Hagerty Insurance, a US-based insurer specialising in rare and collectible vehicles, is considering an expansion into Australia
This development could introduce new competition to a sector long dominated by Shannons Insurance.
Hagerty’s chief executive, McKeel Hagerty, confirmed that the company has received multiple requests to establish operations in Australia, including from within the insurance industry.
“There are a significant number of people who want us to enter Australia,” he said, as reported by Forbes. “Those requests have come from other insurance companies, and the only problem is the resource it would take us to do. But Australia would be a place we eventually get to, I think.”
Both Hagerty and Shannons focus on insuring vehicles that often appreciate in value and require specialist valuation and claims expertise.
This sets them apart from mainstream insurers, which typically cover depreciating vehicles and may lack the necessary knowledge for collectible assets.
Hagerty noted that in the US, large insurance companies frequently collaborate with specialist providers for collectible vehicles.
“The big insurance companies think of themselves as department stores and have to sell everything, but we are a boutique and not a department store,” he told Forbes. “Nine out of the 10 biggest insurance companies in the US partner with us. They are the fiercest competitors, and they all have agreements with us.”
The company’s approach is to manage risks associated with appreciating assets, in contrast to the traditional insurance model focused on depreciating ones.
This allows mainstream insurers to refer clients with unique vehicles to Hagerty while maintaining their broader client base.
Shannons Insurance has been a key player in the Australian collectible car insurance market for more than 40 years.
The company became part of Royal & Sun Alliance Insurance Limited in 2000 and now operates under the Suncorp umbrella.
In 2023, Shannons closed its showrooms in Brisbane, Sydney, and Melbourne as part of its integration into Suncorp’s operations.
Despite these changes, Shannons continues to support over 1,200 automotive events annually and manages the Shannons Club, which it identifies as Australia’s largest online community for motoring enthusiasts.
The potential entry of Hagerty comes as Australian motorists face ongoing increases in comprehensive car insurance premiums.
Canstar’s latest Car Insurance Star Ratings and Awards showed that average annual premiums rose by 5.8% between 2024 and 2025, based on analysis of over 67,000 quotes.
The average comprehensive policy now costs $2,226, up from $2,104 the previous year.
Although the pace of growth has slowed from the previous year’s 30.5% increase, cost pressures remain evident.
Premiums vary significantly by state. Victoria reported the highest average annual cost at $2,940, up 8.3% year-on-year. Western Australia, New South Wales, and Queensland also saw increases, while Tasmania had the lowest average premium at $1,785.
