Hagerty Collector Car Underwriting Guidelines - updated from Hagerty website 9-2003

Because we only sell Agreed Value Policies, our program is designed to insure vehicles in very good to excellent condition that are either maintaining or increasing in value. It is the agent's responsibility to only submit applicants that demonstrate that he or she cares for the vehicle in a manner consistent with the ownership of something valuable. This means that the vehicle must be garaged when not in use, is driven for pleasure, shows, or club driving, and is not used for daily or back-up transportation.

1. Antique and Classic Vehicles   [ View Example ]

Hagerty defines antique or classic vehicles in the broadest sense of the terms. Stock vehicles built from the turn of the century through the 1960’s are included.

Examples:

  • Horseless Carriages or Brass and Nickel Era Cars: Pre-1915
  • Antique Cars: Pre 1925
  • Classic Cars: 1925 - 1948
  • Post War Classics: Stock Vehicles up to 1969

 

Note:

  • Risk profile must meet our Program Requirements (see section II)
  • Remember a vehicle’s value is primarily determined by its condition
  • Minimum insured value $3,500

 

2. 1970's and Early 1980's Vehicles   [ View Example ]

At one time specialty insurance companies stated that any vehicle 25 years old or older was collectible. Today, however, this is not the case. Auto maker's production numbers significantly increased in the 1970's and quality standards fell as many manufactures rushed to bring vehicles to market. Because of this increase in production, we still see many 1970's and early 80's vehicles driven daily today.

There are two criteria that we use to identify collectible vehicles from the 1970's and early 1980's. First, the vehicle must show a trend of an increasing market value. Second, an owner of a 1970's or early 1980's vehicle must demonstrate that he or she is treating the vehicle like a collectible.

Examples of appealing and collectible vehicle characteristics:

  • Convertibles
  • 2-door sports cars (few 4-door sedans are collectible)
  • Unique body shapes
  • Foreign sports cars
  • Muscle cars

 

Note:

  • Vehicle must be in excellent condition.
  • 24 years old and newer, minimum value $5,000.
  • 25 years old and older, minimum value $3,500.
  • Underwriting will place extra emphasis on:
    1. Good regular use vehicles (newer)
    2. Usage (pleasure only versus shows and club use)
    3. Secure garaging.
    4. Good, clear photographs.
    5. Vehicle is worthy of collecting.
    6. Odometer readings consistent with collector car ownership.

 

3. Exotics and Special Interest Vehicles that are 19 Years Old or Newer   [ View Example ]

What makes some newer vehicles more collectible than others? Supply vs. Demand. The more limited the supply of a well-designed, desirable vehicle, the more likely that it will become collectible and its value will be maintained.

Exotics

Exotic vehicles stand on their own as collectable cars because of their extremely limited production. By this we mean the car itself is the major factor in determining if it is collectible, and therefore insurable. There is less importance placed on the history of the vehicle or the owner’s relationship with the car.

Hagerty defines exotic cars as vehicles 19 years old or newer that have production numbers of less than 3000 per model per year.

Guidelines for Writing Exotic Vehicles:

  • Four color photographs of vehicles must be reviewed prior to issuing coverage
  • Annual mileage should not exceed 2,500 miles per year
  • Vehicle’s minimum insured value must be $40,000
  • Regular use cars must be less than three years old or valued over $20,000
  • All household drivers must have clean MVRs
  • Household may not have any youthful drivers (less than 5 years driving experience)
  • Odometer reading should not be excessive in relationship to the years owned or age of the vehicle
  • We can not write Exotic vehicles in Massachusetts and North Carolina

Special Interest

Special Interest vehicles do not automatically qualify to be insured as collectible because they are not as rare as Exotics. Special Interest vehicles are generally newer cars that have the potential of being driven on a daily basis. While they are typically low production sports cars, performance models or other special edition vehicles, it is the owner’s profile and usage that ultimately determine if the vehicle is collectable. The owner's profile must support a “special interest” in these types of vehicles in order to fit our program.

Most Special Interest vehicles will become tomorrow's classics. Once a Special Interest vehicle turns 25 years old, most auto hobbyist would consider it to be a collectible car.

