Think about the last time you bought your luxury or exotic vehicle. Did you shop around for car insurance, do your due diligence, and compare rates? Or did you arrange coverage from the first company that gave you a quote, and faxed over an insurance card, so you could drive your prized possession off the lot as quickly as possible?
The truth is that all insurance companies are not created equal. Especially when it comes to collector car insurance that’s designed to protect a full range of exotic, vintage, classic, luxury, high-performance, or even costly-to-repair vehicles.
What’s the difference between high end and standard car insurance?
In general, high-end insurance companies cater specifically to the needs of successful individuals. Not only do they understand that owning an exotic car is more than just transportation, but they understand how to adequately protect your high-value asset(s), while also preserving your lifestyle. In fact, many offer collector car policies as part of an entire package of insurance coverage that includes your home insurance, jewelry protection, yacht and boat coverage, etc.
Standard or middle-market insurers, on the other hand, certainly offer the car insurance coverage you need, but their policies are typically built for everyday vehicles, not rare, exotic, or collector cars. If you purchase your insurance from them, you may end up underinsured.
Among the key differences that you’re likely to find between middle-market and private client insurance companies include:
Valuing your vehicle
High-end insurers for private clients offer agreed value policies, which means you agree upfront about how much your car is worth. Then, in the event of a total loss, that’s the amount you’ll be paid—no depreciation and no surprises. Middle-market policies, by contrast, usually use actual cash value, which subtracts depreciation.
Using original parts for repairs
The experts at private client insurance companies understand that repairs for exotic, high-end vehicles must be made with original equipment manufacturer (OEM) components that meet high-quality standards—and maintain the value of your car. In addition, they have pre-approved networks of repair shops or allow you to use a specialty mechanic of your choosing. Standard insurers, on the other hand, may limit you to general repair shops or try to suggest cheaper fixes that can diminish performance and resale value.
Extending coverage limits
Insurance companies that serve successful individuals can typically offer protection for cars worth around $250K+ and liability insurance limits up to $1M (with the option to extend.) But standard policies are usually appropriate for cars valued at $150K or less and may not offer limits of liability insurance protection that can protect your wealth, if you are sued as a result of an accident.
Offering cherished salvage
If your rare, high-value car is damaged in an accident and deemed a total loss beyond repairing, high-end insurers can not only pay you the agreed value for your car, but also give you the option to keep your damaged car so you can sell it to other rare car collectors who may be searching for components to restore their own cars.
Prioritizing security
In total loss situations, an insurance company dedicated to private clients will take the time to do a data sweep and delete personal data, like names, phones numbers, addresses, that’s been stored in your car’s navigation or computer system for security purposes. Other insurers typically will not take this precaution.
Providing luxury leasing
If you drive a luxury car and it is damaged in an accident, a private client insurer can set you up with the same or similar type of luxury rental from an elite leasing company for you to drive while your own car is being repaired—without a per-day limit. A standard insurer, on the other hand, will likely cap your car rental expenses (e.g., $50 or $100 per day) which may not be sufficient to cover the expense of renting a car of comparable value.
Allowing flexibility
High-end collector policies can allow for more flexibility—whether you take your car to shows, drive on weekends, or ship it for display. Middle-market insurers can restrict how, when, and how far you can drive your car. This is because they’re focused on insuring vehicles typically used for commuting and not on cars as investments.
Comparing collector car Insurance: private client coverage vs. middle‑market insurers
| Coverage Feature | Private Client Insurer | Middle-Market Insurer |
|---|---|---|
| Agreed value (no depreciation) | Yes | No; actual cash value |
| Choice of repair shops | Yes | No; options based on cost |
| OEM parts | Yes | No |
| Tailored coverage | Yes; also high limits for liability | No; standard limits |
| Luxury rental cars during repair periods | Yes | No |
| Data sweep if total loss | Yes | No |
| Cherished salvage | Yes | No |
| Concierge service | Yes; personalized support | No; call center contact |
| Bundled offering | Yes | No |
Key ways your advisor can help
- Provide a consultative analysis of your collector car insurance policy to make sure you have the right protection based on the type of car(s) you’ve purchased.
- Conduct annual stewardship reviews to see if your coverage is still appropriate. Perhaps you have purchased additional vehicles? Or your cars have increased in value? In these cases, an advisor can help you adjust coverage to make sure it aligns with your changing needs and situation.
- Work collaboratively with your team of professional advisors, like accountants, estate planning lawyers, and financial planners, so there’s a comprehensive approach to managing your wealth and making sure your insurance is in sync with your entire financial picture.
Collector cars are more than vehicles—they are investments, passions, and extensions of your lifestyle. With the guidance of a knowledgeable advisor, your collector car coverage can evolve alongside your collection, preserving both its value and your confidence. Let’s make sure the protection behind the wheel is as exceptional as the car itself.
Let’s work together to make sure you have the right insurance for your highly valued vehicles.
Learn how proper coverage levels impact your protection in our insight The effects of being over or under insured.
Learn moreThis document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
