Hagerty to Write Collector Car, Lowrider Policies

They scrape the pavement with ground-effects bodywork, shake side-to-side, and feature the fanciest air ride suspension systems on the market. These amazing cars, known as lowriders, are a fast-growing segment of the collector car hobby.

“I first learned about collector cars and lowriders while attending the annual invitation-only auto show on the 19th fairway at Pebble Beach,” Gordon Fitch, agent marketing manager of Hagerty Insurance explained. “This annual event draws a few hundred of the finest collector cars in the nation.”

Haggerty announced at the Independent Insurance Agents and Brokers of America Convention in Orlando that it has added two categories of lowriders to its list of customized and collectible vehicles. The Traverse-City, Mich.-based company has a close relationship with collector car owners and provides its 150,000 policyholders with a professional network, advocacy programs, towing, a newsletter and tips.

“There’s a surprising mix of policyholders,” Fitch said. “As you would expect, a lot of our policyholders are in their mid-50s, but at the same time there is a large contingency of customers in their late 20s, with an average income of $60,000.”

Fitch said his younger policyholders are the next collector car generation, many own three vehicles.

“One of the prime benefits of our collector car policies is that we offer an agreed-upon face-value policy,” Fitch said. “If a collector car has a stated value of $25,000, then unlike standard auto policies, if a car is a total loss we would pay that amount.”

Fitch explained that if a collector car owner wrote a standard policy, the value of the car would depreciate year-after-year, while the value of his policyholder’s cars often increase in value from year-to-year. He explained that because collector cars aren’t usually driven many miles per year, a collector-car policy costs about one-quarter the amount for a regular car policy.

As defined by Hagerty, a lowrider is a car or truck that has had its suspension modified to decrease ground clearance and usually includes an added hydraulic system or air-ride suspension (using a car’s air bag system) that gives it the ability to bounce or vary its ground clearance rapidly. However, Hagerty is unable to insure any car that is bounced or involved in bouncing or street dance competitions.

Lowriders 1980 vintage and older will be insured under the same criteria used for Street Rods. Vehicles are restricted to show, club or pleasure use and can’t be used by drivers every day. Owners must submit four photos, including views of the engine, interior, open trunk and a vehicle profile.

Lowrider models 1981 and newer will be covered under the same criteria Hagerty uses to insure exotic cars and will be eligible for that rate, with limited liability, uninsured motorist coverage and a $1,000 comprehensive and collision deductible. With newer model lowriders, only true show cars with customized interior and exterior modifications, and custom paintwork can be considered for coverage.