Classic Car Insurance: Do you Qualify and Should you Consider it?


Most car enthusiasts are often operating on a tight budget, especially when it comes to restoring and maintaining a `hobby` vehicle. As a result, they consider various informed approaches in a bid to enjoy owning their favorite cars, and without breaking the bank. A good example includes joining a car club on the internet to interact and share ideas with similar car enthusiasts all over the world. By using an informed approach, the classic car owner can be able to enjoy their ride, minus the hassles associated with the conventional forms of driving.

Perhaps one of the most notable aspects that that car hobbyist can save up on cash is through the classic car insurance. For those who are not aware, classic insurance is much more affordable than the conventional types of insurance.

There are qualifications and requirements for the classic insurance, which you need to consider before making an application. A good example to consider are the service insurance packages offered at While these insurance packages tend to vary, it’s important for any car hobbyist to make an informed decision when considering this type of risk management.

Even though the classic car insurance is suitable for older cars, it is a risk management plan that is often has various requirements. These requirements are somewhat different when compared to the stipulations found in the conventional insurance packages.

In most cases, the cars that fall under this category are usually not suited for everyday driving. As a result, their insurance packages are often customized to suit such types of low activity and also to provide a pocket-friendly option for clients.

Do I qualify?

Similar to purchasing any type of insurance cover, there are various qualifications aspects to consider for the best coverage packages. The standard regulation in Ontario is that all drivers must have accumulated a decade worth of driving experience within the country. This policy helps to ensure that only competent and experienced drivers can gain access to such privileges. Not to mention, the individual also has to possess a clean driving record, with only two minor convictions being the only exception to the rule. More so, the individual must also own another passenger automobile, which is insured under a different policy.

Factors to consider:

The expected use of the vehicle

It’s important to note that the hobby car can only be insured for leisure time or fun related activities. This means that you can only drive the car to local meetings, restaurants and your local repair shop, just to name a few. The limitations on the average driving distance range of these cars often vary, and in relation to the given insurance cover.


It is not acceptable to drive the classic insured automobile to your everyday locations such as school or perhaps to the office. Simply put, you can’t use the classic insured vehicle as your daily commuting machine. The insurance cover for such a car is very different because it is in most cases meant for occasional use. Moreover, some jurisdictions even have distance ranges, in which the vehicles can operate in Canada. Most notably, racing or off road activities with the vehicle are also not acceptable. Ever wondered why some cars on the racetrack, have their license plates taped or hidden? Well, it’s to ensure that the insurance company never comes across the given cars on the race track. Any evidence of the car on the race track may compromise the insurance coverage for the given car. It is considered as a breach of contract.

19A agreed on the value

Perhaps one of the central aspects and benefits of the classic car insurance policy is that the insurance company assigns the vehicle a specific replacement value. The replacement value is used to determine the proper payout in the likelihood of any loss. As a result, a professional appraisal is sometimes performed to determine the real value of the vehicle. The examination allows the insurance company to evaluate the company and to determine the proper market value of the car, at a particular point in time. In most cases, the insurance company provides a list of the top appraisal companies to consider. If any adjustments or changes are made to the vehicle, then an updated appraisal might have to be conducted to determine the most appropriate payout value. Note that, introducing major changes to the structure of the vehicle or any unusual stock parts, may compromise the classic insurance cover. The price of the appraisal is often dependent on various aspects such as your chosen insurance service, appraisal service, and state regulations.

Stock or modified

A significant portion of the insurance companies that sell classic insurance tend to have various categories for these cars. Some of these categories include the classic, modified, stock, just to name a few. It’s important to note that the term classic applies to any vehicle that surpasses the 25 year age mark. Also, the special interest applies to modified cars that average in between 15-24 years.
The premiums for classic vehicles tend to be lower than those of special interests. That said, each of these categories is often based on the appraisal value of the given. As a result, the value of the car is therefore directly correlated to the premium payout.

In Ontario, there are various companies that provide this type of insurance. A good example would a car owner that owns a 1984 325i German BMW and Chevy Chevrolet muscle car. These cars fall under the same category but might attract different premiums. The conventional annual premium insurance for both of these cars would be much higher as when compared to purchasing the classic insurance.

Taken together, there are various other benefits of investing in classic car insurance. It is a contingency plan that suits your car ownership needs. This is if any form of loss were to occur to the car. Besides that, the insurance is also often customized to suit the unique needs of the owner and the value of the car as well. Owning such an insurance cover gives the car owner the peace of mind to proceed with the necessary upgrades to the car.


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