What is Classic Car Insurance

Glossary - Letter - C

Classic Car: Definition

Classic car is not defined in the same way across all insurers. For example, State Farm Canada considers a classic automobile, “a motor vehicle ten or more years old, which is rare or of special historical interest because of exceptionally fine workmanship or limited production“. Furthermore, it defines a classic motor vehicle 25 years old, or older, as an antique.

Lant Insurance Brokers, a subsidiary of Aviva Canada, categorizes classic and antique cars together, using the following description: “at least 25 years of age including commercial weight collectible automobiles such as, retired military trucks, retired semi/dump/tow/trucks, and retired farm tractors.

If you think that your car may fall under the definition of a classic car, make sure to clarify it with your insurance broker or insurance company.

What is Classic Car Insurance: Things to Know

Classic cars require a very different auto insurance, which is called classic car insurance. Most policies require that your classic car be used on a very limited basis, such as for exhibitions, car shows, or car club activities, as opposed to a daily driving vehicle. Some packages, however, do allow you to drive five or six thousand kilometers yearly, whereas other policies don’t allow you to use the car for daily driving whatsoever.

The second thing to consider is what is meant by ‘actual’ versus ‘agreed’ value. The valuation of your classic car is at the heart of your policy and thus you have to establish if the insurance company will pay the actual value, or just the market value, in the event of a major accident or write-off. The market value may not reflect the true value of your car.

Another thing to consider in the appraisal process is vehicle depreciation or appreciation. Insurance companies know the depreciation concept quite well, but may not be familiar with classic cars appreciating in value as time goes by. Make sure this is reflected in your policy or you may not get the fair payout you deserve. Equally as important is to arrive at a replacement parts policy. Since many classic car owners are painstakingly adamant about having authentic parts on their cars, you have to establish that should the need arise, the cost of replacing damaged parts is reflective of the actual value.

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