Examples of "Special Interest":

  1. Extended history of ownership
  2. Collection of vehicles built by the same manufacture
  3. Member of club that supports the vehicle
  4. Drives a newer model of the same manufacture for regular use

Types of Special Interest Vehicles:

  1. Limited edition or anniversary vehicles
  2. Low production sport and performance cars
  3. Special production numbered vehicles (the first or last produced)
  4. Special race cars with a racing history
  5. Celebrity or special promotional cars
  6. Unique or limited availability options (engine)

Guidelines for Writing “Special Interest” Vehicles:

  • Four color photographs of vehicles must be reviewed prior to issuing coverage
  • Vehicles must be in excellent condition
  • Minimum insured value is $15,000
  • Annual mileage must not exceed 2,500 miles per year
  • Production numbers would typically be under 25,000
  • Regular use cars must be less than five years old
  • No excessive speeds within the household - 16 mph and up
  • We can not write Special Interest vehicles in Massachusetts and North Carolina
6. Modified Vehicles - Street Rods and Customs   [ View Example ]

A modified vehicle is any vehicle that has been changed from its original manufactured state and is no longer in its original "stock" condition. The degree to which a vehicle has been modified determines both if it is acceptable for our program and the rate with which it will be quoted. Typically, safety related items such as modern brakes, power steering, and wheels are not considered modifications. However, changes that improve performance and/or significantly increase the value of the vehicle are considered modifications. Examples of modifications are an increase in engine horsepower or an expensive custom paint job. A review of our Rod and Custom Worksheet will help you identify other types of vehicle modifications.

Note:

  • Four color photographs of vehicles must be reviewed prior to issuing coverage
  • A completed Rod and Custom worksheet must accompany the submission
  • Values at $50,000 or higher must be supported with a detailed appraisal, summary of receipts or other means of validation
  • Vehicles modified to a "Pro-street" set up are not eligible

 

7. Motorcycles   [ View Example ]

Hagerty recognizes that motorcycles are becoming increasingly more valuable and collectible. For our program, the market value of a collectible bike must be increasing and meet our minimum value limit. Many bikes do not have enough value to qualify. In general, Hagerty is looking to insure bikes from the late 1960s and older. However, we will consider bikes 25 years old or older that are collectible.

Note:

  • Motorcycles must be 25 years old or older
  • Minimum insured value $5,000 for a single bike submission
  • Minimum insured value $3,500 per bike for collections of 3 or more bikes
  • Maximum liability limits $100,000

 

8. Replicas   [ View Example ]

A replica car is a reproduction of an automaker's manufactured vehicle. They can either be professionally assembled or home-built and because of this they will vary greatly in their level of quality. Hagerty does not insure inexpensive, home-built kit cars. Replica cars should duplicate vehicles that are no longer in production. Some examples are the 1950's Porsche Speedster and 1920's Mercedes Roadster.

Note:

  • Replica vehicles must replicate a classic auto that was originally manufactured over 25 years ago
  • Vehicle's minimum insured value must be $10,000
  • Replica must be built to the same stock specifications as to when it was originally manufactured

 

9. Vehicles Under Restoration   [ View Example ]

Because the process of restoring a collector vehicle is a significant part of the hobby, we are happy to insure vehicles that are being actively restored. Our primary concern is with low-valued vehicles that never become fully restored. An applicant must demonstrate that the vehicle is being actively restored. Providing good photographs and, sometimes, work receipts will help to do this.

Note:

  • Four color photographs of vehicles must be reviewed prior to issuing coverage
  • Restoration should be at least 50% complete with an estimated completion date provided
  • Minimum insured value $5,000

 

10. Trailers   [ View Example ]

There are only two types of trailers that we insure in our program. They are, Vehicle Trailers and street rod trailers. Of these two, only street rod trailers are acceptable to be pulled behind a collector vehicle.

1. Vehicle Trailers

Vehicle Trailers are trailers that are designed to carry a collector vehicle. There are two types of "Vehicle Trailers": (1) enclosed and (2) open flatbed.

Note:

  • Must have a minimum value of $5,000
  • May not be pulled by a collector vehicle - confirm adequate towing vehicle
  • Our policy specifically excludes liability coverage on "Vehicle Trailers"

 

2. Street Rod Trailers (Coca Cola Trailers)

Street Rod Trailers are small trailers commonly pulled behind Street rods and customs. There are many types of trailers that we will refer to as Street rod trailers. Typically, they are custom designed and painted to match a Street Rod, but others may look like a miniature old fashioned Coca Cola cooler.

Note:

  • Minimum insured value is $3,500
  • Must be a small trailer
  • Must match or be a part of collector car's image
  • Camping trailers, such as Air Streams and Tear Drops, are not eligible for our program. The potential fire hazard from the cooking apparatus and asphyxiation from heaters puts them outside our guidelines.

