How to tell when a client needs specialty insurance

by Hagerty // February 4, 2019


 
The definition of a collector car has evolved in recent years – it’s no longer just age that defines collectability; newer cars with distinctive details not found on everyday vehicles can qualify, too. As insurance agents and brokers, taking time to understand the client and their car will provide you opportunities to offer tailored coverage solutions they may not find on their own.   
The 1999 Chevrolet Corvette or 2008 Ford Mustang you wrote on a standard auto policy just a few years ago is now gaining momentum in the collector car world. The cars people collect are getting younger as new generations enter the market, driving an increasing number of automobiles from the 1990s and 2000s.
 
Clients should be aware of all options when insuring a car. You’ll be viewed as a trusted adviser if you consider the following three items when discussing coverage:
 

Value

A client’s car may need a specialty auto policy because the value is on the rise or maintaining. A typical standard auto policy accounts for depreciation and may not leave the client with enough money to purchase a similar vehicle if a covered total loss happens. In contrast, a specialty policy with agreed value coverage ensures that your client will receive the amount agreed to on the policy.
 

Claims handling

A special car may have this status due to limited production, modifications or age; whatever the reason, a specialty policy differentiates from a standard auto policy and takes the necessary steps to make sure the car is brought back to its pre-accident state in the event of a claim, including no depreciation on partial losses. A specialty policy gives your client peace of mind with better protection for custom paint jobs, hard-to-find parts, and expensive stereo systems.
 

What to do for your clients

Remember: Not all auto policies are created equally. Most car owners will appreciate an agent or broker who ensures that their policy is just as special as the vehicle they drive.

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