This is a sponsored piece created in partnership with Hagerty.
When it comes to insuring collector cars, Hagerty stands out as a trusted provider, offering innovative insurance solutions tailored to the unique needs of automotive enthusiasts. One of its standout offerings is the Cherished Salvage endorsement, designed to ensure that collector car owners maximize their insurance coverage. But how exactly does Cherished Salvage cater to passionate collectors?
Raymond Doobay (pictured), territory manager for Hagerty Canada, explained that Cherished Salvage is an optional endorsement that allows policyholders to retain ownership of their vehicle in the event of a total loss—while still receiving the full Guaranteed Value™ of the car.
"Collector car owners aren’t looking for standard coverage. They want insurance that reflects the passion they have for their vehicles,” he confirmed.
Unlike traditional insurance, where the salvage value of the car is deducted from the payout, this feature ensures the policyholder can keep their vehicle without any reduction in their settlement. Whether the car is repaired, sold for parts, or kept as a project, the decision rests entirely with the owner.
To understand the value of this endorsement, imagine a scenario where a collector insures their 1999 Mazda Miata for $15,000. In the event of a covered total loss, the owner would receive the full $15,000 from Hagerty less applicable deductible — and still keep the car. What they choose to do with the salvaged vehicle is up to them. Should they decide to rebuild it, Hagerty will reinsure it—an important distinction, as many insurance companies are hesitant to cover rebuilt vehicles.
"We have a lot of clients who have a significant emotional connection to their vehicles. Whether it’s a car handed down from a grandparent or one they’ve always dreamed of owning, these vehicles are more than just machines to them,” said Doobay. “Cherished Salvage allows them to hold onto that sentimental value while still receiving the full payout."
Another key selling point of Hagerty’s Cherished Salvage coverage is its affordability. For most vehicles, the cost of adding this endorsement ranges from just $50 to $60 per year. However, as Doobay explained, the pricing is proportionate to the value of the vehicle, meaning that luxury cars, like Ferraris, may carry a higher premium compared to more accessible models.
Accordingly, the endorsement applies to a wide range of vehicles, as long as they meet the program’s criteria. Whether its a classic muscle car, a European exotic, or the growing collectible JDM vehicles, Hagerty offers coverage on almost any make or model that fits within its guidelines. To qualify for Cherished Salvage, the insured vehicle must be at least 10 years old.
Committed to providing valuable services, the relatively new and widely popular Cherished Salvage endorsement highlights Hagerty's focus on meeting the evolving needs of its customers.
“We had many clients approaching us with the sentiment, ‘I’d really like to keep the car if something happens.’ We listened to our clients and crafted a solution that enables them to preserve their vehicles without sacrificing their insurance payout,” highlighted Doobay.
When discussing concerns about potential fraud within the program, Doobay acknowledged that while it’s a possibility, it’s not a significant concern. "In some ways, Cherished Salvage goes beyond traditional indemnity because clients receive the full payout while retaining their car. However, the true value for our clients lies in keeping their cherished vehicles” he continued.
“The loss was never something they intended to happen. For them, this isn’t about the money; it’s about holding onto something that often carries emotional significance. Our clients are passionate about their cars and Cherished Salvage lets them keep what they love, even when the unexpected happens," Doobay said.
To learn more about how Hagerty’s Cherished Salvage coverage can benefit your clients, click here.
Hagerty Canada, LLC policies are underwritten by Elite Insurance Company, a subsidiary of Aviva Canada Inc. Hagerty determines final risk acceptance. Some coverage not available in all provinces. This is a general description of coverage. All coverage subject to policy provisions, exclusions, and endorsements. Cherished Salvage & Hagerty are registered trademarks of the Hagerty Group LLC, ©2024 The Hagerty Group, LLC. All Rights Reserved.
