The niche collector car market, filled with enthusiastic,passionate owners of vintage vehicles, muscle cars, sports andexotic motorcars or classic automobiles, often is an untappedmarket for insurance agents. However, even more experienced agentshesitate when it comes to providing insurance for these automobileenthusiasts. But agents don't need to fear getting behind the wheelwhen it comes to serving this market; there are many resources,including carriers and specialty brokers, willing to help themunderstand the coverage options.

Opportunities abound for agents hoping to gain new business orretain customers. There are resources available to help the noviceagent who knows little about collector car coverages and wants toprovide better service to his clients, those who know a little andwant to learn more and those who have collector car clients anddon't want to lose them.

Passion is the driving force

Agents and brokers who regularly work with collector carenthusiasts know what drives these clients: passion. To own acollector vehicle is often the realization of a lifelong dream andan important part of the owner's life. It's more than an investmentfor most. And despite a slow economy, the collector car marketremains relatively stable, even growing in some areas, which isgood for agents looking for new business.

Baby boomers, those born from 1946 to 1964, are helping fuelcollector car purchases, because they often want to own automobilesfrom their teenage years. Online networking also is helping drivethe market through cyber car communities and blogs.

The collector car market is as diverse as the automobiles thatmake up the market. There are vintage vehicles, muscle cars, sportsand exotic automobiles, and classic cars. And the definitionsbehind the categories are often fluid and disputed among theexperts. But there are basic guidelines.

According to www.musclecarclub.com, a muscle car is anintermediate-sized, performance-oriented model, powered by a largeV8 engine, at an affordable price. The Classic Car Club of Americarecognizes classic cars as autos that were built between 1919 and1948, limited in production and quite expensive when new. Vintagevehicles include cars made from 1916 to 1924, when transportationbecame more reliable thanks to improvements such as the developmentof the electric self-starter and increased safety and drivingfeatures.

For information on sports and exotic cars, visitwww.sportscarmarket.com, a one-stop resource for insider'sinformation on collecting, investing, values and trends in thecollector car market.

Agents and brokers also need to become knowledgeable aboutauctions which take place throughout the year for collector carowners. For example, Monterey Auto Week is one of the largest andmost prestigious collector car events. Held each August on theMonterey Peninsula in California, the event has hosted some of thetop sales of the year. This year's total sales, according to the LATimes, were a respectable $116 million, down from last year'sfigure of $130 million. Even in a down economy, sales werestrong.

However, most entry-level collector cars begin between $25,000and $50,000.

Coverage options for collector cars

When it comes to the collector car market, variety is the normand the phrase “beauty is in the eye of the beholder” rings true.The definition of “collector car” often varies. However, forinsurance purposes, to be considered a collector car, it doesn'tnecessarily have to be old, it just has to be appreciating ormaintaining its value. Thus, some new vehicles fit into thecollector car insurance market

A new owner of a collector car might make the mistake ofpurchasing a standard auto policy for the vehicle. Instead, agentsand brokers should advise their clients to purchase a collector carpolicy. Because these cars are often used for pleasure or hobbyuse, carriers are able to offer lower premiums.

However, collector car owners usually require other coveragesand services not in standard auto policies, so agents need to talkwith their carrier about the following:

1 Agreed value coverage that increases with the value ofthe car. The value of a car is determined at the time apolicy is purchased, so if the vehicle suffers a covered totalloss, there's no haggling over value. Furthermore, with propernotice, a policyholder can increase coverage of the vehicle toproper market value anytime prior to a covered loss.

2 Choice of body shop. This is often amust-have feature to any collector auto. Owners want to be able tochoose the facility that will repair the car after a covered loss,since they need mechanics who can work on their unique automobile.Also, insurers should be able to offer referrals to top renovationspecialists and parts dealers when needed.

3 No mileage restrictions. Many owners are veryinvolved in collector car activities, exhibits and parades, so notrestricting mileage becomes very important. Some owners also travelon tours that are 3,000 miles long, so look for policies that donot limit mileage for hobby use.

4 Coverage for newly acquired autos worldwide.Many collectors travel internationally with their cars. On thosetrips, another vehicle can be purchased. A policy thatautomatically extends to any new collector cars bought anywhere inthe world for 30 days from the date of purchase is needed for theseparticular owners.

5 High limits for comprehensive, collision andliability. Whether the owner has one collector car orseveral, many need high limits for these coverages. Some carrierscan also offer liability limits that go up to $50 million.

6 Off-premise coverage. This provides coveragefor fire, explosion and many other perils while the car is in therepair shop.

7 Fair replacement of parts. On collector cars,all parts are not created equal. To maintain a vehicle's value andauthenticity, many owners have the restoration shop seek outelusive parts to replace damaged ones due to a covered loss.Depending upon the vehicle, some parts are no longer available andmust be handmade to original specifications. In the end, the ownerwants the vehicle restored to pre-accident condition andauthenticity, so having this type of coverage available is vital tocollector car enthusiasts.

Other coverages include no deductible, towing the vehicle to theinsured's shop of choice after a covered loss while using theclient's desired transport (tow truck or flat bed) and alsoproviding safety and security inspections of garages and storagefacilities to maximize safety and minimize exposures to theft andother losses.

One last consideration is for agents and brokers to know who isbehind the collector car policy. Does the carrier understand thecomplexities of the collector car market? What is theresponsiveness of the carrier to pay claims in the unfortunateevent of a covered loss? Does the insurer have the financialresources to pay? Research the carrier to make sure you have theimportant information you need to help satisfy the customer andmitigate the risks in the event of a covered loss.

Investors, enthusiasts, collectors, dealers and hobbyists allplay a vital part in the collector car market. Agents and brokerscan become more confident by staying informed on industry trends,by looking at the histories behind the cars, and by attending autoshows and auctions to learn more. Working with insurance carriersand knowing who is behind the policy is key, too. Agents andbrokers can then be confident in their ability to help theirclients secure proper coverages for their collector cars.