The BMW 1M has reached a point where it’s no longer just a used performance car. Prices have climbed, good examples are getting harder to find, and many owners aren’t daily-driving them anymore. When a car starts to enter that territory, regular insurance stops making sense. It values the car like any other aging coupe — not something that’s holding or gaining value. That’s why we insured our 1M with Hagerty (not paid advertisement), and after going through the process, it’s clear that collector insurance works differently than a standard auto policy in ways that actually matter.
Agreed Value — The Part That Really Makes a Difference
Hagerty uses Agreed Value Coverage. You and the insurer decide what the car is worth, and if it’s totaled, that’s the number you’re paid. Not a depreciated figure. Not whatever an adjuster finds online. The value is set in writing ahead of time. This matters because most traditional policies use Actual Cash Value — which means the payout drops as the car ages. On something like a BMW 1M, where prices are rising instead of falling, 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 how pricing has trended over the years, which makes it easier to adjust the insured value if the market changes. Being able to change the insured value mid-term, not just at renewal, is useful as the market continues to move.
Modified Cars Don’t Cause Problems — You Just Have to Document Them
A 1M doesn’t have to be stock to be insured. If the car has a tune, upgraded turbos, suspension, paintwork, interior changes, or anything else that affects value, Hagerty will cover it — they just want records. Parts and labor can be included in the insured value as long as the work is accounted for.
Track Day Coverage Exists, and It’s Optional
Hagerty offers single-event track day coverage for non-competitive HPDE events. You don’t need a full policy to buy it, and you don’t have to carry track coverage year-round if you only drive events occasionally. For anyone who wants to take a 1M on track a couple of times per year without committing to a dedicated motorsport rider, that flexibility helps. I skipped this for now since I still treat the 1M like a “garage queen.”
If Something Goes Wrong — They Try to Fix the Car, Not Total It
A big difference from normal insurance is how claims are handled. With Hagerty, the default approach is repair — not totaling the car and cutting a check. OEM parts are used when possible, you can pick the shop, and if you’re capable of doing the work yourself, you can be compensated for it. A total loss is treated as a last step, not the first. For a car like a 1M, where originality and VIN continuity matter, that mindset goes a long way.
There’s also an optional add-on called Cherished Salvage. If the car is totaled and that endorsement is on the policy, you get the full payout and you can keep what’s left of the car without having to buy it back. Not every car needs this, but it’s a sensible option for something personal or rare.
Here’s What Our Policy Actually Costs
Our annual cost is $1,092, split between $649 for collision and $443 for comprehensive, using a $10,000 deductible. It’s not a daily-use policy — the pricing reflects occasional driving and careful ownership. One important note: Hagerty required our 1M to be kept in an enclosed garage. Outdoor storage wouldn’t have qualified the same way, and it likely would have changed pricing, or simply the car would have not been insured.
A Modern Benchmark — To See How It Compares
To get perspective, we also ran numbers on a modern car: a 2024 Porsche 718 Cayman GTS 4.0, insured at a guaranteed value of $113,000 and stored in similar enclosed garaged conditions. With a $1,000 deductible, collision coverage came in at $1,005 per year, and other-than-collision coverage (including glass) was $665. The only fee attached beyond that was a small $4 law-enforcement training assessment.
Putting it next to the 1M highlights the difference between insuring something established as a collectible and something still new enough to feel like a high-value road car. The Porsche costs more to cover despite a similar garage setup and similar agreed-value structure. That contrast makes it easier to understand where the 1M sits in the market now: not cheap, but clearly treated like a vehicle that has already crossed into long-term enthusiast territory rather than something disposable or easily replaced.