 

11. Trucks   [ View Example ]

Hagerty recognizes that trucks are gaining in popularity as collector vehicles, especially older trucks up to the mid-1960s. We currently insure stock pickup trucks 25 years old or older that are in excellent original or restored condition. Trucks 1970 and newer pose unique usage concerns because they are easily driven for utility purposes and thus will be underwritten more stringently. Modified trucks, 1969 and older, may be acceptable when strict guidelines are met.

Note:

  • Trucks must be 25 years old or older
  • Modified trucks must be 1969 vintage or older. Severe modifications will not be accepted and usage must be primarily for show
  • Minimum insured value for 1970 and newer is $5,000
  • Minimum insured value for 1969 and older is $3,500

 

What Don't We Insurance

We do not offer an insurance product for the following types of vehicles:

  • Inexpensive home-built kit cars that do not replicate a classic vehicle
  • Cobra replicas (Replicas of the 1963-1967 Shelby Cobra Roadster)
  • Less than 25-year-old trucks and utility type vehicles
  • Vehicles customized for "off-road" usage
  • Pro-street vehicles - Vehicles modified exclusively for racing with features such as: roll cages, wheelie castors, nitrous systems, parachutes, etc.
  • Less than 25-year-old luxury cars that have been "retired" to infrequent use
  • Inexpensive 4 door sedans from the mid-1970s and newer
  • Vehicles used for commercial/business purposes

 

Program Requirements
1. Usage and Mileage   

Vehicles insured in our program must be used on a "limited" basis which is consistent with the operation of something that has collectible value. Usage for club functions, exhibitions, organized meets, tours, and limited pleasure driving is acceptable. Hagerty has no strict mileage limitation for collector vehicles used in this manner. Limited use does NOT mean that vehicles will be used for normal or backup transportation such as driving to and from work, school, or running errands.

Determining how a vehicle is used and what is an acceptable amount of "limited" use are key to our program's success. Begin by asking open-ended questions:

 

  1. How do you use your vehicle?
  2. How many miles a year do you drive your vehicle or anticipate driving your vehicle?

 

Note:

  • The industry standard for "limited" use is typically 2,500 miles per year
  • Newer vehicles (cars from the 70s and 80s) are easier to drive and are more likely to be frequently driven Therefore, underwriting is stricter
  • Are there youthful household drivers?
  • How old are the regular use vehicles?
  • How long has the applicant owned the vehicle?
  • What percentage of the vehicle's use is for pleasure driving compared to use for shows and other club functions?

 

Unacceptable Types of Usage:

  • Daily driving or back-up transportation on a regular basis
  • Commercial usage
  • Hauling, towing, or other utility type use
  • Off-road driving or two-tracking
  • Racing

 

2. Storage   

Collector vehicles must be stored in a fully enclosed and locked garage when not in use. This is to assure adequate protection against theft, vandalism, and weather-related hazards. The preferred form of storage is a privately owned garage or storage building located on the same property as the owner's residence. If the storage facility is not at the same location as the insured's residence, discuss how the insured will handle returning the vehicle to its secured storage after use.

  • Unacceptable Storage:
    • Public or private parking garages for condominiums and apartments
    • Public parking structures
    • Temporary storage facilities assembled of canvas and plastic, such as tents, domes or igloos.

 

3. Regular Use Vehicles   

Drivers of any collector car must have their own regular use vehicles. In other words, every driver in the household must have his or her own regular use vehicle for daily driving.

Note:

  • Applicant must own his/her regular use auto
  • Each household driver must have at least one regular use vehicle. Household drivers include roommates
  • Regular use autos must be less than 20 years old and in good condition
  • Motorcycles and public transportation are not considered regular use vehicles
  • Vehicles away at school with a college student cannot be counted as a regular use auto for the remaining household drivers at home
  • Trades vehicles such as, pickup trucks and utility vans, cannot be the only regular use vehicles in a household

 

4. Regular Use Insurance   

The named insured and all drivers must maintain regular use insurance in his or her name

Note:

  • Personal Auto Policy complies with the minimum liability requirements of the state in which the regular use vehicle is garaged and used
  • Named insured must be the same as the applicant
  • A current regular use declarations sheet confirming all regular use vehicles have liability and UM/UIM coverage must be supplied
  • Declarations must contain the following information:
    • The insured's name
    • Description of the regular use vehicle(s)
    • Coverage limits for each regular use vehicle
    • Policy dates, including inception and expiration

 

5. Driver Eligibility   

Due to our extremely low rates, only people with good driving records are eligible for our program. For applicants and household drivers with five (5) or more years driving experience, one or two minor violations are acceptable.

