The Car Collector’s Compass

The most valuable car in the world is, a 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe, which sold for a staggering $142 million in 2022. It’s the pinnacle example of a collector car capable of ramping up to 180 mph and winning world-class races. It’s one of only two prototypes made by Mercedes-Benz’s racing team. Many consider it a top example of great design and engineering.

Not all collector cars are high-performance race cars. Some people collect cars for sentimental reasons or just because they think they’re cool. The 1969 Dodge Charger R/T is a good example. It’s often called the quintessential American muscle car, and many people recognize it from its quick appearance in The Dukes of Hazzard.

Top models that car collectors covet include the Ford Mustang, which debuted at the 1964 World Fair, the Chevrolet Corvette, a best-selling sports car, and the Dodge Charger SRT8, which blends muscle car appeal with utility.

Ford models in particular are credited with starting the ‘hot rodding’ trend. As after returning from World War II many American GI’s with newfound skills, and desire for speed found an outlet in transforming everyday cars into powerful machines. Today, hot rodding and car collecting continues to thrive as a beloved facet of American car culture.

July 11 is Collector Car Appreciation Day. No matter what models you collect, most car enthusiasts know there’s never enough time to enjoy a classic ride on the open road. So, roll down the windows and join us as we explore the basics of car collector insurance. We want to make sure that wherever your cars are—whether on the road or in your garage—they’re protected. 

Collector car market revs up

The car collector market in the U.S. has grown over the past few decades. Today, about 31 million collector vehicles are in the country. States like California and Florida have the majority of collector cars. These vehicles range from modern high-performance cars to popular classic models. Each one has different insurance needs and risks that collectors should consider protecting the cars sitting in their garages, driveways, or even on loan to museums.

Collector cars are vehicles valued for more than their practical means of transportation. But just because a car is expensive doesn’t mean it’s a collector's vehicle. Collectors might focus on vintage cars from 1919 to 1948, classic cars 20 to 50 years old, antiques older than 45 years old, or modern cars around 15 to 25 years old. Some collectors mix different groups based on their interests. When choosing a collector car, they consider factors like:

• Age
• Rarity
• Condition
• Historical significance
• Aesthetic appeal

Many groups focus on specific types or eras of cars. For example, the Classic Car Club of America (CCCA) considers cars made between 1915 and 1948 classics. Hagerty, on the other hand, includes modern classic cars from the 1980s onward.

Collectors value their cars' art, design, engineering, and special features. Their insurance should match their unique collection, not just a standard policy that might not recognize how much their vehicles are worth or their importance.

Driving value: It’s more than MSRP for collector cars

The collector car market can be unpredictable. At Marsh McLennan Agency Private Client Services (MMA PSC), we suggest clients regularly review the agreed-upon value of their cars. This isn’t as simple as looking at the Kelley Blue Book or the car’s original price. The actual value of collector cars depends on factors like rarity, age, history, provenance, and more.

For modern super and hyper car collectors, the sticker price or MSRP doesn’t always reflect the car's worth later. Because these cars are rare, with low production numbers and limited allocations, their value can be different from that of most cars. Usually, cars lose value as soon as they’re driven off the lot, but with these high-end cars, the opposite can happen. Getting allocations for limited or one-of-a-kind vehicles from brands like Ferrari, Lamborghini, or Porsche can be tough or even impossible, which can drive up prices on the secondary market.

Because of this, we often recommend our clients work with appraisal companies for their high-value car collections. Many car collector sales happen privately, so public data can be limited or unavailable. 
 

Our team at MMA PCS specializes in collector cars and knows, both professionally and personally, that value is more than just the MSRP or VIN. Not properly valuing collector cars can be costly. For example, after the wildfires in Southern California, many rare cars were lost. These one-of-a-kind vehicles were undervalued because insurance only covered the MSRP value, not their actual worth.

That’s why it’s important to keep your broker updated if you own collector cars and have work done on them—like installing a custom stereo, adding new wheels, or restoration.
 

Under the hood: Key insurance considerations for collector cars

Traditional auto insurance mainly considers things like how much you drive each day, accident history, and depreciation. But these factors don’t really cover the unique needs of collector cars. Instead, specialized policies focus on agreed-value coverage, limited usage restrictions, and strong protection against theft and vandalism.

