Why Hagerty Is the Preferred Insurance Choice for Classic Car Collectors

      Hagerty

      It was another wonderful July in Northern California, with clear skies and the captivating scent of pines, firs, and laurels carried by the breeze. Daniel always felt heightened awareness on this drive through Mendocino National Forest, as every detail filled the cabin of his Ford Model A. The sound of the big inline-four engine and the vibrations traveling through the cold metal of the steering wheel made this drive feel like heaven for Daniel. However, on July 27, 2018, a wildfire erupted. This was a common occurrence in the area, but the flames soon overwhelmed emergency responders. By year’s end, nearly two million acres had burned in more than 7,900 fires, leading the state to label it “the deadliest and most destructive wildfire season on record.” Ultimately, Daniel was forced to declare his Model A a total loss.

      With traditional car insurance offered by mass-market companies, the replacement value is typically based on a third-party book value used by car dealers, manufacturers, banks, and local governments. However, the valuation for a 10-year-old Honda Accord with 120,000 miles doesn't directly relate to that of a collector car, especially a pristine pre-war American vehicle that local Ford dealers cannot service. Collectors like Daniel bypass those mass-market insurers, and rightfully so. We consulted with a genuine Hagerty customer and a Hagerty Licensed Sales Agent to explore the product. Car insurance can be complex and varies widely based on individual circumstances and locations, so when selecting your policy, work directly with an insurance company or consult a licensed agent.

      “I have been with Hagerty for years,” Daniel shared. “They managed my recent claim for the total loss of my cherished Model A in the recent Northern California wildfires. They were by far the easiest insurance company to deal with,” he noted.

      A member of the Redding Hotshot crew during the 2018 Mendocino National Forest fire. BLM, Colby Jackson

      Hagerty operates differently. Instead of utilizing depreciated values for regular vehicles, Hagerty’s Guaranteed Value coverage allowed Daniel to set the value of his Model A before disaster struck. He received the full payment without any deductions or complications. This approach is standard for all Hagerty policies. This insurance protects your vehicle at its true worth.

      Not all vehicles need to be high-priced classics to qualify. For example, Andrew Collins, The Drive's Executive Editor, owns a 1975 International Scout that he admits is on the “rougher end of a rolling restoration.” It’s not in its original state—thanks to previous owners and modifications by him, it now features a four-inch lift, aftermarket bumpers and wheels, custom exhaust, and unique paint choices. Valuation is even trickier since he never actually purchased it; he traded it for a battered old Toyota Tundra.

      Andrew P. Collins

      “I was on the cheapest insurance plan from one of the large carriers,” Collins explained. The issue is that mainstream insurers often do not consider unique vehicles like this. They tend to pay out the smallest and quickest check possible. Conversely, Hagerty is properly equipped to document non-standard classics and ensure that owners receive fair compensation if something goes wrong.

      With a team of knowledgeable agents and comprehensive records on classic car valuations—Hagerty Valuation Tools are recognized as the gold standard in antique car value data—Hagerty is uniquely positioned to underwrite vehicles that don't fit typical categories.

      In a conversation with Hagerty about his Scout, Manager Max Hansen detailed how the insurer provides a more precise valuation for modified vehicles:

      “If something were to happen and the vehicle were damaged, you would receive the same aftermarket bumper instead of an OEM part. You would arrange for the suspension to be replaced as-is rather than just getting a stock replacement if your suspension were damaged. Several factors would classify you as “modified,” such as engine modifications that enhance horsepower, with suspension being significant. Once we identify the vehicle as “mod,” we move beyond strict value recommendations, allowing us to consider the value of those modifications in determining what your vehicle is worth. It's crucial to avoid over-insurance, which could mean higher costs, but we also want to ensure you're not underinsured.”

      As experts in classic cars for decades, Hagerty’s market data is unparalleled in accuracy and specific coverage by trim. The Hagerty Valuation Tools form the basis of every policy. The agreed-upon value is just a part of the comprehensive research behind Guaranteed Value coverage. The Hagerty Price Guide, in publication since 2006, tracks three main data sources. Given that most classic car transactions occur privately, Hagerty Price Guide analysts closely monitor these sales via the company’s insurance data. Auction results, although a smaller segment, provide a visible market aspect, and Hagerty often dispatches specialists to inspect auction vehicles to understand their real-world state and configurations. Finally, Hagerty utilizes a broad network of reliable dealers to gather detailed sales data