Cars from the 1990s have hit a new collectors’ milestone — here’s what you should know
Cars from the 1990s have hit a new collectors’ milestone — here’s what you should know | Insurance Business Canada
Insurance News
Cars from the 1990s have hit a new collectors’ milestone — here’s what you should know
How brokers can help auto enthusiasts have peace of mind
Insurance News
By
David Saric
This article was produced in partnership with Hagerty
David Saric, of Insurance Business, sat down with Hagerty’s Todd Hutcheson, vice president of business development, Canada, to discuss how to best safeguard vehicles from the 1990s that are now considered classic automobiles
As the 1990s recede further into the rearview mirror, automobiles from that decade have now reached a new milestone — classic status.
Models like the Mazda Miata, Chevrolet Camaro & Corvette, Dodge Viper & Stealth, Ford Mustang & Probe, Nissan 300, Plymouth Prowler, Acura NSX, Toyota MR2 & Supra, Porsche 911 are now considered collectibles and need to be properly treated and protected as such.
The avid car enthusiast that is preoccupied with growing their impressive fleet is also undergoing a shift, where the younger generations are now getting in on the action.
“We are seeing more Millennials and even Gen-Zs represented in the car community, and their interests are being clearly showcased in the public car-buying market,” said Todd Hutcheson, vice president of business development, Canada at Hagerty.
“Through our monitoring of market trends, and vehicle values as it relates to the collector car market, it’s clear that 1990s-era collectible vehicle values are continuing to rise at a double-digit pace, which is largely being fuelled by the behaviours of these emerging generational representations.”
As a whole new cohort become car collectors, it presents an entirely new audience that brokers might not be engaging with yet, leading to further business opportunities and relationship building.
Figuring out if a car is a truly cherished collectible
For the auto aficionado, a vehicle serves more than a utilitarian function — it also hits a sentimental nerve.
“As a broker, the first key identifying factor in effectively spotting a collector car owner in conversation is being able pinpoint the emotional connection related to their special vehicle(s),” Hutcheson said.
“This level of affinity (or healthy obsession) often is driven from personal significance, nostalgia, rarity, and/or condition, which often leads into a high level of care in ownership exhibited as it relates to vehicle usage, and how they are protected.”
These are some other things to keep in mind when figuring out if a car is a cherished collectible in the eyes of the owner.
Through conversation, is there a level of excitement about the car, its condition and its value? (or even a name for the car)
Is the vehicle driven seasonally? (ie. is the customer calling to add or remove coverage)
Would other vehicles in the household be considered the primary means of transportation, leaving the fun vehicle for evening and weekend cruising and adventures?
Does the vehicle have a special place in the garage, or is it kept at a specialized car storage facility, and is it tucked away with care and attention for the winter?
When parking in a public area, does your client prefer to park far from the others as a means of protecting their pride and joy from door dings?
“If the above sounds true, you might find yourself talking to a collector car owner,” Hutcheson said.
Protecting your client’s most cherished assets
When thinking about how to impart the best risk prevention tips and tricks to safeguard a client’s classic vehicle, Hutcheson stated that ultimately, “risk understanding and risk prevention go hand in hand.”
It is extremely important that a broker is able to figure out the true value of an insured’s vehicle at the onset.
“At Hagerty, we have unique tools and resources, along with a tailored policy that helps our brokers properly establish and cover the value of that beloved, well-cared for, and often appreciating collector car,” Hutcheson said.
Alongside establishing value and finding the perfect policy to protect a vehicle, such as Hagerty’s Guaranteed Value™ coverage — where a client will receive every cent of their car’s insured value and no depreciation in the event of a covered loss* — the team has also been adding new options to provide extra peace of mind.
“This includes Market Value Protection (increasing vehicle values), Spare Parts, Automotive Tools and Papers, Car Covers, Evacuation Expenses and more,” Hutcheson said.
Lastly, there is also the need for classic car owners to be vigilant of increasing auto theft throughout Canada and learn how to avoid this worrying trend.
“We are seeing more of our customers taking proactive steps to protect their beloved collector vehicles through the installation of anti-theft recovery systems, diligent habits relating to car key and vehicle storage, and steering-wheel lock systems,” Hutcheson said.
To learn more about how to best prepare clients looking to protect their collectable vehicles, email [email protected].
*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. Policies are underwritten by Elite Insurance Company. Some coverage not available in all provinces. This is a general description of coverage. All coverage subject to policy provisions, exclusions, and endorsements. Hagerty determines final risk acceptance. Hagerty, Guaranteed Value & Hagerty Valuation Tools are registered or common law trademarks of The Hagerty Group LLC, ©2024 The Hagerty Group, LLC. All Rights Reserved. The Hagerty Group, LLC is a wholly owned subsidiary of Hagerty, Inc.
Drive your business further. Established in 2009, Hagerty is Canada’s leading classic and collector insurance program. We provide specialty insurance for more classics than anyone else in the world. Our unique agreed value policy allows you to enjoy your classic with the peace of mind that comes with having coverage designed with a collector in mind. Our policies are underwritten by the leading underwriter in the world, Aviva.
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