The financial implications of not having the right insurance can be serious. Some collector cars have sold at auction for tens of millions of dollars, so making sure you have proper coverage isn’t just a good idea—it’s essential. Car collectors should consider:

• Bodily injury protection
• Coverage for underinsured or uninsured drivers
• Diminution in value for partial loss
• Extra options like spare parts, restoration coverage, or roadside assistance
• Liability and trust coverage
• Limited use policies
• Medical payments
• New car collector value
• Property damage coverage
• Regular review of agreed value
• Trip interruption coverage

Collector cars are often rare and high-value, which may mean more risks than cars used mainly for everyday driving. For example, high-value cars like the 1963 Ferrari 250 GTO might be targeted for theft or parts, especially if stored in public places or at events. Collectors should think about advanced security measures such as monitored burglar and fire alarms, GPS tracking, and secure storage. For very valuable cars, you might also want to consider sprinkler systems, water leak detectors, advanced video surveillance systems, or professionally managed off-site storage.

Besides the risk of theft, older and classic cars may have more mechanical problems, especially if they’re driven rarely. These cars often have complex systems, and the same features that make them valuable and fun to collect can also make them more sensitive to temperature changes or improper storage.

Car collectors should find secure, dry, insulated, temperature-controlled, and well-ventilated storage. It’s best to keep your car out of the elements as much as possible. UV light, snow, rain, dirt, and heat can all damage our car. Storing a classic car in a heated garage with a steady temperature and a tarp underneath is one method that is recommended.

Some questions you can ask yourself as you evaluate storage facilities are:

1. Is there proper protection against significant weather events?

2. Is the facility raised above flood levels?

3. Is the area inside the facility leased or owned?

4. Who has access to the facility?

You should also consider the risks of natural disasters when evaluating your storage facility or garage. It’s helpful to have or review:

Elevation certificates: These are documents prepared by a professional land surveyor. They show details about your property, such as how close it is to flood zones and the lowest points of elevation, based on FEMA guidelines.

Evacuation plan contracts: If you have a car collection, consider working with a company that handles evacuation planning and transport in case of a natural disaster. While many disasters are unpredictable, having an evacuation plan may save your collection from fire, storm surge, or flooding. This type of contract may also make it easier to get insurance in areas like Los Angeles, Miami, and Naples, Florida.

Car lifts: These are often used to store cars vertically in your garage but can also help reduce flood risk.

Reviewing your car collection regularly can help you spot and reduce risks that might affect your enjoyment or the value of your collection.

Cruise with confidence: The value of working with a broker

Many of our insurance brokers are also car collectors. This means they understand collector vehicles well and can help you navigate the unique insurance needs and challenges. They’ll work with you to create a plan that considers your vehicle’s value, how you use it, and specific risks. Our brokers are here to help you understand the nuances of collector car insurance so that you can protect your prized vehicles from theft, vandalism, natural disasters, and maintenance issues.

In the world of car collecting, attention to detail and craftsmanship matter most. Your broker should share those values as much as you do.

Victor Carter Collector cars aren’t just assets, they are passions on wheels. My role is to make sure they are protected with the same care and precision that owners put into preserving them.

Michael Davis’ passion for cars started before he can remember, growing up surrounded by car enthusiasts and racing fans. In particular, his Great Uncle Russ (Russell Shea) was a big influence. Now, Michael combines his passion for Collector Cars and Motorsports with my insurance career, sponsoring events like Cars & Coffee, the Lime Rock Historic Festival, and the Greenwich Concours d’Elegance.

Ron Hess started restoring cars when he was just 15 years old, a 1968 Chevelle, which he still has in his collection today. Ron singlehandedly tackles every part of the process, from engine rebuilding to bodywork, interiors to painting, he knows that investment value is not just measured in dollars but also in pride.

Bob Kerner takes it to the next level with his thirteen-year involvement as a Board Member and now Co-Chairman of the La Jolla Concours d’ Elegance, and longstanding member of the Classic Car Club of America.