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Classic Collector Cars: Hagerty Covers Vehicles Under Restoration

For many, a “collector car” conjures an image of a gleaming 1967 Ford Mustang that is meticulously maintained and rarely driven. James Reid, lifestyle product development manager at Aviva Canada says, “The definition of ‘collector cars’ is far broader than people assume it is”. Hagerty Insurance recognizes this, offering collector car insurance that goes beyond the showroom floor.

For Hagerty, collector vehicles don’t have to be fancy or classic. As long as it’s not used for daily use, the minimum value Hagerty must insure your vehicle if it’s 24 years old or newer, is $5,000. 

Their tailored policies cater to a wider range as there is no minimum age requirement for their vehicles; what truly sets Hagerty apart is their coverage for vehicles undergoing restoration. This isn’t your standard car insurance. Let’s examine some key considerations to determine why you should consider Hagerty to insure your classic vehicle.


How Hagerty Protects Your Classic Car During Restoration

Vehicle Under Construction Coverage

To qualify for this coverage, you must provide detailed photographs and information about the ongoing restoration work. This documentation helps Hagerty assess the current state of the car and the nature of the restoration, ensuring that the coverage meets the specific needs of your project. 

Automatic Quarterly Value Increases

One of the biggest challenges during restoration? Ensuring your insurance keeps pace with your car’s rising value. As your vehicle’s restoration progresses, its value typically increases. Hagerty solves this by offering automatic quarterly value increases throughout the year of 10% on the car’s Guaranteed Value™, up to a maximum annual increase of $25,000. This ensures that the insurance coverage matches the increasing value of your car as improvements are made. So you can relax and not worry about scrambling to update your policy every time you make a significant upgrade.

However, it is important to note that the insured value returns to what was originally set at policy renewal, so be sure to review your policy coverage every renewal period in case adjustments are needed.

 Additional Tool Coverage

Understanding that restoration involves not just the vehicle but also the tools, Hagerty offers additional coverage for automotive tools as well. The limit for tool coverage can range from $250 to $750, depending on the specific policy details, providing peace of mind that your investment in high-quality restoration tools is also protected.

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Additional Add-Ons to Consider

Cherished Salvage® Coverage

The cherished salvage endorsement is an additional option for your policy. This endorsement allows the policyholder to receive the total agreed value while retaining the salvage vehicle in the event of a covered total loss accident. Importantly, the vehicle’s salvage value is not deducted from the final payout. 

Normally, the salvage, or what’s left of the vehicle in the event of a total loss, is sold at auction or taken out of the insured’s hands,” Reid explained. “A lot of these vehicles might not be worth an awful lot in terms of monetary value after a loss, but in terms of people’s sentimental approach, it’s priceless.

DISCLAIMER: *Cherished Salvage is not available in Manitoba. Submit a claim under any government policy first and then our policy immediately after. **Less any deductible; BC, MB & SK: and after settlement with your government policy.


How much does Classic Collector Car Insurance Cost?

As you can imagine, insurance costs mainly depend on the vehicle you’re insuring and the amount of coverage you want. But to help give you an example, an Ontario-based brokerage decided to quote the cost to insure some of the vehicles shown in the Fast and Furious movie Fast X. For context, the brokerage used Dom Toretto’s date of birth but changed his postal code to Ontario. 

All the quotes assume the cars are in excellent condition, with no modifications. 

“I think it’s safe to say some of the Fast X cars are modified,” The director of Personal Lines at the Ontario brokerage added. “As long as they are street legal, you could still get them insured… We might ask the owner of the El Camino to remove the rocket launchers.” 

Let’s take Dom’s legendary 1970 Dodge Charger R/T. This beauty is valued at around $147,000 to insure, but your driving record makes a world of difference. The insurance premium for this car with two speeding tickets in the past two years is $3,650, $2,404 without any traffic violations, and $1,302 as a classic/collector vehicle license plate.

The moral of the story? Collector cars are awesome but can be costly to insure. Your driving history, location, age and vehicle modifications can heavily impact your insurance costs.


Other Unique Hagerty Policy Features

Flexible Usage

Enjoy the freedom of driving your classic car without fixed mileage restrictions. Hagerty policies allow for leisurely weekend drives, trips to the movies, and participation in car events and cruises.

Specialized Claims Team

Experience superior service with Hagerty’s specialized claims team. Trained in collector vehicle repair, our adjusters understand the best materials and techniques, ensuring efficient and hassle-free claims processing.

Hagerty Drivers Club®

Join the Hagerty Drivers Club®, a comprehensive 24/7 full-service roadside assistance program. This includes lockouts, battery jumps, tire changes, emergency fuel delivery, and more, all with the assurance of flatbed towing using soft straps.

Through its specialized offerings, Hagerty provides unparalleled protection for classic collector cars, especially throughout the meticulous restoration journey. Recognizing the intricate processes and significant value appreciation involved, Hagerty’s insurance products are designed to ensure that classic car enthusiasts can undertake restoration projects with confidence. Tailored policies, including the unique “Vehicle Under Construction” coverage, testify to Hagerty’s commitment to safeguarding your investment as your vehicle’s value escalates throughout the restoration.

To learn about Hagerty or get a free quote for insurance, reach out to our advisor at one of our 10 locations!

This is a general description of coverage. All coverage subject to policy provisions, exclusions, and endorsements. Hagerty, Cherished Salvage & Guaranteed Value are registered or common law trademarks of the Hagerty Group LLC, ©2021 The Hagerty Group, LLC. All Rights Reserved.

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