The Case for Collector Car Specialty

Safeco Insurance®

How Car Collectors and Other Specialty Insurance Clients Can Help Grow Your Business

You probably remember many cars from your formative years: a beloved family car, the car from your first date, or the first car that took your breath away.

It was Baby Boomers who first had a real attachment to their vehicles. As the largest generation, Baby Boomers had the economic muscle that led to the collector car insurance marketplace. Not only did they restore iconic vehicles such as the Chevrolet Bel Air and the Ford Mustang, but they’ve also incorporated modern technology to create restomods, driving a whole new segment of collectibles.

With each successive generation, the collector car market evolves. Generation X car enthusiasts are heavily influenced by popular media. They love the “Bullitt” Mustang and the “Vanishing Point” Challenger. We had posters of Magnum’s 308 Ferrari and Knight Rider’s KITT, a 1982 Trans Am.

As the oldest millennials head into their 40s — and the start of their peak earning years — they are becoming a significant force in the collector car market, too. The cars of their childhoods, like the Mazda Miata, the Toyota Supra, and the BMW M3 are the classic cars of the future.

Some writers have prophesied an end to the classic car market, noting that concours-quality vehicle sales have slowed.

In counterpoint, I would call out the robust market for main street collector cars. And I’d point to previously unaffordable cars that may moderate in price as more come to the market. Plus, the Millennial generation is overtaking Baby Boomers as the largest living generation, and while they may not feel the same attachment to their grandfather’s cars, the restomod marketplace is active and growing younger. 

Essentially, the collector car market will live on, albeit with new cars added to the mix.

Where does this leave insurance agents? Hopefully you’re excited about the ongoing potential of collector cars as a niche line of business. You may have heard it said that niches lead to riches; collector car is a great example of that maxim. In fact, Liberty Mutual’s consumer research shows that collector car customers are among the most preferred market consumer segments.

Liberty Mutual polled consumers about their insurance shopping preferences. We discovered insureds who own specialty vehicles, like collector cars, are more loyal to their insurance agents, with two-thirds of them noting they prefer to stick with an insurance relationship once they find one that works. In fact, Liberty/Safeco sees a four- to five-point retention boost for customers who have specialty policies. These same customers return three- to four-points better loss ratios than customers whose accounts have only home or private-passenger auto policies.

The new business economics are just as strong. Liberty’s research found that customers with specialty policies have twice the policies per account and twice the average household written premium.

Essentially, by focusing on collector car and other specialty customers, you can increase your agency’s top and bottom-line results with the same amount of effort.

In conclusion, we’re bullish on the collector car market. As you seek out specialty clients, don’t assume Boomers will be the only clients in need of collector car insurance. The shifting demographics of collector car consumers are compelling and can lead you to a more preferred book of business. 

Safeco Insurance has something special under the hood

It’s more than a car, it’s a treasured vehicle, passion project... even an investment. And we know its value is both financial and emotional. So let Safeco help you select the best coverage so you can protect your classic ride.

Agreed Value Coverage

All vehicles in our collector car  program are insured for agreed value. Our max insurable value is $1 million. Insure just one vehicle or a whole collection!

We Make it Easy

We only ask for photos of vehicles valued at $20,000 and higher. We’ll rarely ask for an appraisal. Quote, bind and issue in just minutes!

Drive your Classic

Restricted-use rate lets your  customers drive up to 5,000 miles  per year, or even to work occasionally. We also have a daily-driver  program, too!

© 2018 Liberty Mutual Insurance. The audience for this information includes agents and brokers nationwide, and is therefore general in nature. Every agent and broker is responsible for knowing the guidelines and laws that govern rating, underwriting, and claims handling in their states. Check your Product Guide(s) for details on what is covered in your state.