The Risks of Driving for Uber or Lyft

Driving Uber LyftUber and Lyft are ridesharing services that have quickly gained popularity. At this point, they are available in most parts of the country, especially metropolitan areas. With a few taps on your phone, you can call a driver to your location. Or, sign up through the same app to become a paid driver yourself.

Many people have turned to these services as drivers for extra income because of its ease-of-use. Just sign into the app and you’re in business. You can work wherever you want, whenever you want, even if it’s just for a few minutes. It can be a convenient way to make a few bucks in the evenings or weekend.

Unfortunately, it’s not that simple. While many people are lauding Uber and Lyft for disrupting the traditional taxi model and giving people an easy employment option, working for either of these services comes with some risk worth considering.

Financial risks
As a ridesharing driver, you are an independent contractor, not an employee of the parent company. Any losses or expenses you incur are your problem. Both services compensate drivers for damage to vehicles caused by passengers, but standard wear and tear, fuel, tolls, maintenance, taxes, and insurance are costs of the job. While injury is unlikely, you are not eligible for worker’s compensation insurance.

Since you are technically working while you drive for Uber or Lyft, standard car insurance won’t cover you if you get into an accident. Most drivers are taking this risk.

Furthermore, the job isn’t as lucrative as it used to be. Both services have increased their percentages of the last few years. Uber and Lyft now takes 20% off the top, which makes it difficult for many drivers to handle the expenses.
Uber says you can make about $25/hour. Lyft reports $35/hour. The truth, however, is far lower once you deduct expenses. The amount you can earn varies widely depending on the area, but at the end of the day, most drivers make about $9-15/hour.

Lyft’s app has functionality for passengers to tip drivers, which can improve the hourly rate significantly. Uber, however, says they want “riders and drivers to know for sure what they would pay or earn on each trip — without the uncertainty of tipping.”

Safety risks
Originally, ridesharing companies pitched their product as a safer alternative to taxis. Using social media logins, driver and passenger identities were public, making assault or crime less likely. Rating systems were designed to penalize people who behaved inappropriately.

But the rapid growth of the industry has made these basic safety features (and they are basic) less effective. Ridesharing services have to recruit new drivers constantly. A reputation-based system doesn’t work when you’re likely to never see that passenger again anyway.

Neither ridesharing app provides safety training for drivers (as this would force them to classify drivers as employees). Both services provide some basic tips for drivers to look out for themselves, but this information is sparse and unhelpful in a dangerous encounter.

OSHA reports that “data indicates that annual homicide rates for taxi drivers (and chauffeurs) from 1998 to 2007 ranged from 9 per 100,000 workers to 19. During that period the rate for all workers was at or below 0.5 per 100,000 workers.” This means that taxi drivers are killed 21 and 33 times higher than the national average.

Presumably, that’s less of a concern for ridesharing drivers because there is no cash exchange. You’ve probably seen sensational headlines, but that’s only because the industry is new and people are adjusting. The real danger lies in motor accidents, of which there are substantially more for ridesharing drivers than the average.

Finally, the background check system is weak. Lyft performs a background check on all drivers. Uber checks the background in only certain states. But there are reports in both apps of people passing the background check who know they shouldn’t.

Decide for yourself
It has become clear the rideshare driving isn’t the “way of the future” it was marketed to be. It’s a reasonable job considering its low barrier to entry, but it’s not something to build a future around. The safety risks aside, driving for Uber or Lyft doesn’t offer a strong financial incentive anymore.

Karen Consiglio
Commercial Claims
kconsiglio@srfm.com

Karen-Consiglio

Prepping Your Vehicle for Winter

Prepping Your Vehicle for WinterAs the temperature drops and the skies turn gray, natures’ animals prepare for the great hibernation that is winter. Squirrels stockpile nuts, bears fatten themselves up, birds fly south, and us humans head to the store and buy a new winter coat. For those of us with opposable thumbs, we also have to prepare other things for winter that are distinctly human…like our automobiles.

Owning a car, which most of us do, comes with the responsibility of regular maintenance and upkeep and for those of us living in colder climates, we have the added task of prepping our automobiles for winter. So as the cold front approaches, what do you need to do to get your car ready for the change of season?