We will not accept major violations such as a drug or alcohol related offenses, reckless driving, or excessive speeding if they have occurred within the last 5 years (Some states limit this to 3 years).

Note:

  • Applicants must have 5 years licensed driving experience
  • Applicants 25 years old and younger must have clean driving records
  • Household drivers 25 years old or less must have clean motor vehicle records
  • We are unable to provide driver exclusions on our policies
  • Hagerty defines excessive speeding as 16 mph and over

 

Submission Requirements

A Complete Risk Submission Has Four Elements - Please Send Us All 4!

  1. Hagerty Application

    A completed application (NO BLANKS) must be signed by the insured (AND the producer) verifying information.
    Please use the online quote generator on the Hagerty Agent Website to calculate the premium, and choose "Online Application" in the navigation bar to complete an application online.

    *Additional Information required for street rods and customs:

    • Street rod and custom submissions should also include a completed component list (Rod and Custom Worksheet)
    • Because each street rod and custom is unique and therefore substantiating value is more difficult, we may ask for more information that may include the following: detailed component lists, bill of sale, restoration receipts, historical documents, appraisals that support market value with comparables, and extra photographs
    • NSRA members should attach a copy of their NSRA safety inspection if available

    IMPORTANT NOTE: Hagerty's minimum premium on all policies is $75.00

  2. Insurance Declaration Page

    A current copy of the insured's regular-use auto declaration page showing every person listed to drive the collector car. REMEMBER : requested coverage limits must not exceed these regular-use limits. Regular use auto policies that are written on a business or commercial form MUST include named DOC (Drive Other Car) coverage.

  3. Photographs

    Include good quality, recent photographs of the vehicle (Polaroids are okay):

    • One photo is required for all stock/original vehicles.
    • Four photos are required for modified, custom, exotic, and special interest vehicles. These photos must include an engine shot, interior shot, and a shot of the rear end of the car with the trunk open.
    • One photo is required of any carport.
    • For pick-up trucks, include one additional photo of the pick-up's bed.
    • Four or more photos are required for vehicles under active restoration.

  4. Premium Payment

    Send the GROSS CHECK (either from the insured or agency) payable to:

    Hagerty Insurance
    P.O. Box 1301
    Traverse City, MI 49685-1301

    Or, you can pay online after you have submitted a Hagerty Application.

    IMPORTANT NOTE: Hagerty reserves the right to evaluate all risks before coverage is made effective. No coverage is in place until specific notification. Agents have no binding authority.

     

Endorsements

To Add a Stock/Original Vehicle
Fill out section 2 on the first page and questions 1-11 on the second page of our application and fax it to us at 231-941-8227. Be sure to check the "endorsement" box on the bottom of the second page. If acceptable we will make coverage effective and send you the endorsement paperwork, ID cards and bill to be forwarded to the insured. Photographs need to be sent in with the gross premium payment within 30 days.
IMPORTANT NOTE: For all pickups, photos must be reviewed by Hagerty prior to endorsement.

To Add a Modified/Custom Vehicle
Fill out section 2 on the first page and questions 1-11 on the second page of our application and mail in to Hagerty along with FOUR photographs of the vehicle (exterior, interior, engine and trunk) and the Rod and Custom Worksheet. If acceptable, we will make coverage effective and send you the endorsement paperwork and ID cards to forward to the insured. Payment must be received within 30 days.

To Remove Any Vehicle
Please fax us a note or memo (231-941-8227) or email us at mailto:agentinternetshare@hagerty.com and ask us to remove the appropriate vehicle from the policy. We will send the prorated refund amount directly to the insured.

REMINDER: You can submit all of these endorsements at http://www.hagertyagent.com/ under "Policy Management".

Roll Over Business
Hundreds of agents and brokers are rolling their books of classic auto insurance over to Hagerty because of our product, price and service. Here is how easy it is:

If a stock/original (non-modified) vehicle is currently insured with one of our well-recognized competitors (e.g. JC Taylor, Grundy, Condon & Skelly, American Collector) Please call if you are unsure if we will accept a carrier for roll over.

Roll Over Procedures:

  1. Quote the customer using the Hagerty website "Get A Quote" page, match liability limits, and vehicle value and collect the premium.
  2. Complete and have the customer sign an Intent to Transfer letter (found in your Hagerty Agent/Broker kit) and online.
  3. Send us the following items either electronically from our website or via U.S. mail:
    the check, premium worksheet, transfer letter, a copy of the insured's regular-use vehicle insurance declarations page, and a copy of the current declarations page from our competitor.
  4. We will send the policy and ID cards upon receipt and acceptance. NO PHOTOS REQUIRED!

