Some insurers may refuse to cover older used vehicle

Eric Lai

SPECIAL TO THE STAR

Q: I’m trying to sell my 1990 Jeep, but the buyer backed out because his insurance company won’t underwrite newly-acquired vehicles over 20-years old.

The buyer says the only company he found that would accept the auto wanted a whopping $3800 annual premium, so it would seem he’s being lumped in with drunk drivers in terms of risk even though he has clean driving record.

My question is: Are all sellers/buyers of vehicles 20 model-years or older now unable to get reasonably-priced insurance on these autos, or is this restriction limited to certain companies or areas?

All used autos require safety certification to be plated, so I don’t see it as a safety issue.

A: Pete Karageorgos, manager of media relations for the Insurance Bureau of Canada, replies:

As we don’t have the underwriting guidelines for auto insurers, we cannot state which companies will or will not cover a vehicle that is 20 years old. It’s an individual company decision what their practices are and those are filed with their rates provided to the Financial Services Commission of Ontario.

As brokers typically represent more than one insurer, and with many companies selling auto insurance in the province, it’s worthwhile to call various brokers to see who would offer coverage for a 1990 vehicle. Bundling home and auto insurance with the same insurer may provide additional savings.

Some vehicles may qualify as “classics” depending on age. Not all companies may have rates and offer insurance for older vehicles.

Eric Lai adds:

The insurance company involved confirms that their policy is not to take on newly-bought autos 20-years or older. Incidentally, that same company happens to be the current insurer under the seller’s policy.

If the seller isn’t able to sell his auto, they say he’s welcome to continue on with them since he was an existing policyholder before the vehicle hit the all-important 20-year cutoff. His current premium is $700 per year.

Q: My rear tires stick out past my car’s wheel wells about 4 cm. The police pulled me over and said they need to be fully inside the fender, but couldn’t find anything in the books to give me a ticket or a warning.

Is there such a rule? I’ve been driving like this for 26 years.

A: Section 66 (3,4) HTA states that mud guards are required on motor vehicles and trailers unless adequate wheel spray protection is provided by the body of the motor vehicle or trailer (i.e. fenders) or by a trailer drawn by the motor vehicle.

Unfinished motor vehicles or trailers proceeding to a works for completion are exempted from this regulation.

If your vehicle’s tires extend outside of the fender wells, a few dollars spent on mud guards might be a wise precaution.

Malcolm Higgins, owner of Tickettalk.ca Legal Services in Toronto, adds:

Section 66(3) HTA is exactly on point when there is evidence of water spray or other debris coming from the tire treads as the centrifugal force clears the tread during rotation.

During my years as a Toronto police officer, I used to charge this section in the rain as the `rooster tail’ effect can blind other road users.

The general penalty for this offence is $110. For commercial motor vehicles, fines can range from $200 to $20,000.

Q: Are newer cars’ computerized control systems better for reaching optimal operating temperature faster than older cars?

A: Electrical engineer Eli Melnick of Start Auto Electric in Toronto (www.startauto.com) replies:

Computerized controls don’t necessarily shorten the warm-up time of modern cars but they do facilitate faster “closed-loop” operation where the computer can fine-tune the fuel/air mixture shortly following start-up. That translates to a smoother, more efficient running engine and lower emissions. Smaller, aluminum engines do warm up quicker (as they have less thermal mass) but these also cool down more rapidly once the engine is shut off.

Q: Can I upgrade the incandescent bulbs on my vehicle to the new LED bulbs to save energy?

A: If your vehicle was factory-equipped with incandescent bulbs, it’s generally best to stick to these to avoid potential problems. Brake and turn signals, for example, may malfunction or the dash “bulb out” warning light may be falsely triggered if light-emitting diode (LED) bulbs are installed in place of original-equipment incandescent bulbs.

TICKET FIGHTER: Several readers have asked for contact information for the traffic ticket agent profiled in December.

Malcolm Higgins, owner of Tickettalk.ca Paralegal Services in Toronto, can be reached at 416-742-7474.

Email non-mechanical questions to Eric Lai at wheels@thestar.ca.

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