5 things about Aviva’s collector car insurance that your customers should know

As the mild summer weather makes its way across Canada, collector car enthusiasts are no doubt enjoying time on the road with their pride and joy. 

Do they know what optional and inclusive features are available to them in the event of a claim? We spoke to Kim Johnston with Aviva claims, who specializes in collector cars, to help you educate your customers on some important highlights of their coverage. 

1. Cherished salvage endorsement can help retain memories 

“A lot of our collector car customers have a real emotional bond with their vehicles. In some cases, they consider them almost like a child,” said Johnston. 

That was the case for one Ontario customer who carefully covered his collector car and parked it in his driveway one winter’s night. However, when his neighbour’s basement flooded and they frantically pumped the water out into the yard, the collector car was also flooded with water – that quickly turned to 8 to 10 inches of ice.  The vehicle was frozen to the ground and was declared a total loss because the extensive damage to the rims and the undercarriage of the car made the cost of repairs higher than the owner’s insurance coverage. 

Typically, in this situation, the insurer would retain the remains of the car but this customer had the cherished salvage endorsement so he was able to keep the car at no cost and use the insurance money to work at fixing it over time.

“When a customer has the cherished salvage option, they can keep their vehicles and still receive the full insured value of the car. No salvage value is deducted from their final payment if they choose to keep it to restore it or use the parts for their next project,” said Johnston. 

She says this endorsement has become especially valuable given the rising costs and shortages associated with vehicles and their parts over the last couple of years. 

“When parts are harder to find or may not even be manufactured anymore, salvaged parts can go a long way to getting older cars repaired and back on the road – even after they’ve been declared a total loss,” she said. 

Even when it’s not possible to use the parts, having a vehicle’s remains can go a long way to remembering a once prized possession. “The customer who lost 40 cars built a ‘cemetery’ with some of the vehicle pieces and made lawn ornaments out of them. It helped him heal from the loss,” said Johnston. 

2. Features that offer more coverage and inflation protection

Hagerty®’s collector car coverage offers a number of great features that help provide additional coverage and inflation protection. They may vary by province but there’s something for everyone.

“Their unique endorsements provide additional values for things like car covers and valuable vehicle documentation or memorabilia. They even provide coverage for the entry cost of a collector car event if a vehicle has a mechanical breakdown and they can’t attend,” said Johnston. 

Another feature of some of the endorsements is an inflation protector, which provides up to 125% of the insured value of the car if an appraiser determines the value of the vehicle is more than what it’s insured for.

“We had a customer with a 1973 Ford pick-up truck that was determined to be a total loss after a collision with a third party. The customer had insured it for $13,500 but the appraiser determined that it was worth more due to inflation. We were able to pay $16,785 because the customer had the value added endorsement,” said Johnston. 

The full details of added value endorsements vary by province. It’s worthwhile checking what’s available in your region and sharing it with your collector car customers. 

3. Original equipment manufacturer (OEM) parts are part of our coverage

Johnston says collector car customers especially appreciate Hagerty®’s standard policy of using OEM parts for repairs – at no extra charge.

“Many other insurers cover only after-market parts for vehicle repairs. Part of our collector car policy is ensuring that, if there are OEM parts available, we will make sure our customers get those if the vehicle warrants it. And they don’t have to pay extra for it,” said Johnston. 

“True collectors don’t want something manufactured somewhere else and modified to fit their vehicle. They want the original parts, and we aim to provide that,” said Johnston.

4. Younger drivers can now operate collector cars in a few provinces

Aviva has recently lowered the age of young drivers who can operate collector car vehicles from 25 to 21. 

“As long as they are fully licensed and have their own vehicle with their own insurance, our collector car coverage is extended to younger drivers who are 21 and older,” said Johnston. 

This change was made to help collectors share their passion with their younger relatives and the next generation of enthusiasts. 

5. Seasonal commute endorsement is available in Ontario and Nova Scotia

Another new feature of our collector car coverage is an optional endorsement customers can buy to use their vehicle for five months of the year. 

“Traditionally, collector car coverage allows the vehicle to be driven only for special events or in car shows. This endorsement allows customers to use their collector car to commute to work, school or even to run errands for five months of the annual policy term,” said Johnston. 

The additional coverage is intended to be used in the five months of the year that afford the mildest weather and provides up to 12,000 km of use. 

This is the right season to touch base with your collector car customers and share the value of these add-ons and built-in features that can make a big difference if they need to make a claim.

If you have any questions, please contact your Broker Operations Specialist or your Broker Relationship Manager.