Manitoba’s government plans to introduce a new license plate and insurance rating group for collector vehicles next year, a program about which brokers say they are “light on information.”
The program for classic cars is expected to be launched on Mar. 1, 2014.
The new insurance program is still in development, and so brokers in the province say they know nothing about it. They say the government insurer has not yet sent a memo out to brokers detailing the program, which will be finalized and sent to the province’s Public Utilities Board (PUB) for review and approval.
Brokers are generally upbeat about the prospect of a new insurance product for classic cars. “It’s a positive thing for the hobby,” said Ken King of King Insurance Brokers.
“If the Manitoba government and insurer are going to recognize the hobby in this way, if they are going to create a new class for vehicles that aren’t driven very frequently…and save consumers some premium dollars, that’s a positive thing.”
Some are curious whether the government’s new policy will include a ‘stated value endorsement,’ the cause of some confusion about the final insurance payout for a totaled classic car.
For example, classic car insurance policies have a variety of ways to determine the final value of a classic car. They include:
• The ‘actual cash value’ of a car at the time of loss, which would include depreciation.
• The ‘agreed value’ of the car, established by agreement between the insurance company and the policyholder.
• The ‘stated amount’ coverage, which limits the amount of coverage to the amount listed in the policy schedule, or the actual cash value of the car, whichever is less.
Brokers often look to have an ‘agreed value’ in the policy to ensure their clients receive full compensation for their damaged vintage cars. The ‘stated value’ approach could lead an insurer to pay less than the stated amount in the schedule if the insurance company finds that the actual cash value is less than the stated amount.
It is unknown if the stated amount endorsement would be part of the government’s new product.
As the program currently stands, qualifying cars would be 25 years or older, valued at $5,000 or more, according to an MPI spokesperson. The proposed new, yellow-and-black license plate is intended to be a throwback to vintage plates in the 1950s and 1960s.
Similar to the way the government insurer handles motorcycle and snowmobile coverage, the new insurance product for classic cars would extend for 12 months. Policyholders would receive collision coverage for the entire year, and they would pay premiums only during seasonal driving months (yet to be ironed out).
Currently, classic car owners in the province typically pay for the public insurer’s basic Autopac coverage for seasonal driving months. During the wintertime, they drop the basic Autopac policy and purchase what’s called a “layup policy,” which does not have a provision for collision insurance. The less comprehensive layup policy covers fire and theft only.
“The Collector Vehicle Program premium will reflect the infrequent use on roadways,” said Marilyn McLaren, president and CEO of Manitoba Public Insurance. “This new insurance option will provide comprehensive, year-round protection.”
