Hagerty auto insurance

Overview

Hagerty is the best-known name in classic and collector car insurance. Based in Traverse City, Michigan, Hagerty, Inc. is a publicly traded company (NYSE: HGTY) that runs an insurance agency and managing general agent for collector and enthusiast vehicles, alongside the Hagerty Drivers Club membership, car events, media and a collector-car marketplace. Hagerty sells and services the policies, but the insurer named on most U.S. policies is Essentia Insurance Company, a subsidiary of Markel Group.

Hagerty is an independent company, not a Markel subsidiary. It is controlled by Hagerty Holding Corp., and Markel owned about 23% of it at the end of 2025. Because Essentia issues the policies, Hagerty's U.S. collector-car premiums are counted in Markel Group, which ranked #27 among U.S. private passenger auto insurers by 2025 direct premiums written according to NAIC market share data. Markel reported $1.03 billion of gross written premium attributable to Hagerty in 2025.

Hagerty itself reported $1.19 billion of total written premium for 2025, about 1.68 million policies in force and 2.82 million insured vehicles at year-end. By June 30, 2026, policies in force had grown to about 1.9 million. About 56% of its 2025 U.S. auto written premium came through independent agents; the rest was sold directly.

History

Frank and Louise Hagerty started the business on April 3, 1984, in the basement of their Traverse City home, selling insurance for classic wooden boats that mainstream insurers would not cover. Louise was the company's first CEO. Requests from boat customers who also owned old cars led Hagerty to write its first collector-car policy in 1991, and cars soon became the bulk of the business. Their children Kim, Tammy and McKeel later ran the company; McKeel Hagerty is chief executive officer and board chairman.

Markel has been tied to Hagerty since January 2013, when it bought Essentia Insurance Company, which already underwrote exclusively for Hagerty. Hagerty launched Hagerty Drivers Club in 2018. In December 2021 it became a public company through a merger with Aldel Financial, a special purpose acquisition company; both Markel and State Farm were investors. Under a 10-year alliance, Hagerty acts as managing general underwriter for State Farm Classic+ policies, sold by State Farm agents since September 2023 and offered in 27 states at the end of 2025.

Hagerty's Bermuda reinsurer, Hagerty Re, took a growing share of the Essentia business over the years, reaching 80% by the end of 2025. Under a fronting arrangement announced in July 2025, Hagerty Re has assumed 100% of the premium and risk on Essentia-issued policies since January 1, 2026, paying Markel an initial fee of 2% of written premium. Essentia remains the insurer on the policy. Hagerty also bought a small insurer, Drivers Edge Insurance Company, which in 2025 began writing Enthusiast+, a product for modern enthusiast cars driven more often than traditional collector cars, starting in Colorado.

Auto insurance coverage

Hagerty insures classic and collector cars, 1980-and-newer collectibles, trucks, Jeeps and SUVs, modified cars, motorcycles, motorsport vehicles, vintage campers, antique tractors, military vehicles and retired commercial vehicles, plus boats.

The core feature is Guaranteed Value, Hagerty's form of agreed value coverage. You and Hagerty agree on the car's value when the policy is written, and after a covered total loss Hagerty pays that full amount, less any deductible and the salvage value if you keep the car, rather than a depreciated actual cash value. Cherished Salvage lets you keep a totaled car and still collect the Guaranteed Value.

Other standard or optional features include $750 of spare parts coverage, 30 days of new purchase coverage for newly bought collector cars up to $50,000, up to $10,000 of auto show medical coverage at car events, vehicle-under-construction coverage that raises the insured value 10% each quarter up to $25,000, and Motorsports Advantage for safety gear, tools and spare parts.

Usage limits are the key trade-off. Policies cover occasional pleasure use, such as shows, club events and recreational drives, and Hagerty says that does not include daily driving to work or school or routine errands.

Hagerty's U.S. disclosures list three underwriters: Essentia Insurance Company and two Nationwide companies, Nationwide Mutual Insurance Company and Nationwide Insurance Company of America. Enthusiast+ is written by Drivers Edge Insurance Company.

Discounts and programs

Hagerty does not publish a standard discount list; pricing reflects the vehicle, its value and limited use. Hagerty Drivers Club costs $70 a year and does not require a Hagerty policy, though most paying members bundle it with their insurance; there were more than 962,000 paying members in mid-2026. Membership includes 24/7 roadside assistance with flatbed or soft-strap towing up to 100 miles per incident, unlimited service calls for lockouts, jump-starts and fuel delivery, a magazine, partner discounts and Hagerty's vehicle valuation tools, which track collector-car prices.

Claims

Claims can be reported online through your Hagerty account or by phone at 800-385-0274, with representatives available seven days a week. Hagerty says it responds to online reports within one business day and pays most claims within 15 days, with same-day glass claims. You choose the repair shop, and Hagerty will pay you to do the repairs yourself. Adjusters have classic-car repair experience, in-house parts specialists help find original, reproduction or used parts, and a network of independent appraisers handles restoration work. Covered total losses are paid at the Guaranteed Value.

Ratings and reputation

As of September 15, 2026, Markel lists Essentia Insurance Company with an A (Excellent) financial strength rating from AM Best and a stable outlook. Hagerty's disclosures say its underwriting companies were rated A (Excellent) or better as of November 2024. Since 2026, Hagerty Re carries all the risk on Essentia-issued policies; Markel's annual report notes Hagerty Re is not rated, though collateral held exceeded what it owed Markel at the end of 2025.

Hagerty is not included in the J.D. Power 2026 U.S. Auto Insurance Study or the 2025 auto claims study. Hagerty reported a policy retention rate of 88.7% for 2025 and 88.2% as of June 30, 2026.

Who it suits

Hagerty suits owners of classic, collector and enthusiast vehicles who drive them occasionally and want an agreed value instead of a depreciated payout, along with claims staff who know old cars. It is not a substitute for regular car insurance on a daily driver. Buyers who also want high limits on modern luxury cars may compare high-net-worth auto insurance: what private client carriers add carriers.

• Strengths: Guaranteed Value with the option to keep a totaled car; choice of repair shop or do-it-yourself repairs; classic-car claims specialists and valuation tools; roadside service with flatbed towing through Drivers Club.
• Weaknesses: Limited to occasional pleasure use; no published discount list; policies are issued by Essentia while Hagerty's unrated Bermuda reinsurer has held all the risk since 2026; not ranked in J.D. Power auto studies.

How to contact Hagerty