State Farm, the nation’s largest private passenger vehicle insurer, will collaborate with Hagerty, the leading insurer of classic vehicles beginning in 2022. Classic car owners will be able to bundle their classic car insurance policy with their home and traditional auto insurance with State Farm Classic+.
“We’re thrilled this strategic alliance will position State Farm agents to help customers protect their classic vehicles while giving them an opportunity to connect with a community of car enthusiasts,” said Rand Harbert, State Farm executive vice president and chief agency, sales and marketing officer.
Both companies are already in the automotive insurance business. Hagerty is an automotive lifestyle brand and the leading provider of specialty insurance for classic, vintage and enthusiast vehicles. The company’s insurance program covers collector and classic cars, trucks, SUVs, motorcycles, scooters, boats, motorsport vehicles, high performance track days, modified cars, classic and antique tractors and collector military vehicles.
Hagerty also has other products including Hagerty Drivers Club, Hagerty Media, and Hagerty Drivers Club magazine. With Hagerty DriveShare auto aficionados can rent classic cars directly from the owner, drive them for an agreed length of time and return. The company also offers Garage + Social climate-controlled, dust-free garages in Chicago, Miami, Delray Beach, New York and Toronto.
State Farm provides its customers with property and casualty insurance, life and health insurance, annuities and financial services. Their portfolio also offers collision, comprehensive, rental and ride share insurance along with teen driver coverage, sports car coverage, classic and antique cars and commercial auto insurance.
Bundling can allow customers to save time, money and hassle by combining the purchase of a homeowners, renters, condo or life insurance policy in addition to vehicle insurance. Allowing more bundled services may move the meter for customers. Overall customer satisfaction with auto insurance providers is 835 (on a 1,000-point scale) this year, unchanged from a year ago, according to a J.D. Power survey. This is the first time since 2017 that auto insurance customer satisfaction has not improved year over year.
Nearly half of auto insurance customers say they would switch if they could receive a savings of $200 or less, the survey said. Of those who recently switched because of a premium increase, 57 percent did so for increases of $200 or less.
The State Farm Classic+ policy will be offered through State Farm Classic Insurance Company and may be subject to state regulatory review and approval. This policy will be available to new and existing customers through their State Farm agent.
State Farm Classic+ is expected to be available across the US in 2023.