He adds that because the Nationwide policy mirrors Hagerty's, Hagerty will handle pricing, underwriting and claims.

“Claims is a critical component to it,” says Hagerty, noting that Hagerty's claims department is built to handle classic cars. He says, for example, partial-damage situations can be complex for collector cars with respect to finding the right replacement parts, an area in which Hagerty has expertise.

A statement from the companies notes that, aside from Hagerty's claims service, Nationwide Classic Car Insurance customers receive flatbed roadside assistance, the Hagerty Price Guide and valuation expertise and a subscription to Hagerty Classic Car magazine.

Hagerty says that, essentially, the company will act as an MGU in the arrangement, while also performing some TPA services on the side.

Ely says Nationwide had provided a product for customers with classic automobiles in the past, but it was an accompaniment to the insurer's standard-auto policy designed to “accommodate some of our members and the vehicles they owned.” That policy, he says, was “not really meeting the needs of the market we wanted to be in.”

As demand grew, “that's when we started looking into how we could meet that need and what's the best method to do that,” he explains.

In a statement, Ely says, “Our friends at Hagerty know classic car insurance better than anyone else, but more importantly, they share the same commitment to their customers as we do. Those factors made the partnership a natural fit.”

Hagerty, meanwhile, says the partnership opens a new world for his company with respect to potential clients. Regarding Nationwide, Hagerty says, “We've been so impressed with them to be open to this [partnership] and to make it happen.”

He says Hagerty works with other carriers and brokers who want access to a specific Hagerty program, but the company has never before entered an arrangement where a partner writes the policy on its own paper. “That is currently the unique feature about the Nationwide relationship,” he says.

Nationwide says its Classic Car Insurance can cover:

• Antique and vintage cars, trucks and motorcycles.
• Modified vehicles.
• Vehicles under restoration.
• Trailers, military vehicles and tractors.