Keeping clients’ classic cars protected during winter

Cooler temperatures and autumn winds mean one thing for car enthusiasts: time to tuck classic and collector vehicles away for winter months. For some owners, that might also mean pulling the brakes on their insurance coverage while their beloved cars are stowed away for the off-season. But that’s a mistake, according to Nicholas Keith (pictured), senior manager of private client sales and business development at Hagerty.

“The common practice would be that a client putting their car away for the winter would call their broker and say, ‘I want comprehensive-only coverage.’ It doesn’t cover you for collisions,” said Keith. Comprehensive-only coverage means protection from fire, theft, and vandalism. But accidents often happen in storage, too.

“We recently had a claim where a glass pane had broken and shattered, scratching up all-original paint on a Pontiac GTO. It costs $60,000 to repaint that vehicle,” Keith shared.

He stressed that brokers and owners should thoroughly assess storage facilities before tucking their classic and collector vehicles away. For Hagerty, cars from 1900 to 1979 are considered classic or antique, while cars manufactured in 1980 or later are considered collector vehicles.

“Brokers must consider where clients plan to store their classic and collector vehicles. These may be outbuildings, properties that the owners have leased, or storage locations offered to them by someone else, but we need to be concerned about the condition of these properties,” Keith continued. “What if a roof collapses during an ice storm and damages the car? A comprehensive-only insurance policy wouldn’t typically cover that.”

Comprehensive-only coverage is an option when a classic car is undergoing restoration, part of a museum or exhibition display, or placed in long-term storage. But it wouldn’t pay for damage resulting from a vehicle falling off a jack while under repair, or a stored and parked auto rolling into the garage door after a brake failure. These scenarios are all common to classic and collector vehicles.

And just because their classic car is stored for the winter doesn’t mean owners won’t want to take it for a spin. Car lovers might be tempted to take a short cruise on a sunny winter day. But even brief trips like these mean their coverage should stay activated. “Hagerty believes cars are meant to be driven, and drives help to keep your car in good shape, too,” said Keith.

Hagerty’s insurance program is designed to provide full coverage year-round on classic and collector cars, ensuring these vehicles are protected from the unexpected. “It’s one annual rate, and brokers and their clients don’t have to make any changes. You don’t have to worry about damage when the car is stored.”

“Clients rely on agents and brokers to give them the right advice on how to protect their most cherished assets best,” Keith remarked. “When clients don’t have their cars insured properly, they’re left exposed.”

Hagerty offers unique coverage under its program, such as Hagerty Guaranteed Value®**protection and Cherished Salvage™*.Through Guaranteed Value, clients receive every cent of their car’s insured value in the event of a covered total loss.

“Guaranteed value is an agreed value that we assign on the vehicle at the policy’s inception,” Keith explained. “The client knows that for this vehicle, he’s guaranteed $100,000, for instance. There’s no discussion after the fact.” This contrasts with standard car insurance policies that provide “actual cash value” or “stated value” coverage, which may depreciate the value of a vehicle during a claim, resulting in a lower payout for the client.

“Through Cherished Salvage, a client would retain the salvage in the event of a total loss. This means if there were a part or a cost that would impact whether a car would be written off in the regular market, policyholders would get their guaranteed value but retain the salvage as well,” Keith continued.

“This allows them to take the time to repair the car and find the parts they need, which sometimes takes a year or two. We’ve had to send vehicles from North America to Europe to be repaired just because that’s where the specialty lies for a particular model.”

*Cherished Salvage is not available in MB. Submit claim under any government policy first and then our policy immediately after. Premium subject to change; may include DCPD/BVDC, if applicable.

**In the event of a covered total loss, Guaranteed Value coverage ensures your client receives every cent of their car’s insured value, less any deductibles and/or salvage value if retained (BC, MB & SK: and after settlement with government policy). AB & QC: Agreed value applies under the Guaranteed Value Plus Endorsement.

Guaranteed Value, Hagerty & Cherished Salvage are registered trademarks of The Hagerty Group LLC, ©2022 The Hagerty Group, LLC. All Rights Reserved. The Hagerty Group, LLC is a wholly owned subsidiary of Hagerty, Inc.