The BMW 1M has reached a point where it is no longer just a used performance car. Prices have risen, good examples are becoming increasingly difficult to find and many owners no longer drive them every day. As soon as a car enters this area, regular insurance no longer makes sense. It appreciates the car like any other aging coupe – not something that retains or gains value. That’s why we insured our 1M with Hagerty (no paid advertising), and after going through the process, it’s clear that collector insurance works differently than standard auto insurance in actually important ways.
Agreed Value – the part that really makes a difference
Hagerty used Agreed value protection. You and the insurer decide the value of the car, and when the total value is available, you receive that amount. No depreciated number. Not what an expert finds online. The value is determined in writing in advance. This is important because most traditional policies use this Actual Cash Value – meaning the payout decreases as the car ages. For something like a BMW 1M, where prices are going up instead of down, depreciation-based coverage misses the point.
Where the numbers landed for us
Our car is insured for $76,500 based on Hagerty’s valuation tool and current market movement. The tool is part of the Hagerty Drivers Club membership and shows price trends over the years, making it easier to adjust the insurance value as the market changes. The ability to change the insured value over the medium term, rather than just at renewal, is useful as the market continues to move.
Modified cars don’t cause problems – you just need to document them
A 1M does not have to be in stock to be insured. If the car has a tune, upgraded turbos, suspension, paint, interior changes, or anything else that affects the value, Hagerty will cover the cost – they just want records. Parts and labor can be included in the insured value as long as the labor is billed.
There is track day coverage which is optional
Hagerty provides single-event trackday coverage for non-competitive HPDE events. You don’t need a full policy to purchase and you don’t need to have year-round track coverage if you only attend events occasionally. For anyone who wants to take a 1M to the track a few times a year without committing to a dedicated motorsport driver, this flexibility is helpful. I’ve skipped this for now as I still treat the 1M like a “garage queen”.
When something goes wrong, they try to repair the car, not total it
A big difference to normal insurance is how claims are processed. At Hagerty, the standard approach is to repair — not destroy the car and write a check. OEM parts are used where possible, you can choose the workshop and if you are able to do the work yourself you can be compensated for it. A total loss is treated as the last step, not the first. For a car like a 1M, where originality and VIN continuity are important, this setting is of great importance.
There is also an optional add-on called Cherished Salvage. If the car is totaled and this is stated on the policy, you will receive the full payout and be able to keep the rest of the car without having to buy it back. Not every car needs this, but for something personal or rare it’s a sensible option.
Here you can find out what our policy actually costs
Our annual cost is $1,092, broken down into $649 for collision and $443 for comprehensive, plus a $10,000 deductible. This is not a guideline for everyday use – the price reflects occasional driving and careful handling. An important note: Hagerty requested that our 1M be kept in a closed garage. Outdoor storage would not have been considered in the same way and would likely have resulted in a price change or the car simply not being insured.
A modern benchmark – to see how it compares
To get a better perspective, we also examined the numbers on a modern car: a 2024 Porsche 718 Cayman GTS 4.0, insured to a guaranteed value of $113,000 and stored in a similar closed garage. With a $1,000 deductible, collision coverage was $1,005 per year and non-collision coverage (including glass) was $665. The only fee charged beyond this was a nominal $4 for the law enforcement training assessment.
Its placement next to the 1M highlights the difference between insuring a vehicle that’s established as a collector’s item and one that’s still new enough to feel like a quality road car. Despite a similar garage setup and a similar agreed value structure, covering the Porsche costs more. This contrast makes it easier to understand where the 1M currently sits in the market: not cheap, but clearly treated like a vehicle that has already moved into long-term enthusiast territory, rather than something disposable or easily replaced.
