McKeel Hagerty can't get enough of cars. And he shares his love through the business that bears his name — offering all sorts of services to people who are nuts about motoring.
Cars are not just a business for Hagerty, CEO of his namesake company, Hagerty. They're his passion. Hagerty bought his first car at age 13. He still has it — along with about 11 others he's picked up along the way.
Because passion drives him, Hagerty takes a very different approach in the auto industry. He's is bent on tapping into car nuts' souls, not just their wallets. His business is a refuge for those who revel in the delight of moving vehicles. And his company is not only a leader in the mundane: insurance policies for collectible vehicles. But also the inspirational: hosting beloved car shows.
"It works because of the passion people have for cars," said Hagerty.
Find Your Passion Like McKeel Hagerty
Hagerty, 54, traces his career back to taking over his parents' Midwest-based insurance agency. He first refocused the business on writing specialty policies for collectible cars.
Hagerty, though, saw a bigger opportunity. He went on to take charge of some major car events. That includes the posh Amelia Concours d'Elegance in Florida which showcases some of the most pristine historic vehicles on the planet.
But also the wacky Concours d'Lemons held annually during this week's Monterey and Pebble Beach Auto Week in California. The event is billed as celebrating automotive "hoopties, rust buckets, misfits and mistakes."
The Amelia appeals to those who love vintage Cords and Rolls-Royces. And the Lemons attracts those with a taste for Ramblers, Pintos or whatever else shows up. One rolling abomination, for instance, was the "termite taxi," a decrepit station wagon largely held together with rolls of duct tape.
Hagerty: Expand Your Vision
Hagerty's view of the business isn't constrained, since he sees his audience broadly as people with a passion for cars. That big-picture thinking opens up a swath of possibilities for new businesses. For example, the company is now offering garages where owners can safely store their classic cars.
And then there's the Hagerty Drivers Club. The club offers discounts to car events, appraisal services and consultations with automotive experts. Think of it as Amazon Prime for car lovers. More than 2.5 million people are members of the Hagerty Drivers Club and other memberships the company offers.
Be A 'Go-Getter'
The key to success is not waiting around until opportunities fall into your lap, Hagerty says. You must find them.
"He's obviously a real go-getter and has a big vision," said Robert Ross, automotive consultant to the Robb Report and partner in the RossMadrid Group, an advertising and marketing agency. Hagerty "wants to roll up every single corner of the collector car universe," Ross said.
All the effort is driving the company's top line. Through growth and acquisitions, the company's revenue hit $619 million last year, up 27% compounded annually from 2018.
To keep the growth going, Hagerty is counting on continuing to build the base of car fanatics.
"They ascribe emotional value to it, passion ... all those things that get attached to cars," he said. "It allows us to sort of enter somebody's life in a way that's more informed, more intimate, more involved in their life than just selling them an insurance policy."
Dave Kinney, a longtime appraiser of classic cars who joined with Hagerty, praises Hagerty for his foresight. "He's such a dynamic personality. He really gets that every business is a people business. He puts faith in his employees. He's a visionary and a leader," Kinney said.
Focus On The Spirit
Hagerty spotted the power of passion in business after visiting athletic shoes and apparel maker Nike as a young man. Nike wasn't about sponsorships or athletes. Rather, it built the business based around the spirit of sports.
"It was like this lightning bolt hit me," Hagerty said. He realized his fledgling insurance company didn't have to be about just trying to hammer the competition. It could be "about the spirit of love of cars," he said.
Hagerty was already primed for that kind of thinking. He was a college philosophy major who earned a master's degree at a Russian Orthodox seminary. He was headed for a doctorate when he decided to return to the family business, now based in Traverse City, Mich. While it might seem like a radical switch, Hagerty says the value of his degrees comes into play every day.
"I am still kind of doing philosophy. I'm just doing it through business," which Hagerty describes as an "intellectual playground" and a classroom.
Cater To Next-Generation Customers
The philosophy of business also led Hagerty to ponder one of the big challenges: How to get younger drivers interested in cars. Boomers embraced owning classic cars, but jitters abound for millennials and Gen Z — many of whom held off even getting their drivers license.
The answer, he said, is that he's come to view the car world as inhabited by "tribes." Tribes are groups that circle around one type of vehicle, brand or era often to the exclusion of others. To get a broader audience, including younger people, engaged, he points to interest in cars like the Mazda Miata, the fun little roadster.
They're not particularly rare and they're still affordable. And they strike a chord in the hearts of those who appreciate them. In another bid for luring young drivers, Hagerty says he keeps an open mind about customizing cars, instead of trying to keep them looking like they came right off the assembly line. As long as people love driving, he loves them back.
"Those are our people," he said.
When Hagerty talks about the appreciation of driving and saving the car collecting concept, it's not viewed as hyperbole by those close to the pastime.
Ross, for instance, notes stamp collecting was once a popular hobby that's gone by the wayside. The fear is that "old guys are dying and automobiles are of no interest to anyone," Ross said. Without enthusiasts to whip up interest, car collecting "could fall into the same traps."
Use A 'Flywheel' To Build Momentum
Managing a growing and far-flung enterprise that can be viewed as having only one things in common — cars — is a challenge. Hagerty came up with a tool that helps unify his businesses and reminds everyone that they all need to spin together — the Hagerty flywheel.
Imagine a giant gear divided up into five sections. There's one section representing Hagerty as an automotive enthusiast brand, one for its membership community, insurance carrier partnerships, "digitally driven thinking" and a focus on personal and professional growth. The idea is these five business objectives all spin together in unison.
It's an apt metaphor, Hagerty says.
"It's kind of hard to get a big, heavy flywheel spinning one time around and a couple of times around, but when you really make them sing, it creates the velocity in the business," he said. "A lot of people build a successful business then go off and try to figure out how to build the next business rather than to figure how to accelerate the one they have."
Remember Business Can Be Fun
Hagerty, of course, knows a thing or two about acceleration.
He bought his first car, a 1967 Porsche, as a bonding project with his dad. He also has acquired other speedsters, like a 1965 Shelby Cobra. And then there's other genres, like a 1985 Land Rover Defender, one of the most capable off-road vehicles ever built.
"It's really been fun. I've been in a car since I was a little boy. I'd restore them with my dad and drive 'em all my life. And, you know, I have a few more now than I did back then," he said. "But I love them."
McKeel Hagerty's Keys
- CEO of Hagerty, a leading provider of insurance and membership services to collectible car enthusiasts.
- Overcame: Limited nature of the auto insurance business he inherited from his parents.
- Lesson: Focusing the business on customers' passion "allows us to sort of enter somebody's life in a way that's more informed, more intimate, more involved in their life than just selling them an insurance policy."