 

IMPORTANT NOTE: FOR STREET RODS AND CUSTOMS, PLEASE APPLY FOR COVERAGE USING THE NORMAL PROCEDURES FOR NEW BUSINESS.
HAGERTY RESERVES THE RIGHT TO REQUEST ADDITIONAL UNDERWRITING INFORMATION, IF NECESSARY

Renewals (Direct Bill)
Hundreds of agents and brokers are rolling their books of classic auto insurance over to Hagerty because of our product, price and service. Here is how easy it is:

Hagerty will send renewal billings and any requests for additional information directly to the insured 45 days prior to the renewal date.

Upon receipt of the premium, we will send the policy and ID cards to you to forward to the insured. Please make a copy for your records.

IMPORTANT NOTE: There is no grace period. Coverage will lapse on the expiration date.

Cancellations
Submit a signed ACORD policy release form to Hagerty. Upon receipt of the form, Hagerty will send notification and any gross return premium to the insured.

IMPORTANT NOTE: We will not backdate past 30 days.

Claims
We administer all claims in-house. Please report all claims immediately to our Claim Service Line at 800-922-4050,or online at http://www.hagertyagent.com/ under "Claims".

Accounting
You will receive a monthly broker statement (for months during which there is activity on your accounts). A schedule for renewals will also be included.

Condition Determines Value

Determining a vehicle's value can be one of the most difficult and subjective tasks that we perform. The most important factor in assessing a vehicle's value is its condition. On every application for insurance we ask the condition of the vehicle to be insured. We receive a variety of answers: fair, good, excellent, show, #1, #2, #3, #4. We take these answers very seriously when deciding if a car is worth as much as requested. Sometimes the photographs of the vehicle suggest a different condition than indicated on the application. In this situation, we often suggest a more appropriate value.

Below is an abbreviated excerpt from a commonly used valuation guide, Old Cars Price Guide. It gives very good descriptions of different vehicle conditions. You may wish to remember these condition gradations when assisting a customer who will be applying for insurance with Hagerty.

EXCELLENT: Restored to current maximum professional standards of quality in every area, or perfect original with components operating and appearing as new, or a 95-plus point show car that is not driven. In national show judging, a car in #1 condition is likely to win top honors in its class. In a sense, it has ceased to be an automobile and has become an object of art. It is transported to shows in an enclosed trailer, and, when not being shown, it is stored in a climate-controlled facility. It is not driven. There are very few #1 cars.

FINE: Well-restored or a combination of superior restoration and excellent original. Also, an extremely well-maintained original showing very minimal wear. Except for the very closest inspection, a #2 vehicle may appear as a #1. The #2 vehicle will take the top award in many judged shows, except when squared off against a #1 example in its own class. It may also be driven 800-1000 miles each year to shows, on tours, and simply for pleasure.

VERY GOOD: Completely operable original or "older restoration" that is showing wear. Also, a good amateur restoration, completely presentable and serviceable inside and out. This is a "20-footer." That is, from 20 feet away it may look perfect. But, as we approach it, we begin to notice that the paint may be getting a little thin in spots from frequent washing and polishing. Looking inside we might detect some wear on the driver's seat, foot pedals, and carpeting. The chrome trim, while still quite presentable, may have lost the sharp, mirror-like reflective quality it had when new. All systems and equipment on the car are in good operating order.

GOOD: A drivable vehicle needing no, or minor, work to be functional; also, a deteriorated restoration or a very poor amateur restoration. All components may need restoration to be "excellent", but the car is mostly usable "as is". This is a driver. It may be in the process of restoration or its owner may have big restoration plans, but even from 20 feet away, there is no doubt that it needs a lot of help.

RESTORABLE: Needs complete restoration of body, chassis and interior; may or may not be running, but isn't weathered, wrecked, and/or stripped to the point of being useful only for parts. This car needs everything. It may not be operable, but it is essentially all there and has only minor rust, if any rust at all. While presenting a real challenge to the restorer, it won't have him doing a lot of chasing for missing parts.

PARTS CAR: May or may not be running, but is weathered, wrecked, and/or stripped to the point of being primarily for parts. This is an incomplete or greatly deteriorated, perhaps rusty, vehicle that has value only as a parts donor for other restoration projects.