What're The Differences Between Hagerty And Normal Insurance?

Enthusiasts spend hours, days, weeks, months, and even years dreaming of their perfect classic or sports car. Some even spend every spare penny that comes their way in anticipation of one day finally being able to head out and buy that '60s Mustang, '90s Porsche, or restomod Bronco — whatever it may be.

However, the purchase of said dream vehicle is only the prologue in what could be a very long and enjoyable story. You need to get to know the vehicle, understand its quirks and foibles, get to grips with the best maintenance regime, oh, and you need to insure it too. That, in addition to adding fuel and turning the key, is really one of the only barriers standing in the way of you actually using the car once it's been purchased.

You could quickly jump on a comparison site to find the cheapest insurance quote, or you could just call up whoever you're with for your daily driver and ask them to add the car on. They're all perfectly legal options, but one company — Hagerty — has spent a lot of money marketing itself to the enthusiast, and claims to offer tailored policies that might tempt some classic owners in. But is this just marketing, or does Hagerty actually do things differently?

Certainly, Hagerty claims to offer a whole host of benefits to car enthusiasts when it comes to insuring their pride and joy, but what exactly does that mean? And are there other options?

Drivers might worry that if their classic is written off in an accident, the insurance provider might have it valued as just an old beater, and they would be compensated as such. Hagerty, however, knows the difference between old nails and desirable classics, so agreed valuations are offered to customers, instead of stated or actual cash values, which is what most regular insurers use. There are some insurers who will offer agreed values, be it for classics, modified, or kit cars, but generally on request. Hagerty also regularly predicts which cars' prices are on the rise, which means customers get an up-to-date valuation with the issue of each policy.

Secondly, Hagerty allows for flexible usage. Regular insurers may have mileage limits and usage restrictions placed on when you can use the car, but Hagerty's policies allow drivers to use their vehicle whenever they want. Hagerty isn't alone in offering this, though, and some drivers might even find temporary insurance policies, which only insure the car for a few days, or weeks, a cost-effective alternative.

When it comes to making a claim, or registering a policy, Hagerty also claims its staff are familiar with classic cars, and understand that repairs after an incident aren't necessarily as easy to handle as they would be with a modern commuter. It can be reassuring to have someone on the other end of the phone who understands why expensive heritage panels are worth paying for over cheaper aftermarket pattern units, or why one particular body shop is worth the expense over another. This level of knowledge isn't always guaranteed with a normal insurance provider, but there are other specialist underwriters out there in addition to Hagerty, that can lend a similarly trained ear.

Yes, Hagerty does charge insurance premiums, of course, but the company says it doesn't charge you any extra for the enthusiast-based approach provided. In fact, Hagerty says that its premiums can be had for up to 21% less than a daily driver insurance policy. The organization claims that's because regular insurers may charge as if you were using the vehicle on a daily basis, which naturally increases the risk of an incident, whereas Hagerty recognizes this likely isn't the case.

Furthermore, Hagerty also has a Driver's Club, which guarantees members certain benefits, such as roadside assistance with classic-friendly recovery services — think flatbeds and soft straps — plus exclusive automotive discounts, member-only events, and an enthusiast magazine.

However, Hagerty is far from the only insurer offering savings to owners of classic cars. Bailey Insurance Agency informs us that most classic car policies cost in the region of $200 to $600, whereas daily driver policies tend to sit around $1,000. Presumably then, it's quite easy to make a saving equivalent to what Hagerty advertises by going with any enthusiast-geared insurer, such as American Collectors, or American Modern.

So, while it's clear that Hagerty tweaks its approach toward the enthusiast, it doesn't reinvent the wheel. At the end of the day, the company is still selling an insurance product, and while the classic-centric approach certainly differentiates Hagerty from many everyday policies, it doesn't separate it from other specialist insurers.

Plenty of other insurers offer similar benefits to Hagerty, such as American Collectors' agreed valuation feature. The firm also includes 'inflation guard,' meaning it will allow for up to 6% adjustment of the agreed valuation, if it can be demonstrated that the car covered has benefitted from appreciation over the year, prior to a claim.

Hagerty is not alone, then, and choosing the right insurance policy for you will come down to what you're insuring and what you're using it for. Car And Driver highlights Hagerty as the best insurer for cars undergoing restoration, but then suggests Heacock Classic Insurance as a better choice for race-prepped classics. As an all-rounder, meanwhile, Car And Driver's pick is American Modern. As ever, our advice to consumers is to shop around for the policy that suits you best.