Innovative cover helps classic car collectors protect their asset for less
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- Howden’s Private Clients UAE division is transforming the specialist motor insurance market
- With our innovative new product, one collector – with a fleet worth over £3 million – has made a saving of 72%, for more comprehensive cover
- Classic car enthusiasts can now drive their high-value vehicles knowing they’re fully protected
When David McCarthy set up Howden’s Private Clients UAE division earlier this year, his plans were ambitious, but even he didn’t expect to be transforming the specialist motor insurance market quite so quickly.
Classic cars are popular assets in the UAE, but clients told David that they were finding it impossible to get comprehensive insurance at competitive rates. “I was shocked at the terrible deals people were getting,” said David, “so I wanted to understand exactly what was happening in the market.”
David’s research identified that banks and insurers in the UAE consider classic cars to be depreciating assets, so valuations often fall short. What’s more, they consider them high risk, so despite owners storing them securely and driving them much less frequently than their day-to-day vehicles, they were often being charged twice the premium, and only for third-party cover. “Classic cars are old vehicles,” explained David. “They don’t have air conditioning and when temperatures here are at their highest, it’s impossible to drive without it. These cars are locked away for months through the summer season without being on the road, and yet owners were being penalised.”
David was sure there must be a way to provide better cover, while also reducing premium. So, he partnered with Sameh Hafez, an underwriter from Aviva Private Clients, to take a fresh look at how classic car insurance was structured.
Together, they approached some of the largest collectors in the region to explore potential solutions.
One collector, who had a large showroom and a fleet worth US$3 million, was being quoted between 2.5% and 3%, third-party only. David and Sameh worked together to tailor an offering that would give him a guaranteed rate on all his cars based on value. With this new product, David was able to quote 0.7%, fully comprehensive.
The client was so happy with the outcome, he invited David to meet with other major Dubai collectors at a networking event at his showroom. David took Sameh with him, giving the collectors direct access to the insurer and unique insights into what he was looking for and how claims are paid.
Everyone commented on how refreshing it was to talk to people who were genuinely interested in their world, and understood their passion – and who really cared about helping to protect their assets at a reasonable price.
In a market that’s driven by trust and referrals, the benefits have been enormous, both for Howden and for our clients.
Collectors are now guaranteed competitive options for classic car insurance and can drive their high-value vehicles with peace of mind that they have comprehensive cover in place. They are also benefitting from working with a broker that’s part of a larger international team and network, who can protect their classic cars and wider assets, both in Dubai and further afield.
This article is part of the Howden 30 series, where we celebrate three decades of transforming how the world sees risk and insurance by highlighting stories about what we’ve made possible for our clients, our colleagues and our communities.
