Automotive

insurance company state car older than 12 years can not buy insurance

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  • Jan 30th, 2012 11:51 am
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[OP]
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Apr 16, 2011
468 posts
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insurance company state car older than 12 years can not buy insurance

anyone heard of this new rules???

insurance company state car older than 12 years can not buy insurance.

??anyone
15 replies
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Aug 18, 2010
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Edmonton
Quiying wrote:
Jan 28th, 2012 7:09 pm
anyone heard of this new rules???

insurance company state car older than 12 years can not buy insurance.

??anyone

Each insurance company can set their own rules on who/what they want to insure. Try a different company
Deal Addict
Feb 28, 2006
3296 posts
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Toronto
i've never heard of this. just try a different company like trav said.
Ask me anything about Auto, Home, Business, Commercial or Life Insurance. Or anything about annuities/segregated funds! :D
[OP]
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Apr 16, 2011
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Sprite_TM wrote:
Jan 28th, 2012 8:27 pm
i've never heard of this. just try a different company like trav said.

this is a spare car in our family , i was trying to renew my insurance policy just for few months but the broker told me "insurance company i spoken to " states cars over 12 years old can be rejected selling insurance to me.

lol insurance company don't want my money
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Jan 7, 2009
568 posts
I call b/s ... I have an 1984 on my policy and also until last November I had an 1980 as my primary driver .
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Aug 18, 2010
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Edmonton
I up until recently insured a 22 year old car. (1989)

Your company is either too strict, or they were lying to you. If they are this difficult now, imagine if you have to make a claim with them. I would look elsewhere for insurance
Deal Addict
Oct 3, 2011
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OTTAWA
I have 2 cars. My insurance broker offers to renew the insurance of my 2 cars which will take effect on February 16, 2012. One of the cars is a 1992 Toyota Camry (20 YEARS OLD). I suggest OP to shop around to find a new broker.
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Aug 11, 2008
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Burlington
alot of companies will not insure physical damage on a vehicle that is older than 10 yrs old...some also will not insure a vehicle at all unless you provide a safety and photos of it.... if your company refuses entirely, ask them what the filed rule is for the denial of coverage entirely....
RIBO LICENCED INSURANCE BROKER(ontario) -OVER 30 YRS OF EXPERIENCE
YOUR BEST INSURANCE IS AN INSURANCE BROKER
All the information provided is for reference purposes only. The actual wordings, conditions and exclusions of your policy will apply.
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Nov 15, 2009
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This is one example of why I'm happy we have public insurance in BC :p
Deal Addict
Feb 26, 2008
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My guess is that you may have misunderstood what the insurance agent was saying. It's likely that you cannot obtain collision insurance for cars that are 12 years old or older. However, 3rd party liability is probably not a problem to obtain.

Personally, if it's just collision or upset that you cannot insure, I wouldn't worry about it. For most 12 year old cars, you're really not insuring anything. A 12 year old car is typically only worth $2,000 so if you have a $1,000 deductible then your maximum net indemnity from collision is only $1,000. While I do not know anything about your personal financial situation, my opinion is that if you need to insure a $2,000 car against collision, you really are too poor to be a car owner. Anyone else would just establish a modestly funded emergency fund to repair or replace such an old car.

Personally, I took collision insurance off my car when it hit 9 years of age. It was costing me about $400 for collision premiums with a $1,000 deductible to insure a car that red-booked at $4,500. Effectively they wanted to charge me $400 annually for a maximum net indemnity of $3,500? No thanks... At that price, I'll self insure against at-fault collisions or upset.
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Aug 11, 2008
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having physical damage coverage on a vehicle 9+ yrs old does not mean you are poor even if the value is only $2000. I have alot of clients that have this on theirs, not to mention I also have 1 vehicle over 10yrs old with full coverage on it. Maybe some ppl that have older vehicles take care of them and not to mention collision coverage will also protect you in the event of a hit and run...some have only a $500 deductible... oh, and my 10 yr old vehicle is worth more than $2000.... :)

kneevase wrote:
Jan 29th, 2012 5:22 pm
My guess is that you may have misunderstood what the insurance agent was saying. It's likely that you cannot obtain collision insurance for cars that are 12 years old or older. However, 3rd party liability is probably not a problem to obtain.

Personally, if it's just collision or upset that you cannot insure, I wouldn't worry about it. For most 12 year old cars, you're really not insuring anything. A 12 year old car is typically only worth $2,000 so if you have a $1,000 deductible then your maximum net indemnity from collision is only $1,000. While I do not know anything about your personal financial situation, my opinion is that if you need to insure a $2,000 car against collision, you really are too poor to be a car owner. Anyone else would just establish a modestly funded emergency fund to repair or replace such an old car.

Personally, I took collision insurance off my car when it hit 9 years of age. It was costing me about $400 for collision premiums with a $1,000 deductible to insure a car that red-booked at $4,500. Effectively they wanted to charge me $400 annually for a maximum net indemnity of $3,500? No thanks... At that price, I'll self insure against at-fault collisions or upset.
RIBO LICENCED INSURANCE BROKER(ontario) -OVER 30 YRS OF EXPERIENCE
YOUR BEST INSURANCE IS AN INSURANCE BROKER
All the information provided is for reference purposes only. The actual wordings, conditions and exclusions of your policy will apply.
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Feb 26, 2008
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COSMIC5 wrote:
Jan 29th, 2012 5:55 pm
having physical damage coverage on a vehicle 9+ yrs old does not mean you are poor even if the value is only $2000. I have alot of clients that have this on theirs, not to mention I also have 1 vehicle over 10yrs old with full coverage on it. Maybe some ppl that have older vehicles take care of them and not to mention collision coverage will also protect you in the event of a hit and run...some have only a $500 deductible... oh, and my 10 yr old vehicle is worth more than $2000.... :)


Fair enough. The point, however, is to understand what it is that you are insuring. If you are insuring a $2,000 car with a $1,000 deductible, you can only possibly get a net indemnity of $1,000. Given that running a car tends to cost anywhere from $4,000+ annually, a net indemnity of $1,000 is bugger-all. If you can afford the $4k+ per year, you surely should be able to afford to self insure a 12 year old car....and if you can't afford that, then can you really afford to run a car? It could just as easily be a $2,000 transmission repair or motor rebuild that would put you in the poor house rather than the $2,000 collision!

But you do bring up a good point. It's possible to have a very valuable 12 year old car. If it's a Benz or a large SUV, it could very well be worth $8k or $12k. But those are the exceptions. Most 12 year old cars are crappy old Civics, Tercels, Focuses, Camries or other mundane vehicles. They are usually worth dirt, and do not generally merit collision coverage.
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Quiying wrote:
Jan 28th, 2012 8:31 pm
this is a spare car in our family , i was trying to renew my insurance policy just for few months but the broker told me "insurance company i spoken to " states cars over 12 years old can be rejected selling insurance to me.

lol insurance company don't want my money

Saying it CAN be, and that you cannot buy insurance are two totally different things.
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TD Meloche Monnex required that I take my 1992 car to an Alberta Safety inspection yearly.

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