Classic car insurance pricing hasn't changed much for years. But you can’t say the same for the cars themselves.

In the five years since the recession, McKeel Hagerty, president and CEO of Hagerty, cites value increases of at least 30% for classic cars across the board. “The collector and classic car market is dramatically increasing in visibility and value,” he says.

And while the market is certainly niche, it’s one that can help boost both personal lines business and client retention—especially for the independent agent who’s in tune with his or her community. “Enter the market with eyes wide open,” advises David Spencer, senior vice president at ACE Private Risk Services.

The first step is saying goodbye to insuring classic cars under standard auto policies. “Most people who buy their first collectible car see it as just that—a car,” Spencer says. “But if you’re only driving it on Sundays to the park or on Friday evenings to the local car showcase, then you’re actually not driving it like everybody else drives their car.”

In fact, ACE surveyed more than 600 agents in 2012 and found that 31% think classic car insurance is an area where clients could benefit from higher awareness regarding necessary specialized coverages and saving opportunities. “The agent often gets lulled into, ‘Let me just put it on a regular auto policy—it’s going to be fine, and you’ll only pay one bill,’” Hagerty explains. Offering unique classic car coverage is a “little win that an agent can make by just doing that extra little bit of homework to get those cars properly covered.”

Michael Kevin Farris, Sr., vice president of marketing at Big “I” agency Farris Insurance Agency in Valdese, N.C., which represents companies like Grundy, Hagerty and Classic Collectors, is no stranger to going the extra mile for his classic car clients. A classic car enthusiast himself—he owns a 1970 Cadillac DeVille—who has been writing classic car policies since 1991, Farris warns fellow agents that getting into this line of coverage “sounds simpler than it actually is.”

“Proceed with caution and learn the product,” Farris says. “And you really need to know your competitor’s product as well. Some companies have mileage limitations, others do not. Some of them have deductibles built in mandatory, others do not.”

“There’s definitely a learning curve,” Farris adds. “A car guy has a different vernacular. What’s a ’62 Mustang worth? It’s worth nothing, because they didn’t make them until ’64. I see other agents who have popped into the market who are not fluent in the language. You really need to know how to discuss it and how to value it.”

Since most classic cars stopped depreciating long ago, insuring to value must be a primary focus. “So many of the collector cars an agent currently has insured are undervalued—and many of the prospects they might be targeting may have their cars undervalued as well,” Hagerty says.

Jim Kruse, program director at Condon Skelly Collector Car Insurance, agrees—“especially if you’re talking about quoting owners who have had their cars for quite a few years, and may not be up on the current market values,” he says. “Even if the value of the car isn’t trending upward, if a car gets totaled or they want it repaired, it’s going to cost more money than it ever has before.”

That’s why it’s so important to partner with a carrier that “won’t balk if there’s some damage to the car and it needs to be sent to a specialist,” Spencer says. “If you spent $50,000 on a 1965 Ford Mustang and there’s an expert 400 miles away who’s the only person who knows how to fix it, is your insurer going to say, ‘No, you have to go to a local garage who can hammer that out’?”

“These guys are spending $20,000 on paint,” Harris agrees. “A scratch creates a nightmare of ‘How do I fix this?’”

Companies like Hagerty and Condon Skelly offer research on classic car valuation to agents and clients alike. “The way I view it is car owners—they’re the experts,” Hagerty explains. “They know more about their car than any agent could ever tell them. But if agents can just make themselves aware of some of these tools that help them understand a little bit more about the passion and the market, they can be delivering the best news that client’s heard all year.”

“Passion” is the operative word. Kruse suggests independent agents attend local car shows and meetings of community clubs—because more than any other line of coverage, immersion is essential when it comes to classic car insurance. “It’s not something you can fake,” Spencer warns. “It’s not totally common, so if you’re going to endeavor, make sure you do your homework. Show a genuine interest in the cars and the community of people who collect them.”

That’s another area where insurance agents tend to go wrong—thinking of classic cars as purely an investment for high net-worth individuals. “This is a sport that’s about passion,” Hagerty says. “It’s more about the love of the thing than it is about its value. Somebody who might have a smaller home or might not have quite the annual income—that car is the most important thing to them. Other than their children.”

Jacquelyn Connelly is IA senior editor.