Vintage cars are awesome. Everybody knows it. The trouble is that your average Joe or Jane Sixpack has no interest in the storage, upkeep and cost of owning a vintage car. That’s where Hagerty Insurance’s DriveShare comes in. It’s a sort of AirBnB for classic cars.
It’s an idea that’s been out there for quite a while, but the companies that tried to get it off the ground were all small startups. The machinery behind the scenes here, in fact, was one of them Classics&Exotics was founded in Massachusetts, and grew as quickly as it could on a small startup budget, but it takes money to make things like this successful.
Hagerty is the biggest name in classic car insurance, and most people who own classic cars at least know the brand, if they aren’t already customers. It acquired Classics&Exotics in a move that further positions Hagerty as something other than just an insurance company.
With DriveShare, you input your location and you’re presented with a number of cars in your area that owners have made available for use. Currently, the inventory is pretty limited, but the service is just getting started.
The benefit for classic car owners is it allows them to earn money as they share the car, similar to any other car-sharing service. Like any other sharing service, owners set the prices, allow the mileage they’re willing to have the car driven, review the renters and approve the entire process. DriveShare takes 35% of the rental fee.
The insurance portion of the equation is really what has made something like DriveShare impossible in the past, and makes that 35% cut worth it all day long. Every vehicle rented through DriveShare includes a commercial auto policy that provides liability coverage for both bodily injury and property damage for the rental period. Hagerty guarantees full replacement if something catastrophic happens, and like their standard insurance policies, the company pays on the agreed value up to $1 million, rather than a Blue Book value can be much less than the car is worth.
We spoke to Jonathan Klinger at Hagerty and he explained that the policy also offers protections not covered in typical auto policies. For example, if you’ve taken money for your car to be a part of a wedding and something happens to it, a typical auto policy doesn’t cover it because it happened while the car was being used for business. Same if your car has been used as a background vehicle in a movie.
The insurance policy that comes as part of the DriveShare agreement covers business usage like this, since by its very nature, renting a car to someone else is “business use.”
The program also protects car owners with roadside assistance if something happens to the car when it’s being rented. It provides flatbed towing 24/7, as well as less extensive rescue operations like emergency fuel service, lockout, jumpstart and tire change services.
Obviously, you’re not going to list the exquisitely restored, one-of-one classic you’ve owned since high school, but for classic car owners with driver quality cars, it’s a great way to make some money toward improvements or upgrades.
For renters, it makes the dream of driving a vintage car a whole lot easier and less expensive. Planning a trip somewhere? Why not spend a day in a classic car you’ve always wanted instead of some penalty box rental?
“DriveShare gives people an easy way to get behind the wheel of cars they’ve always wanted to drive,” said McKeel Hagerty, CEO of Hagerty. “Our goal is to provide a common platform that connects enthusiasts and owners to expand the community of people who love cars.”
“I started this company so people could try out these amazing vehicles and owners could make a little money to defray the cost of ownership, and that’s still the mission today for DriveShare,” said Classics&Exotics founder Peter Zawadzki, who has joined Hagerty as director of DriveShare. “It’s a great way to bring more people into the hobby. What we’ve seen is that people who rent these cars often become classic car owners themselves.”
DriveShare just launched, so currently, the inventory may be thin in some areas, but as more and more classic car owners list their cars, it will fill out across the country. For more information, visit DriveShare.