You may have a passion for your special car and have spent hours restoring and caring for it. It could be an older car that you don’t drive daily. These types of cars are hobby cars and are known as classic cars. It is important to have the proper insurance coverage for a classic car as regular car insurance may not be enough. A classic car has a special value attached to it in terms of money. This value does not depreciate over the years like other regular cars. In fact, the value of a classic car appreciates with time each year.
The users of classic cars do keep a budget within which they maintain, repair, or modify the hobby vehicle that they use just for ‘pleasure’ as a secondary vehicle. They become members of clubs, forums, and networks where similar car owners meet and share ideas about their usage and technical details to maintain their classic car easily.
What Qualifies As A Classic Car
That being said, all older cars do not qualify to be classic cars. The cost of insuring a classic car is very much less compared to the cost of insuring a regular car with a standard auto policy. There are certain insurance companies in Ontario that provide classic car insurance. In order to consider applying for classic car insurance, it is necessary to determine the qualifications and limitations of classic car insurance.
The basic qualifiers are as follows:
Age of Car: Classic cars are usually 15- 25 years or elder. The car may retain most of its original equipment and parts.
Stock or modified: The insurance companies who specialize in classic car insurance do mainly offer in 2 categories. The first category could be either for an antique, classic, or stock car. For the modified or special interest car category, the age of the car is between 15 to 24 years and is custom-built. The second category has more insurance premiums compared to the first and is based on the appraisal value.
Driver Qualification: It is necessary that the drivers of the classic car have at least 10 years of continuous driving experience in Ontario. They must have a clean record with not more than 2 minor convictions and be clear of at-fault collisions. It is mandatory to have another passenger vehicle intended for daily use registered under another car insurance policy. Most insurance companies may not allow another teen driver with a bad driving record on a classic car policy.
The purpose of Usage: The intent of usage for a classic car can only be for ‘pleasure’ and never as a daily driver. The classic car may be driven to parades or shows and to a garage for repairs. Certain classic car policies are more stringent while others may allow a leisurely drive on a nice day once in a while. Most insurance companies may insist on setting a mileage limitation for the classic car. They may also ask to provide proof of another primary vehicle that would be used daily.
Limitations: A classic car may not be driven to work, school, or for errands. So it cannot be driven as the primary vehicle daily. Most policies may have a restriction for annual mileage allowed and may not be driven outside certain jurisdictions unless for a car show. Even then a classic car may not be allowed to participate in off-road activities and racing in tracks etc.
Replacement Value: The main aspect of classic car insurance is that the insurer and the policyholder mutually agree upon an amount that is considered the appraised value of the classic car. This replacement value is determined with the help of a professional appraiser. In the event of a claim when the classic car gets totaled, the insurer pays this replacement value.
When after a few years there are modifications or restorations done, the appraisal is done again to get the new value. This is very important as the value of classic cars increases with time and the appraisal is done to reflect the true value updated with time.
How Old Does A Car Have To Be For Classic Car Insurance
It is generally considered common to brand an older car as a classic. Cars that are more than 25 years could be antique or classic cars. If the car is a replica, then it must have had expensive restoration work done to classify it as a classic car. Usually, cars built between 1900 and 1972 are considered classic. But, maybe not all cars were built in that era. This is due to the lower quality standards that resulted from mass production in the ’70s.
However, the 2 door sports cars, convertibles, and cars with big-block V8 engines and distinct body styles of the ’70s are considered collectibles. Certain cars with limited editions and are 15 years or older can also be classic cars. Another category is the exotic collection of classic cars. These are generally built in very small batches of 3000 or less each year and hence very detailed in technical aspects and unique designs.
Are Older Cars Less Expensive To Insure
It is less expensive to insure older cars compared to newer cars. However, if the older car has had extensive restorations then it could affect the agreed appraisal value. If the appraisal value is higher, then the classic car insurance premiums would increase too. So, it is important to insure the classic car for the closest estimate of appraisal as replacement value. In case the older car was imported and has costly spare parts, then its theft risk is more and insurance costs may also increase. Such a car must be insured with classic car insurance rather than a standard policy to get sufficient coverage in the event of a claim.
Is It Cheaper To Insure A Classic Car
Certain insurance companies have special programs to insure classic cars. These programs may have certain restrictions for these cars. It may include the limited use of the classic car and be driven only during particular months. Insurance companies consider some factors while calculating premiums for classic cars such as mentioned below:
Mileage – The classic cars are intended to be driven lesser than a regular car.
Storage – If you confine your classic car in a secure and safe manner when in storage then it could cut down some insurance costs.
Abstract –The driving record of the user of the classic car does matter while calculating the premiums. A clean claims-free record could reduce insurance rates.
Car Insurance For Classic Vs Regular
Generally, classic car insurances have more restrictions but are cheaper than regular car insurance. This is mostly due to the low mileage that is driven on the classic car. A major difference is that there is an agreed appraisal value for the classic car which is the replacement value in case of a claim. Regular car insurance policies do not have an agreed value and consider depreciation too. The replacement value for classic car insurance often appreciates with age.
In case you have modifications done to the classic car, this may also increase its value and the insurance policy will be updated as well. Regular car insurance has deductibles as applicable. But classic car insurance policies may have less or no deductibles with policy.
List of top 10 cheapest classic cars to insure in Ontario
1974–76 Dodge Dart Sport 360
This sedan has great speed. It has a V8 engine with 200 hp 5.9 L. The pricing varies from $5200 onwards.
1985–90 Chevrolet Camaro IROC-Z
This classic car is a sedan. It has a 5.0 L V8 engine with 215 hp. The versions that were built in 1986 and 1987 featured a 5.7 L V8 engine with 225 hp. The pricing ranges from $5500 onwards.
1971–75 Ford Maverick Grabber
This may not be viewed exactly as a muscle car. It has a V8 engine with 4.9 L and 140 hp. The average pricing ranges from $6275 onwards.
1993 Ford SVT Mustang Cobra
This model had the best engine power in its class in all Mustangs and had 17-inch wheels. The engine was a v8 with 5.0 L and 235 hp. The pricing ranged from $8450 upwards.
1994–96 Chevrolet Impala SS
This model featured an LT1 small-block V8 engine with 260 hp and was one of the biggest. The pricing ranged from $9350 upwards.
1986–87 Dodge Omni GLH-S
This car featured great turbo lag and is a front-wheel drive with 5 doors. The engine has a 2.2 L capacity with 175 hp. The pricing ranges from $9850 upwards.
1979 Pontiac Firebird Formula 400 WS6
This car featured ‘snowflake’ wheels made of alloy. The engine was V8 with 6.6 L and 220 hp. In 1979, there were just fewer than 25,000 models of these classics built. The average pricing ranges from $11,200 onwards.
1970–71 Ford Torino GT
These cars had better interiors with a V8 engine with a 5.8 L capacity and 250 hp. The pricing ranges from $11950 onwards.
1973 Pontiac GTO
This was a mid-size car with a 6.6 L V8 engine with 230 hp. There was also an option for a 7.5 L engine with 250 hp. The pricing ranged from $12,150 onwards.
Mercury Cyclone GT
These cars had a 7.0 L V8 engine with 360 hp. The pricing ranges from $12,350 upwards.