Unlike many insurers, Hagerty is not shy about using the word “brand” and attributing much of its success to the strength of its brand, assiduously cultivated over time. “Hagerty’s trusted brand status positions us to monetize our members’ passion for cars,” the company noted in an investor presentation last year. 14 The Hagerty brand encourages policyholders to see themselves first and foremost as members of a club – or what Hagerty calls a “membership, marketplace and media ecosystem for car lovers.” This generates “exceptional brand loyalty with multiple points of monetization.” 15 The Hagerty brand begins with an engaged audience – or, rather, one that is open to engagement. The company calculates that “auto enthusiasts” spend, on average, more than $10,000 a year on their passion. Hagerty offers more than an insurance policy and access to specialist restoration services: it also aims to provide psychological benefits such as “connection and community,” fun, and status. By contrast, the normal auto insurance buyer, characterized by
Hagerty as “the daily driver,” has an exclusive focus on mobility.
Hagerty’s insurance customers are able to enroll in Hagerty’s Drivers’ Club, which currently has almost 1 million members. This multiplies
customer touchpoints to an enormous degree. A major drive to expand membership began in 2019, at which time the company estimated that Drivers Club members could have up to 150 different touchpoints with Hagerty in the course of a year. 16 These included daily updates on the car market, newsletters, the club’s bimonthly magazine, and events. Hagerty is targeting club membership of more than five million by 2025. With a target addressable market in the US of what Hagerty estimates to be 67 million auto enthusiasts and current market penetration of 4.1%, it is clear that the Hagerty brand has room to grow.
14. Hagerty Inc._IP_2023-11-29_English.pdf 15. Ibid 16. https://www.insurancebusinessmag.com/us/news/auto-motor/hagerty-goes-all-in-on-membership-model-for-car-fanatics-160609.aspx
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