Getting your car mechanically ready for the cold:

  • Fluids: Fluids are the life blood of your vehicle and as the temperature drops, the fluids in our vehicle respond. Frozen or broken down fluids are generally not good for a car. It’s critical to ensure that the fluids we’re using in our car can stand up to the freezing temperatures of winter. Specifically:
  • Engine Coolant/Anti-Freeze:  A coolant system flush and new radiator fluid is a good idea going into winter, and make sure you have anti-freeze in your radiator that’s rated for sub zero temperatures.
  • Engine Oil: Most engine oil these days are rated for two temperature ranges (10W 30 for example). The numbers signify the weight or viscosity of the oil. The more viscous the oil, the more easily it flows through the engine. With engine oil, lower numbers means the oil flows more easily. In winter you want a lower weight oil so the cold doesn’t thicken the oil and impede the flow through the engine. Be sure you have some 10W in your oil weight. Did you know that the “w” in 10w30 stands for winter? It does.
  • Transmission Fluid: Typically, the transmission fluid in your vehicle is rated for the cold but heading into winter is a good time to have a mechanic check the fluid, flush it out and replace it if needed.
  • Windshield Wiper Fluid: While it’s not critical to the operation of your vehicle, wiper fluid if not rated for the cold can freeze up and cause damage to the wiper fluid reservoir.
  • Tires: The obvious item to prep for winter is your tires. Have your tires inspected by a professional mechanic to ensure that there is sufficient tread to get you through the snowy days. If your area sees a lot of snow, you may want to consider putting on tires with snow specific tread. These tires have a more aggressive tread pattern and will reduce your gas mileage so consider the trade off. Here are some tips from the pros on winter tires.
  • Heater: None of us want to be stuck in the dead of winter with no heater in the car. Have your mechanic check your heater operation and make sure you’re ready for the chill.

 Preparing to drive and store your car in the cold:

Once your vehicle is mechanically ready for the cold weather, it’s time to prep yourself as a driver for the cold days ahead. Here are some things you can do to make your winter driving life easier.

  • Keep an emergency kit in the car: You never know when your car may break down or get stuck in the snow leaving you stranded in the cold. Act like a boy scout and be prepared with a winter emergency car kit with items like flares, a camping shovel for digging out of snow, and some cold weather gear.
  • Get an Ice scraper/Snow brush: Duh. I know, it’s obvious to have one but it’s also good to invest in a good quality scraper.
  • Get a car cover: If you’re not into scraping and brushing snow off the car in the morning, a car cover could make your life more enjoyable. A couple of minutes to put a cover on your car in the evening can save you several minutes of scraping ice and brushing snow in the morning. And who wants to do that on a cold winter morning when you’re late for work? You can purchase a car cover online that is made specifically for your car.

Here’s a tip: Always make sure that all of the snow is completely removed from your vehicle before driving. I know, you just want to get to work, but when you leave snow on your car, it blows off while you drive blinding drivers in cars behind you in a snow drift, which is unsafe, and not too friendly.

As winter approaches, do these few things to get you and your car ready for the cold and it’s going to make your life a whole lot easier. At Sinclair, we’re always preparing for the future and the unforeseen. We are Risk Management Specialists ready to handle whatever life brings your way.

Stephen Davis
sdavis@srfm.com
Sinclair Risk& Financial Management

Prepping Your Vehicle for Winter

Auto Insurance: Why You Need a Specialty Policy for Your Collector Car

Exotic Car Insurance Why Do Exotic Autos Need Specialized InsuranceCollector cars aren’t used like typical vehicles. They’re often driven less and cared for better. They don’t commute to work, but they spend weekends parked at car shows. You need a collector car auto insurance policy that meets those specific needs.

Many collectors in the United States make the mistake of insuring their collector vehicles through big-name insurance companies. This costs them more and fails to provide adequate coverage. Specialty insurance policies provide significant advantages for collector cars.

Your collector car isn’t like the standard models

When you sign up for traditional insurance, you select a few options from basic categories like make, model, and condition. But that doesn’t tell the whole story of a collector car.

Collector vehicles (and exotic cars) are tricky to value. They may have a list of improvements, modifications and custom parts. A specialty insurer has to ask about what’s been modified, how much has been invested, the parts that are used, etc. Keep detailed information and receipts so your insurer can put together the right policy for you.

Specialty coverage is usually less expensive

You don’t drive your collector vehicle every day. It probably sits in the garage for weeks at a time, only taken out for the occasional drive or car show. So you shouldn’t pay typical insurance rates.

Insurance for collector cars is often far cheaper than standard commuter insurance. For example, the price of a policy for a 60s Mustang (which includes physical damage, comprehensive and collision) may only cost a couple hundred dollars.

Furthermore, bulk pricing is available for collectors with large collections including instant coverage when you buy a new vehicle.

Designed for low mileage use

Most specialty collector insurance carriers will not restrict how many miles you can drive your car each year but they aren’t looking to insure classic cars that are driven daily. Average mileage for these cars is between 2000-3000 miles per year – including car shows and events. If you do drive your car daily, high net worth carriers such as Chubb will insure your vehicle but the cost will be reflective of the use.

