Choosing low deductible does not really save you money
Simply stated your car insurance deductible is the money you pay out-of-pocket when you file a claim. Thus, if you have a $1,000 deductible that's what you'll pay regardless of whether your vehicle damages are worth $2,000 or $7,000; and your insurance company will chip in the rest.

There are two types of deductibles. Whenever your vehicle is involved in a collision and you were at-fault (partially or fully) you will pay the collision deductible. When your vehicle is vandalized, stolen or catches on fire you will use your comprehensive coverage and pay a comprehensive deductible.

You choose your car insurance deductible when you set up your automobile insurance policy. Your choices range from $500 – $1,000 when you get an online quote, or $300, $500, $1,000 or $2,500 with an insurance broker.

To get the lowest car insurance in Ontario it's best to choose a high deductible – provided you're a good driver and can afford the higher out-of-pocket expense; and a lower deductible if you can't afford to pay a large sum of money. This makes sense right? Just hold on a minute though.

Taking too much insurance is not always a good decision

If your car is old, you don't need comprehensive collision insurance. As soon as you drive off the lot your car depreciates; and every year it continues to lose value. Thus, getting full coverage isn't feasible. You should focus on getting the minimum of what's required by law and accident benefits.

The cost of insurance premiums is much higher for a vehicle that's a couple of years old as opposed to a 10-year old car. But, you have to be careful that your car isn't old enough to be considered a classical car, because the insurance rates are significantly higher.

If you're car is an older model and not worth anything, consider the advantages of only getting liability (required by law) and lowering your collision damage insurance. In this instance you'll have to pay the entire amount to have the damages repaired, but you'll save a lot of money on premiums.

Old car coverage can go UP! – Classic car insurance rates in Ontario

Did you know that car insurance companies don't share a universal definition of what a classic car is? For example State Farm defines a classic automobile as “a motor vehicle 10 or more years old, which is rare or of special historical interest because of exceptionally, fine workmanship or limited production.” Additionally, the company considers an antique vehicle a classic motor vehicle that's 25-years and older.

When insuring a classic car, be sure to clarify actual versus agreed value. Your classic car's valuation is the basis of your policy. Thus, you must establish whether the insurance company will cover the actual or market value of your automobile if it's involved in a major collision or is a write-off.

The market value of your classic car may not reflect its true value; but, if you use a licensed appraiser or other expert, you can come to terms with the insurer about an agreed value.

Another potential issue is the depreciation or appreciation of your classic car. Automobile insurance firms are very familiar with the concept of depreciation; but they may not be as familiar with how classic cars appreciate in value. To cover your bases, make sure your policy reflects this or your fair market value might be too low.

Just as important are replacement parts. As you're probably aware, most classic car owners are insistent that replacement parts be authentic. Make sure this is established in your policy, that the cost to replace damaged parts reflects the actual value of its original parts.

Other aspects related to classic car insurance include:

  • Insurance companies usually insist that classic cars are stored in a secured facility such as a garage.
  • Most will deny coverage if you don't have car insurance on the vehicle you drive regularly.
  • Some insurance companies expect you to have a minimum 10-year driving history.

Discounts: When you discuss your insurance policy with an insurance broker, be sure to let them know if you have an impeccable driving record. Also, don't be shy about letting them know you're claim free, and don't forget to tell them about any extra security or safety features added to your car. This will help you get discounts the insurance company offers.

There are serious potential issues to think about before getting classic car insurance. Find an insurance company highly experienced with classic cars. To make this easier, use online research tools, like InsurEye.

Author's Bio: 

I'm a passionate writer, who is deeply involved with financial and medical topics.