For car enthusiasts, their collections are worth far more than their dollar value. Many are irreplaceable – so getting the right insurance is crucial. 

So, what are the main risks and considerations to be aware of for clients who own a car collection?

Storage risks

One key difference between insuring collectibles and individual cars is location of the cars—especially in Australia, where the risk of flood and bushfire exposure is increasingly a risk factor. 

"Some collectors may have well over $10 million worth of cars, all sitting in one location," says Tom Hall, Senior Technical Underwriter at the prestige and collectible car insurance underwriting agency Dawes Motor Insurance. 

"Clients need to be selective about where they keep the cars and how they store them. When Dawes arranges insurance for large car collections, the amount of information we may ask for increases accordingly."

Tom says insurance brokers need to be proactive by obtaining complete information on their client's background, how they built the car collection, and how the car collection is stored before taking it to market.

"How are the cars parked, and what is the security like? Is there a flood risk? Do they have a key safe? Have they got a custom-built enclosure for the car?" Tom asks.

Owners with large car collections often buy commercial properties in which to store the cars or keep them at specialty car storage facilities. 

"If they're keeping them away from their house, we often request building reports to confirm the construction and security details and details on how the cars are parked and stored. That may include monitored alarms, fire provisions, bollards – all the correct precautions to help make sure their assets are protected," says Tom.

Fire risk is one of the largest concerns for large collections so having adequate provisions in place is a must. Dawes also suggests owners use trickle chargers from reputable brands – and ensure the electrics in the storage building are up to scratch.

"We've had problems in the past where cars have gone up in flames from an electrical fault in the building," he says.

A holistic approach

A car enthusiast with 10 or more cars can't drive them all at once. In fact, in Australia, the average Ferrari covers less than 1,000 kilometres each year. 

That's why Dawes considers car collections holistically rather than as a single-risk situation.

 "If you've got 50 cars and there's only one of you, it's a bit hard to drive them all the time," says Tom.

With this in mind, Dawes can arrange insurance for an unlimited number of cars under one policy. 

"We can then take cars off or add as needed," says Tom. "It's unnecessary to start a new policy every time the owner buys a car, which is helpful to both brokers and customers.”

Dawes recognises that collectors of prestige, exotic, vintage and classic cars prefer to use specialist repairers.

"We can help car owners choose the right repairer," Tom says. The Dawes motor insurance policies also offer automatic glass cover and $5,000 for emergency accommodation and repairs."

The value of experience

Dawes underwriters are all car enthusiasts who are highly experienced at insuring car collections.

"We've insured many of our collectors for 20 years – we know them and their cars," says Tom.

Visit the Dawes website or call the team at 1300 188 299 to find out how they can help you protect your clients' valuable collections.

Dawes Underwriting Australia Pty Ltd t/as Dawes Motor Insurance (ABN 18 050 289 506, AR No. 342982) (‘Dawes’) is an Authorised Representative of SGUAS Pty Limited (ABN 15 096 726 895, AFSL 234437) (‘SGUAS’) and acts for the insurer, Allianz Australia Insurance Limited (ABN 15 000 122 850, AFSL 234708) (‘Allianz’). Consider the relevant Product Disclosure Statement and Target Market Determination available by contacting Dawes on 1300 188 288 or visiting www.dawes.com.au, before deciding if it is right for you. This article has been prepared by Dawes. Any advice here does not take into account individual objectives, financial situation or needs. Terms, conditions, limits and exclusions apply. 

Information contained in this article is accurate as at 13 January 2025 and may be subject to change. In some cases information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way. Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Dawes, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.