional can help you decide which coverage is the best for you, and then guide you to choosing a policy that will fulfill all of the legal requirements as well as protect you if your vehicle is damaged.
Where Do I Find Classic Car Insurance?
Since insuring a classic car is not the same as insuring most other automobiles in Canada, you will need to talk to insurance agencies that offer specialty insurance. You can find these types of agencies online or even in the local telephone book. The only way to make sure you are getting the best insurance policy for the money is to shop around to find the best rates before actually purchasing a policy. You should talk to and get quotes from at least five different companies before making your final purchase.
When shopping for Canadian insurance for your classic car, keep in mind that you have probably invested considerable time, effort, and money into your car. Make sure that you have the correct type and amount of insurance to cover your investment in order to be protected.