The car-collecting hobby is forever changing. Street rods and custom cars are growing in popularity as car hobbyists enhance vehicles for safety, comfort and performance. Each year, more car lovers are spending time and money making these types of modifications either themselves or through professional restoration shops. Retail sales of restoration products grew by 81 percent from 1996-2006, according to the Specialty Equipment Market Association (SEMA). What’s more, modified car lovers are an attractive market for insurance professionals: SEMA research shows the average household income of modified-car owners was more than $96,000 (more than 2.5 times the national per capita income).

Typical modifications include safety features such as power steering and brakes; comfort features such as modern seats, air conditioning and stereo equipment; and performance changes such as engine and transmission improvements. These modifications are important to enthusiasts who prefer to drive, not just show, their vehicle. Aside from offering a more comfortable ride, they can also increase the fuel economy and lower emissions. Also, depending on the vehicle, some of these modifications can drastically increase the selling price.

With the modified segment of the industry booming, American Collectors is excited to announce a new program which offers lower rates for street rods, custom cars and modified vehicles, including “restomods” and “restorods.” This new program is available nationwide and also provides policyholders with flexible usage & mileage options.

How can your agency capitalize on this growing trend? Check out our article about growing your business for tips to break into the market. Agents can access easy-to-use online tools for quoting and submitting policies via password-protected accounts. Selling to street rod and custom enthusiasts will be easier than ever!

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