While an unabashed love of classic cars is what really drivescollectors to spend millions or even tens of millions on the hobby,the purchases—in addition to providing ego boosts and adrenalinerushes—often prove to be good investments as well.

Indeed, given the low returns on more traditional investmentplays, some underwriters report collector cars are becoming evenmore popular these days as buyers view them as a way to park moneyin a relatively safe investment—while also getting a lot moreenjoyment than what a stock or bond provides.

“We're the largest underwriter of fine-art collections in theU.S., and one of the trends we've seen is that when the parentspass, the children are liquidating the art collections andredirecting [the dollars] to other collectibles,  such asclassic cars,” says Ron Fiamma, vice president and director ofprivate collections for the Private Client Group division ofChartis.

Adds Donald Soss, a vice president in Fireman's Fund's PrivateWealth group: “Wealthy people want to put their money in stableassets, and we're not seeing a lot of devaluation in these cars,especially if they are not driven. It's a hot market right now—notleast because the HAGI (Historic Automobile Group International)classic-car indices have outperformed the S&P 500 for the lastsix years.”

Recent auction numbers demonstrate the growth: In January at theBarrett-Jackson auction in Scottsdale, Ariz., one of the hobby'sbiggest buying events, the company generated more than $92 millionin gross sales—a 32 percent increase over 2011.

European sports cars from the 1950s and '60s are still seen asthe gold standard among investors; interest in American muscle carsfrom the '60s—which had been soaring in recent years—has flattenedout.

Buying trends agents and insurers should be alert to: Pickuptrucks from the 1950s and '60s are starting to garner moreattention, especially from entry-level buyers, notes McKeelHagerty, CEO of Hagerty Insurance. “We're also seeing increasinginterest in early Japanese collector cars and British bikes likeTriumphs and Nortons.

“We do espouse that cars are a good investment; if you canafford to buy a Mercedes Gullwing, it's pretty much guaranteedyou're not going to lose money,” adds Hagerty. “But I don't knowtoo many people who collect who say they do it for the valuations;it's about the passion and fun.”