The Modified Vehicle Market: What Brokers Should Know

A classic modified vehicle.

With enough work, these cars become classified as “modified vehicles” — at least from an insurance standpoint — with guidelines and qualifications that differ from their “stock” siblings.

Are they kit cars? Replicas? Street rods? As a busy broker, knowing the ins and outs of every modified vehicle segment can be a challenge. But providing great coverage certainly shouldn’t. So here’s a look at today’s evolving modified market and why these policies are ideal to write with Hagerty.

Modified vehicle enthusiasts are in it for life

Not surprisingly, most modified vehicle owners really love their cars. They’re highly engaged in the automotive hobby and consider their vehicles to be expressions and extensions of themselves.

With an average age of 59 years, these individuals skew a bit younger than the average collector. They also drive about 500 kilometres less per year.

And despite an average household income slightly lower than stock vehicle owners, modified vehicle enthusiasts own more collector vehicles and have a higher average total insurable value ($48K vs $35K). They also spend about twice as many hours working on their vehicles as their stock owner counterparts.

When they’re not tinkering in the garage, they’re probably at a local automotive event. 83% say they attend car shows like World of Wheels and 39% participate in informal enthusiast groups related to the hobby. Hint: these events are some of the best places to prospect for collector vehicle business.

Performance, safety, and appearance are the three most modified attributes among modified cars and trucks. Speed is a close fourth. The degree to which the vehicle is modified, the types of modifications themselves, and its usage will determine whether it fits the Hagerty program.

And if you’re not sure a vehicle is modified, just ask the owner. You’ll have a good idea of whether a vehicle should be classified as modified by addressing these specific attributes:

  • Is the vehicle a kit car or replica?
  • Are there significant performance increases such as an added blower, supercharger, or turbocharger?
  • Is the paint job custom and worth over $10,000?
  • Are there structural alterations to the body/chassis/frame?
  • Is it outfitted with hydraulics or nitrous?

These vehicles are typically unlike any other, and owners will need coverage that reflects their originality.

Given the size of the vehicle market and the enthusiasm of their owners, you can bet these lifelong hobbyists have additional assets to protect as well.

Hagerty protects modified vehicles of all ages

There’s opportunity to write modified vehicle policies nearly everywhere you look. From 1930s hot rods to 1990s custom imports all the way to today’s brand-new American muscle cars.

When quoting these vehicles, especially those with expensive modifications, Guaranteed Value™ policies through Hagerty become a powerful selling tool.* Your client will want to protect their pride and joy for its true market value replacement cost — a guaranteed amount agreed to by.

And just like your client’s vehicles, your client’s coverage can be modified, too. Optional customizations include:

  • Cherished Salvage®

    In the unfortunate event of a covered total loss, your client keeps their modified vehicle and still receives its Guaranteed Value. The cost is just 15% of the vehicle’s physical damage premiums**

  • Vehicle Under Construction

    Because the process of restoring and/or modifying a collector vehicle is a significant part of the hobby, we’re happy to offer coverage for vehicles “actively” being built.

And one last thing – modified vehicle owners report engaging with automotive media around 17 hours per week! This makes them prime targets for Hagerty Drivers Club®, the ultimate community for car lovers.+ Membership gives them full access to the original automotive content and the members-only experiences they love. Member discounts can also help them save money on car stuff, so they can buy more car stuff, like custom rims, tires, and paint. That’s a win-win.

Find more information by visiting the Hagerty Broker Business CentreTake a spin through our products and grab our latest information materials. You can also call us at 800-747-5348 or visit to talk values and coverage. We’re here with dedicated support 7 days a week.