What Insurers Look for in Collector Car Owners: The Inside Scoop
Navigating Collector Car Insurance
Owning a collector or exotic car is a dream for many, but insuring one? That’s a different ballgame. As the collector car market evolves, so do the expectations of insurance providers. If you’re a proud owner or an aspiring enthusiast, it’s crucial to understand what insurers are really looking for—and it’s not just about your ability to pay.
High-Performance Driving Experience Matters
For exotic cars, particularly those with engines pushing 650 horsepower or more, insurers don’t hand out policies lightly. They want to ensure you can handle such power responsibly. Most carriers require at least seven years of high-performance driving experience, proving you’re not only skilled but also aware of the unique risks associated with these vehicles.
The Age Factor: Are You Old Enough?
For younger drivers, insuring a collector or exotic car can be particularly challenging. If you’re under 26, here’s what to expect:
Surcharges: Younger drivers often face higher premiums due to their perceived risk level.
Exclusions: Many insurers outright exclude drivers under 26 from collector car policies, forcing younger enthusiasts to explore alternative options.
While the ongoing Great Wealth Transfer—a monumental $72.6 trillion being passed between generations—is introducing a younger demographic to collector cars, the insurance industry has been slow to adapt. Underwriting standards still favor older, more experienced drivers.
Why Power Ratings Matter
Insurers closely examine the car itself, especially its power output. Vehicles with more than 650 horsepower are often viewed as significantly higher risk. If your dream car exceeds this threshold, you may face limited insurance options—or significantly higher premiums.
Solutions for Younger Drivers
If you’re a younger collector facing challenges in securing insurance, there are ways to navigate the system:
Layering Coverage: This involves using multiple policies from different carriers to achieve the agreed value of your vehicle. It’s a strategic way to meet insurer requirements while getting the protection you need.
Non-Standard Insurance Providers: Some companies specialize in high-risk policies, including those tailored to younger drivers. These carriers can be a lifeline when traditional options fall short.
Tips for Navigating the Insurance Landscape
To make the insurance process as smooth as possible, here are actionable steps to prepare:
Build Your Driving Resume:
Participate in high-performance driving courses or track days. These not only enhance your skills but also demonstrate to insurers that you’re a responsible driver.Choose Your First Car Wisely:
If you’re under 26, starting with a less powerful collector car can make it easier to secure insurance. Save the 700+ horsepower dream car for later.Work with Specialized Brokers:
Seek out brokers who focus on collector and exotic car insurance. They can help identify carriers willing to work with younger or less experienced drivers.Document Your Experience:
Maintain records of driving courses, certifications, or car club memberships. These credentials can strengthen your application.Plan for Higher Premiums:
If you’re young or insuring a high-powered car, be prepared for increased premiums. Factor this into your budget to avoid surprises.
The Road Ahead for Younger Enthusiasts
The collector car market is evolving, with younger buyers driving demand for more inclusive insurance policies. While the industry is still catching up, understanding the current landscape can help you overcome obstacles.
Whether you’re 25 or 55, owning a collector car is about more than the vehicle—it’s about the passion, community, and legacy that come with it. By meeting insurers’ expectations and equipping yourself with the right experience and documentation, you’ll be ready to enjoy the ride of a lifetime.
As a member of our community, you have access to exclusive insights and expert recommendations. We invite you to share your experiences and join a network of passionate car collectors. Have you filed a claim? Did your insurer go above and beyond? Or do you have questions about coverage for unique collections? Share your stories and insights with us, helping fellow collectors make informed decisions.
We’re excited to dive deeper into collector car insurance, exploring topics like vintage car restoration coverage, international transport insurance, worldwide coverage, and more. Stay tuned for future articles and exclusive content. If you would like to contribute to an upcoming blog post, please do not hesitate to get in touch by filling out the form below!
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Written by Dana Acabbo & Stephen Mills
