Classic and collector car insurer OpenRoad says that because standard auto insurers continue to recover from unprecedented losses experienced during COVID-19 due to spikes in catastrophic insurance claims and increased vehicle repair costs, less risk-prone collector car owners are suffering the consequences.

While “Bundle and Save” programs have provided some relief for daily drivers, many collector car owners are paying more than they should according to latest insurer in the collector car market.

The Consumer Price Index (CPI) saw the cost of auto insurance rise 51 percent over the past 3 years, six times faster than inflation overall.

The spike in auto insurance costs can be blamed on an increase in reckless driving and a shortage of parts and labor, both the result of the pandemic.

Collectors face a double inequity, according to OpenRoad. “Not only are they statistically less likely to get into an accident or file a claim, but standard auto insurers often don’t offer proportionally lower rates for owners who typically drive their vintage vehicles fewer than 5,000 miles annually – compared to the average 12,000+ miles driven in other vehicles.”

In effect, auto collectors and good drivers have been quietly subsidizing the catastrophic losses felt by insurance companies,” OpenRoad said.

Drivers have been persuaded that bundling multiple insurance products like auto and home can reduce rates, but these bundling practices often cause coverage gaps for owners of collector vehicles, the specialty insurer added.

“Of the 40 million+ collector vehicles in the United States, the majority are insured by standard auto insurance generalists. This could be a costly decision as the typical standard insurance program does not include coverages built for the specific needs of these vehicles or their owners,” said Richard Hutchinson, chief executive officer of Dallas-based OpenRoad Insurance. “Our message to auto collectors and agents or brokers serving this community: consider unbundling and saving on more appropriate and comprehensive coverage.”Not only are auto collectors likely paying more than they should given their reduced risk profile, the coverage they do buy could prove to be radically insufficient. This unfortunate truth will only be discovered when they actually need to make a claim.

Even for minor repairs, standard auto insurance programs do not guarantee coverage for original parts or that their approved body shop network has the expertise necessary to repair these types of vehicles.

OpenRoad said these coverage gaps and claims handling practices can put the authenticity and value of a collector vehicle at risk.

“Many collector vehicle owners don’t realize that their standard auto coverage is based on a depreciated market value,” said Justin Moreno, OpenRoad’s chief marketing & communications officer. “That may work well for daily drivers but not for a classic car or truck. These vehicles require coverage that considers their true replacement cost, assigning a market value that takes into account their condition as well as the owner’s investments. We provide that as well as expert claims handling and many other protections that are better suited to the needs of the collector car community.”

Launching this past summer, OpenRoad’s program was built by a seasoned team of collector car and insurance industry experts. Coverage is available in 16 states with plans to expand to 30 states by the summer of 2025.