Is Car Insurance Cheaper or Expensive for Old Cars in Ontario?

  • old car

Not everyone in Canada drives a newer model car. In fact, there are many that still rely on their older cars. It doesn’t matter what type of vehicle one is driving on Canadian roads. They have to have at least the basic insurance coverage. Then beyond this they have the choice of whether they want to add extra coverage to this.

Extra Insurance

Extra

When one is taking extra insurance there are factors that they have to take in mind. They are most likely going to want extra coverage for liability. When it comes to the replacement of their vehicle they may not want to invest in extra insurance for this. This is going to be a matter of personal preference. But one should understand what the insurance process is. For paying out for claims when it comes to repairs and replacement of vehicles. This will help them to determine whether the extra cost of the premiums is going to be of any advantage to them.

When an insurance company is paying out a replacement cost for a vehicle they have standards. Ones that they follow to determine how much they are going to pay. They are going to look at the value of the car. If it is an older car, then there is a chance there is not going to be much value for its replacement.

Beyond the old car, there are vehicles that end up in the classic car category. This will vary according to the provinces classifications.

What is Considered a Classic Car in Ontario?

The classifications of antique and classic cars are usually determined by organizations. Ones that specialize in this industry. For example, there is the Antique and Classic Car Club of Canada. Although there may be variations for an antique car it is usually considered to be at least 30 years old. Then this gets broken down into subcategories for those that are between 30 and 20 years old. Then another classification is a collector car. These categories do come in to the main category of being an older car. It is going to be how the insurance company perceives it. If it’s falling into a classic car category the insurance costs are going to be different. Also, there are the restrictions.

Classic Car Requirements

Classic Car

There is one major difference when it comes to the older cars. Ones that are falling into the classic car category. It is that instead of depreciating they go up in value. This means that insurance companies have to view their coverage in a different way. With a standard older car the companies would use an actual cash value metric. For setting the policy with a classic car the metric would be on an agreed value coverage. To come to some sort of an agreement about what the car is worth the insurance company will ask for an appraisal. If the insurance company has to pay out a claim then it is going to be for the value that gets agreed upon. That which gets based on the appraised value.

Classic Versus Antique

There will be a distinction between the classic category and the antique category. For the classic, it has to be at the very minimum 10 years old. If it is older than 25, then it will fall in to the antique category.

Restrictions

For the older car that has come into the classic category, it will have restrictions. Ones placed upon it for its use by the insurance companies. These cars are no longer considered for use as average vehicles. Meaning that it will get limited to pleasure use and even limitations will get placed on this. In most cases, these types of cars are only driven when they are going to appear in shows and demonstrations. The insurance company may put this restriction on the car. It will only get insured for this purpose.

Another restriction that can get put on these types of vehicles is specific metrics. Ones that are applicable to the driver. For example, in Ontario, the usual restrictions are the driver has to have at least 10 years of driving experience. Added to this they cannot have any type of serious convictions. Ones appearing on their driver’s history.

Classic Car Insurance Ontario Under 25

When one is looking for a classic car insurance in Ontario under 25, this can be applicable to the year of the vehicle itself. Or the year of the driver. Drivers under 25 that own classic vehicles find that it is difficult to get insurance. What has to be kept in mind is that the classic car category has strict restrictions on it. For how the car gets used. So this is going to get taken into account by the insurance providers.

Some insurance companies in Ontario vary. In the type of classic and old car insurance that they offer. Some will give a type of policy that has fewer restrictions. Such as allowing for the vehicle to get driven for light leisure activities.

Shopping for Old Car Insurance

Old Car

Individuals that are fitting in to this category of insurance need to take the time to shop around. Because insurance companies vary so much in what they offer. Those with older cars want to take advantage of the best premiums. But, they also want the best coverage that is going to meet their specific needs. There may be some that want to drive their car for pleasure on occasion. They’re going to want insurance companies that are going to allow this.

The easiest way to shop for insurance including old car insurance is by getting insurance quotes. It’s a matter of answering a specific set of questions so the quotes can be obtained. Once these quotes get produced, then the insurance shopper has options. Of being able to research each one of them on an individual basis. By doing this, they can get down to more specifics. About what type of coverage they want and what their expectations are. They can determine what the insurance company is willing to offer.

Resources:

https://www.wheels.ca/guides/classic-car-insurance-101-do-you-qualify-is-it-right-for-you/
http://ontariorodders.activeboard.com/t50415338/is-it-possible-to-insure-a-classic-if-your-under-20/
https://www.mcdougallinsurance.com/auto-car-insurance/classic-car-insurance