Hagerty ins. -- This probably won't end well for us

Discussion in 'The BS Topic' started by TTR230, Aug 18, 2021.

  1. TTR230

    TTR230 Veteran Member

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    Just received this email from Hagerty:

    "As you have witnessed in some of our recent news, Hagerty is growing as a company and brand in some truly exciting ways. As part of our growth strategy to ensure our continued success, we are in the process of going public through a merger with Aldel Financial. Aldel Financial is a special purpose acquisition company or SPAC that was created with the intent of merging with a private company like Hagerty to help us go public.

    Outside of the various technicalities what does this mean for Hagerty and you as a Member? It turbocharges our purpose of saving driving and expanding car culture for future generations. Rest assured our commitment to you, our Members, remains at the center of everything we do. You’ll still have the same great insurance, the same great service and the same access to Hagerty’s suite of programs and offerings that help you get the most out of your enthusiast vehicle.

    I invite you to watch the brief message above to learn more about this next step in our exciting journey and what it means for you.

    We wouldn't be where we are today without you, our valued Member. Thank you for sharing the road with Hagerty. We’re so glad you’re on this journey with us."

    I can't help but think that classic car guys will suffer sooner or later because of this. Inevitably, shareholders will take the company where ever they need to either keep it, or make it more profitable. I don't know what the insurance landscape looks like in the states, but up here, we have next to no choice in insurance. We have tons of insurance "companies", but they are all underwritten by a small handful of actual insurance companies.

    Lol ,it's so bad up here, that even my insurance guy, a hotrodder himself, and a kool-aid drinker for the company he represents, uses Hagerty for his classic stuff. Any change in the way Hagerty does business has big consequences...
     
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  2. Lowend

    Lowend Administrator. .a car, a man, a maraca. Staff Member Lifetime Gold Member

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    Honestly - I doubt it will have a ton of effect. The whole insurance industry is a finance bet - and they move money in odd ways all of the time.
     
  3. TTR230

    TTR230 Veteran Member

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    Maybe. Maybe my view of this is colored by the nightmarish Canadian insurance experience. Let's hope.
     
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  4. Twisted_Metal

    Twisted_Metal Administrator Staff Member Lifetime Gold Member

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    Interesting...

    I have a policy through Hagerty but my Proof of Insurance card reads: "Essentia Insurance Company"

    Doesn't that mean it's already underwritten and coverage is actually provided by someone other than Hagerty?
     
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  5. camarochevy1970

    camarochevy1970 Veteran Member

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    Essentia is the underwriter for Hagerty policies. I personally am going to wait this out and see if anything changes before worrying about finding another insurance company
     
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  6. CorkyE

    CorkyE Veteran Member Lifetime Gold Member

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    Same here, Hagerty buy card says a different company.
     
  7. EVILFACE

    EVILFACE Veteran Member

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    Essentia Insurance Company is also on my Hagerty card.
     
  8. 1980RS

    1980RS Veteran Member

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    Just like Grundy when that jacked my rates through the roof, Bye Bye. Went to Condon Skelly, same price for the last 5 years. Hagerty was like out of this world for me when I asked for a quote, no thanks.
     
  9. Lowend

    Lowend Administrator. .a car, a man, a maraca. Staff Member Lifetime Gold Member

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    I don't know anything about insurance in Canada. In the US we have lots of insurance companies that deal with customers, administering claims, and a few large underwriters who actually provide the insurance.
    My understanding is that the real business model has more to do with using premiums as capital for investing n the stock/bond/commodity markets than anything else. Your insurance premium is essentially an interest-free loan (against a claim that may never occur) to an investment bank.

    ... pretty good racket...
     
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  10. BonzoHansen

    BonzoHansen Administrator Lifetime Gold Member

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    its called playing the float, it is certainly part of the overall operational plan. there is a lag between premium payments and claim payouts. Some lines of business have a much longer timeline than others, it can be years. you have to utilize those assets while you have them. w/o the investment aspect insurance would cost even more.
     

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