Many of us have our classic Citroëns insured through Hagerty. If so, you may have noticed on your insurance renewal this past year that they have subtly added a $40 charge to make you a premium member of their Hagerty Drivers Club and have you receive their Hagerty Drivers Club magazine.
Most of us have a habit of not questioning their renewal and few make the effort to shop around for a better rate given the brand reputation Hagerty has as being one of the best values in the classic car insurance market. But think about it — How many Hagerty customers have not picked up on that $40 charge?
In their full year 2021 earnings report, issued on March 22, Hagerty stated that Total Revenue grew 24% year-over-year to $619.1 million, written Premiums grew 17% year-over-year to $674.3 million, and their total Active Members grew 13% year-over-year to 2.4 million. That total revenue growth from 17% to 24% was in good part due to the $40 charge slapped on to customers that renewed… most likely close to $70 million that they have made off their customer base!
And as they are now a publicly traded company (NYSE: HGTY since December 3, 2021), this policy addition has been a revenue grab, arguably at their customer’s expense, to make their revenue look attractive to investors. However, judging by their stock price today (at $10.76 USD — its lowest on record) that move has not gone over that well.
Lord knows what they will do next to raise their stock price, but at least for now you can have the $40 charge deleted from your policy upon renewal, if you request to do so. If you are not a Hagerty shareholder, you might want to consider that saving and if you find other rates in your policy have increased, look at other classic car insurance options.