Cruising with Coverage: Classic Car Insurance in The US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) July 26, 2013 -- The Classic Car Insurance industry provides liability, collision, bodily injury and other types of automobile insurance for classic and antique cars, including hot rods, motorcycles, vintage military transports, and other rare and high-end cars built more than 25 years ago. “The industry experienced its share of wear and tear during the recession, which shattered investor confidence, forcing many classic car owners and potential owners to sell or delay their purchases because of mounting financial pressures,” IBISWorld industry analyst Sean Windle says. As owners sold or garaged their vehicles and canceled their related insurance policies, industry revenue fell by double digits in 2008 and 2009.
“Fortunately for the Classic Car Insurance industry, improving economic conditions starting in 2010 resulted in overall positive growth between 2008 and 2013,” Windle says. During this period, industry revenue is expected to increase at an annualized rate of 0.2%. Much of this growth took place in 2010 and 2012, when revenue climbed 5.2% and 3.5%, respectively. In 2013, revenue is projected to increase 3.8% to $3.4 billion.
This industry has a low level of market share concentration. Currently, the top four players are State Farm, Liberty Mutual Group Inc., Allstate Insurance Company and Hagerty Insurance. Market share concentration has been increasing in the five years to 2013 as the number of classic car insurers has fallen. Due to the recession, many operators had to lower their premiums, driving some operators out of business. Market concentration is estimated to remain relatively stable in the five years to 2018 as the economy continues to improve, helping boost demand for classic cars and classic car insurance.
Revenue growth is expected to accelerate in the five years to 2018; however, this growth will be slimmer compared to the gains experienced prior to the recession. Despite stronger demand from the baby-boomer generation and other consumer groups, questions and concerns about the effects of federal sequestration, interest rates and other economic conditions will raise investor uncertainty during the period. Nevertheless, IBISWorld expects that the industry will grow in the next five years. For more information, visit IBISWorld’s Classic Car Insurance in the US industry report page.
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IBISWorld industry Report Key Topics
This industry underwrites (i.e. assuming the risk and assigning premiums) classic car insurance policies, including liability, bodily injury, collision and comprehensive coverage.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, 310-866-5042, [email protected]
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