The Ultimate Guide to Collector Car Insurance in Canada
By Daniel Schoester | Published on 01 May 2023
Insurance companies generally classify collector cars as 15-20-year-old vehicles. Older vehicles can be classified as classic or antiques. These vehicles are often pristine and used for special occasions or events. As such, they require a different type of insurance coverage that considers their limited use and high value. You can usually expect to pay $250 to $1,500 per year.
Insurance companies design collector car insurance to cover vehicles used for exhibitions, parades, or car shows rather than everyday driving. Given the restrictions, you’ll generally have a lower monthly payment than traditional car insurance. However, some insurance companies may prevent daily driving and require specialized storage.
Overall, collector car insurance is similar to standard vehicles. There will still be basic coverages, such as third-party liability and accident benefits. Our ultimate guide to collector car insurance in Canada will provide you with all the information you need about this specialized coverage.
Collector Car Insurance Explained
Collector car drivers use their cars differently than everyday vehicles. Owners generally drive to several collector car meetups or occasionally cruise around town. Since the vehicle is older, owners generally drive less to preserve its value. Given this unique ownership behaviour, treating collector car insurance like regular vehicles doesn’t make sense. The risk profile is different.
Collector car insurance is different from regular car insurance in various ways. Mainly, the monthly cost is lower, but you can’t drive the car as frequently. Some insurance companies may only let you drive the car to meets and an occasional cruise. Using your vehicle for daily activities such as groceries could void the coverage if an accident happens. Other companies may require you to store your car when not in use securely. However, not all insurance providers are the same, so shopping around is essential.
Moreover, collector car insurance policies sometimes cover spare parts, accessories, and even memorabilia associated with the car. Occasionally, you can opt for roadside assistance which covers the cost of towing if your car breaks down.
It is important to note that not all vintage or collectible cars are eligible for collector car insurance. Insurance providers may have specific requirements for the vehicle’s age, condition, and rarity to qualify for this type of coverage. The following section goes into more detail about the particular needs to get coverage.
Collector Car Insurance Requirements
Collector car insurance policies have unique requirements, so it’s essential to understand what they are and ensure you meet them. Specifically, the car must generally be at least 15-20 years old. There are two categories of requirements to know; personal and vehicle.
a) Personal Requirements
Primarily, you’ll have to meet personal requirements. Most insurance companies require at least ten years of continuous driving experience. In addition, you’ll need to have a clear driving record with no severe offences. You’ll likely need to provide documents such as a vehicle history report or proof of title for approval.
b) Vehicle Requirements
Insurance companies must recognize the vehicle as a collector car. This generally means it’s at least 15-20 years old and has limited kilometres. You also can’t typically use the car for day-to-day purposes.
Some policies may also require storing your car in a secure location when not in use to be eligible for coverage. This can include a garage or a special storage facility. The goal is to protect the car from theft and damage.
The Difference Between Classic and Collector Car Insurance
| Car Category | Age Range |
|---|---|
| Collector Car | 15-20 years old |
| Classic Car | 20-30 years old |
| Antique Car | 30+ years old |
Classic car insurance usually applies to vehicles 20-30 years old, while collector car insurance can cover anything 15-20 years old. Classic cars may require more restrictions regarding usage, such as the number of kilometres you can drive per year or a requirement to store the vehicle in a specific location.
The usage restrictions of collector cars are generally less strict than those of classic cars. Additionally, collector car insurance may offer additional features not found in classic car insurance, such as roadside assistance and parts replacement. Finally, if you own a genuine antique vehicle (over 30 years old), you will likely have the most restrictions.
The 3 Types of Coverage Limits
Coverage limits refer to the maximum amount your insurer will pay in case of a claim. Lower coverage limits reduce your monthly payments but also increase your financial risk. For example, suppose you damage your car in an accident. Your coverage limit is the maximum amount you’ll receive.
Insurance companies use three types of methods to determine your coverage limit. This is due to specific nuances such as cars appreciating over time. Ensure to ask your insurance provider what way they use it. The remainder of this section will discuss the three options.
1. Agreed Value Coverage
Agreed Value Coverage is a policy that pays out the full agreed-upon value of your vehicle in case of a claim. You’ll agree upon a fixed value with your insurance company. Collectors prefer this option if they believe their car is more valuable than the stated value or market rate.
2. Stated Value Coverage
Stated Value Coverage is a policy that pays out the amount you stated your vehicle was worth when you purchased your policy. It’s a fixed value that won’t change over time. This coverage limit is ideal for car collectors who want to protect their vehicle’s value but do not want to pay for Agreed Value Coverage.
3. Actual Cash Value Coverage
This type of policy pays out according to the vehicle’s current market value at the time of the claim. You can think of it as a floating value that changes over time. Classic car collectors commonly use this coverage limit if their vehicle appreciates over time.
Six Factors to Consider When Choosing Collector Car Insurance
Many collectors focus on their monthly payments without understanding other essential components of their plan. For example, the cheapest policies may restrict the kilometres you can drive your car yearly or require storing the vehicle in a specific location.
Choosing the right collector car insurance policy balances your lifestyle, coverage and affordable premiums. Make sure to shop around and receive quotes from different car insurance providers. Ultimately, compare the quotes based on the factors below.
