The Jalopy Journal
Discussion in 'The Hokey Ass Message Board' started by 24 Dodge, Jan 11, 2022.
Has anybody heard that Statefarm Insurance acquired Hagerty Insurance?
State Farm is absolutely EVIL and has been for at least 50 yrs
I had not but have all my old cars covered through State Farm....as well as my new ones. I have a great agent and have no issues.....
I highly doubt that is true. Hagerty is big, a couple of weeks ago they went public, (NYSE). In the past year or so they have purchased at least three major Concours d’Elegance events (Concours of America, Greenwich Concours, and Amelia Island Concours) plus at least one “Collector Car Garage” ( in Chicago)
Allstate was and still may be part of Sears Roebuck and we all know where they have gone in the last few years.
Found this :
The December 1 deal that got Hagerty listed is a merger with Aldel Financial Inc., a special purpose acquisition company, commonly known as a SPAC. The merger included a $704 million investment led by State Farm and Markel Corporation, but including other parties.Dec 6, 2021
I think what's happening here is that the major auto insurers are trying to expand their customer base by getting into the collector car coverage by either buying outright or becoming "associated" with some of the established collector companies.
My Farmers agent also did my Hagerty policy, State Farm did not last year. I was notified by our old State Farm agent that they will do Hagerty as of 2022 but I don't think State Farm owns Hagerty. When I went to get my car registered the DMV asked me who was it insured with and I said Hagerty. The lady said NO that is not a company? So I got my Hagerty insurance card and on the back it said Essentia ( think it is spelled right?) and that's who she put on the paperwork, said Hagerty just sells insurance from someone else that underwrites them. So who knows who owns who anymore.
Sure hope the Hoffman group doesn't want to expand...!
I am quite sure the net result won’t be higher rates and less service…….
My State Farm agent was good but they would only insure one of my cars as they considered the others "projects" and said they needed to be finished vehicles, main problem was paint jobs. I explained that at least one of my cars (F100) will never be painted but they wouldn't budge, said it was too hard to establish a value unless the vehicle was done. That's how I ended up at Hagerty.
Why do you say this?
Allstate was spun off of Sears Roebuck in 1993.
And it looks to me like Hagerty and State Farm are "collaborating" according to press releases
Hagerty went public. The way they were able to do that was a merger with SPAC and a large $704 Million investment from State Farm. According to this that constitutes a 64.6% A share stake in the company.
So State Farm appear to now be the majority stake holder in the company.
64.6% is called a controlling stake. So yes State Farm owns Hagerty
That would be a catastrophic.
I switched from Grundy to Heacock Classic insurance for my avatar and my Wife’s 50 Chevy convertible last year. No complaints with Grundy at all but Heacock rates were half for the same agreed coverage. Their underwriter is rated A+.
Read down further. State Farm owns 17.2%.
From McKeel Hagerty.
Hagerty did not sell. We have changed our ownership structure. We’re a much larger company now,” CEO McKeel Hagerty said Wednesday.
“The Hagerty family is still the majority owner and also in control of the business. Brand stays the same, management stays the same, I will remain as CEO. It’s not a sale of the company. It’s a growing-up and diversification of our shareholders.”
Thanks for info, and clarifying what is happening - should benefit the automotive world
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