What’s next for the collector car market? Here are four key trends insurance agents need to know for 2020 and beyond.
The collector car market continues to evolve and change. The market was long dominated by silent generation and baby boomer collectors, who rapidly drove up the value of collector cars while amassing substantial private collections. Generation X collectors, now in their 40s and 50s, added their own notions of what made cars desirable or collectible.
What’s coming next for the collector car market? Here are four key trends for 2020 and beyond:
1) The concept of what’s collectible is shifting. Millennials are the largest generation and their ideas will redefine the collector car market again. The oldest millennials are approaching their prime earning years and they’re adding vehicles they love from the ‘90s and 2000s. Predictably, Mustangs, Camaros and Firebirds remain popular.
But millennials are also bringing a love of SUVs, like the Jeep Cherokee and the Toyota FJ Cruiser. Sporty imports like the Acura Integra and the Toyota Supra along with roadsters, like the Mazda Miata and Honda S2000, are also gaining in popularity and value.
2) More collectible cars will become daily drivers. In the past, collector cars were garage-kept, and pulled out only on a sunny day for a car show. Conversely, millennial collectors want to drive their cars. They are pragmatic and less likely to splurge on a “luxury” that sits in the garage. They value protecting the vehicle they love, but they’ll also want to enjoy their collector cars. But finding agreed value coverage for daily drivers can be a challenge.
3) New classics are born every day. New vehicles are coming to market that will become the collector cars of tomorrow. Limited production vehicles like the mid-engine Corvette Stingray, the Dodge Hellcat and the GT500 Shelby Mustang are all collectible today and will only grow in value over time.
Some of these modern classics will become daily drivers, but others will be saved as a future investment. Because they’re brand new, finding agreed-value protection for these vehicles can also be a challenge.
4) Prices are shifting. While some vehicles, like the iconic ’57 Chevy Bel Air, will never go out of style, boomer collectors’ children aren’t interested in taking over their collections, which means many are coming to market. As they sell, prices will moderate, and even decrease. Conversely, vehicles that have been extremely affordable in the past are starting to appreciate rapidly. More than ever, it’s critical to insure collector cars with agreed value.
Safeco is here to help. We insure collector cars at 100% agreed value and have guaranteed flat-bed towing. We offer valuable extras, like diminishing deductibles, personal contents coverage and a convenient customer app.
Plus, your customers automatically have coverage for newly purchased collector cars. We insure many tough-to-place vehicles, like daily drivers and modern classics. With Safeco, you can quote and issue in under 10 minutes, you have $100,000 of binding authority and you have a dedicated specialty underwriter you can call.