1. Types of Coverage
The type of car insurance you have specify the events that are covered. For instance, without comprehensive coverage, your insurance won’t reimburse you for damages caused by a falling branch. This section will walk you through the common types of policies to help you understand if you should include them in your coverage.
Third-Party Liability Insurance:
Classic car insurance with third-party liability protects you financially in case you cause harm to someone or damage their property. The minimum coverage in most provinces is $200,000, while the standard coverage ranges between $1-5 million.
Accident Benefits
If you get injured in a collision with another vehicle, your car insurance policy’s accident benefits coverage can cover medical expenses beyond your provincial health insurance. It covers expenditures like physiotherapy, dental work, at-home care, and loss of income if you cannot work. In more severe cases, it will cover funeral expenses.
Uninsured Motorist
Uninsured motorist coverage protects you if you’re involved in an accident with a driver without car insurance. Another common use is a hit-and-run incident. In both cases, the at-fault driver has no insurance to compensate your damages. This is where uninsured motorist coverage will protect you. It may also pay for any lost wages depending on your policy limits.
Collision Insurance (optional)
Collision coverage will protect the costs of repairing your vehicle from a collision when you’re at fault. However, it’s important to note that collision coverage is not mandatory. Consider whether collision coverage is worth the cost if you have an older car worth less.
Comprehensive Insurance (optional)
Comprehensive coverage protects damages caused by incidents other than a collision. This can include events such as theft, vandalism, or storms. This option is the most expensive since it has the most coverage.
2. Coverage Limits
Now that you understand how to use different policies to protect against various events, understanding the maximum coverage you’ll have is worthwhile. As stated previously, there are three types of coverage limits. This section will review the three because the above mention them in more detail.
- Agreed Value Coverage: It pays out a pre-determined amount you and your insurer decided upon.
- Stated Value Coverage: Your insurance company will assign a fixed value to your car when you purchase the policy.
- Actual Cash Value Coverage: This type of policy pays out according to the vehicle’s current market value at the time of the claim.
3. Deductible
Deductibles are the amount you must pay out-of-pocket before your insurance company pays for damages or losses. Generally, higher deductibles lead to lower monthly payments. This is because you’re taking more financial risk. Always ensure you have sufficient funds for the deductible in case of a claim.
4. Usage Restrictions
Depending on your policy, you may be restricted in how or where you can use the vehicle. For example, some policies may limit your car’s use to auto shows, club meetings and occasional leisure trips. Thus you would only be allowed to drive your vehicle occasionally or to get groceries.
5. Storage Requirements
Sometimes chasing a lower monthly insurance payment can increase mandatory storage costs. Insurance companies occasionally want to ensure the car is stored in a secure facility when not in use. This may require paying for an indoor storage unit or parking your vehicle at a specific location. Generally, older cars, such as classic or antique require specific storage.
6. Additional Features
Aside from the factors mentioned above, there are some additional features you may want to consider. They’ll help sweeten the deal with your insurance. Initially, many collector car owners opt for roadside assistance. Since the car is older, there’s a higher chance of a breakdown. This feature can include towing, fuel delivery, and battery replacement.
Next, what’s the point of paying for insurance if they’re slow to help or incompetent? Select a reliable insurance provider that provides excellent customer service. Many classic car owners prefer using a specialized insurer who understands their needs.
Finally, another feature you should consider is parts replacement. This coverage pays for parts to repair your classic car after an accident or other incident. This could be valuable coverage because collector car parts can be rare and expensive.
How to Find the Best Collector Car Insurance Policy
One of the best ways to find the right collector car insurance policy is to seek recommendations from other collectors or members of car clubs in your area. Clubs like the Vintage Car Club of Canada (VCCC) have chapters nationwide. Members may have experience with certain insurers and can often provide valuable insights and advice.
When comparing policies, be sure to inquire about any discounts that may be available. Many insurers offer discounts for things like low mileage, storage in a secure location, and membership in a car club. These discounts can add up and help you save money on your policy.
Finally, be sure to read the fine print and understand the terms and conditions of your policy. Make sure you know what is covered and what is not, and be aware of any deductibles or exclusions that may apply.
How to File a Claim with Collector Car Insurance in Canada
The process for filing a claim with a collector car insurance policy may vary depending on the insurer. In general, you will need to follow the steps shown below. You must carefully review the steps because an improper claim could void your coverage.
- After the incident, you must contact your insurance company to report what happened immediately. Do not accept fault, which could impact your ability to file a claim.
- Take pictures of the damage and gather witness statements, if available. Photographing the accident scene may also be helpful, including any skid marks or debris.
- If the accident involved the police, obtain a copy of the police report.
- State the claim process by providing the necessary information. Provide the date, time, and location of the incident, as well as any witnesses names and contact information. Make sure to give an accurate description of the damage to your vehicle.
- Lastly, your insurance company may ask you for documentation such as repair bills and medical expenses related to the incident. Make sure you have all these documents ready to provide when necessary.
Most insurers require you to pay a deductible before making claim payments. In addition, your claim may be denied by the insurer if they suspect that it is fraudulent. To ensure that you know what is covered, read and understand their policy before submitting a claim for car insurance.