Collector car insurance uses the Agreed Value

Automobile insurance comes in three varieties:

  • Actual Cash Value: This is the depreciated book value that you would find in a source like Kelly Blue Book. Older cars with more miles and in poorer conditions are worth less. This is how a majority of cars are insured.
  • Stated Value: This is for collectibles. The insurer allows you state the value of the car that’s greater than the depreciated value. But the car still can depreciate, so you might get less than you expect in a claim.
  • Agreed Value: This type of insurance lets you state the vehicle’s value and guarantees you’ll get the full value of your policy in a claim. There’s no depreciation.

Collector cars are hard to price. They don’t have a clear market value. They also often appreciate in value. This means you always want to buy a policy that’s written with an Agreed Value so you’re paid accordingly should something happen. Coverage is also in effect for the full 12 months of the year, so there is no need to call and suspend coverage during the Winter months.

Don’t limit yourself to traditional insurance policies. Speak with us about insuring your collector or exotic car.

Mary McGrath
Personal Lines Manager
mmcgrath@srfm.com

Mary McGrath Personal Lines Account Executive mailto:mmcgrath@srfm.com

Disruption Ahead: The Brave New World of Self-Driving Cars

the self-driving car is comingLike it or not, self-driving cars are coming.  A rapid increase in the use of “autonomous automobiles,” as industry savants prefer to call them, is seen by many as a foregone conclusion.  Following the early lead of Google, which has been developing the concept for over six years, virtually every carmaker in the U.S. market is working on some version of this new technology.  Some, like Tesla and Cadillac, are already introducing aspects of these systems into their cars.  The ultimate mass-market endorsement, though, was surely the recent Time Magazine cover story that devoted a whopping nine pages to the subject, mostly extolling the upsides of this “next big thing” and the vastly transformative affect it will have on our lives.

Within the US insurance industry, however, everything about the coming of the self-driving car is not so rosy.  While much about the future of these cars is open to vigorous debate — for the simple reason that their full impact on the daily lives of American drivers is unknowable at this point — many in the insurance industry see these new cars as a potential source of disruption.  And not in the happy, trendy way tech entrepreneurs like to throw that term around.  The capacity for autonomous driving to reduce traffic accidents and especially fatalities, and all of the personal, legal and emotional costs that come with them, will likely undermine much of what is currently considered accepted fact in the automobile insurance business, and not just a little.

The most dire outlook so far was laid out last year in a report by the influential accounting firm KPMG, which predicted that a steep decline in automobile accidents over the next decade would be followed by a corresponding drop in accident claims and insurance premiums.  Within 25 years, the report predicts, these declines could reduce the volume of the entire insurance industry to “40 percent of its current size.”  According to the Insurance Information Institute, research shows that even in its earliest stages, the bits of driverless technology and related safety features already introduced into American cars have begun to reduce the number of fatalities between 2008 and 2011 by as much as a third.  This trend will pick up more speed as more pieces of these systems are added will have an ever greater influence on the economics of the industry.

 Other predictions about the timing and extent of these changes vary greatly.  The most optimistic estimates for the complete adaptation of the autonomous automobile pinpoint the year 2030 as the date by which all American cars will have this technology.  Other sources see too many potential roadblocks still lying ahead for there to be complete market penetration by anything close to that date.  Most estimates see a gradual introduction of features over the next two to three decades with a proportional decline in the role of the driver as the technology is refined and the public, as well as federal and local governments become more comfortable with it.  By some accounts, the complete integration of this technology could take another 30 to 40 years, if not longer.

In addition to the fundamental economic impact of driverless cars on the insurance industry, there is also a thicket of legal and political issues about liability and culpability that has to be cleared over the next several years, a task made all the more difficult because many of those issues need to be worked out on a state-by-state basis.  If the past is any indication, the big question about who is responsible in a collision involving an autonomous car: the owner, the car manufacturer or the developer of the technology — and their respective underwriters will be pounded out one small increment at a time.  So hang on for a very bumpy ride, which is the one aspect of this automotive innovation that is not likely to be fixed by technology.

Jonathan Belek
Risk Management Consultant
jbelek@srfm.com

Jonathan-Belek

Life is a highway. Drive safe this summer

Marty SheaYou’ve been on the road for hours, hauling your load in the sweltering heat. The sun is so hot it crawls on your skin. You have only a few miles to reach your destination to get some needed rest when your rig starts to overheat.

Your day just got longer…. and hotter.

Summer driving for long-haul truckers present certain challenges. But there are ways to stay ahead of the game by protecting truckers from the heat and performing seasonal safety checks and basic maintenance on trucks.

Here are seven tips to keep your fleet in tip top shape and safe this summer.

Check your oil.  You want a cool engine during long summer hauls. Make sure there is enough engine oil to keep your truck engine cool and well lubricated. Check the gauge often to make sure the levels are adequate.

Keep your tires inflated. Tires wear out faster in hot temperature, so check your tire pressure before you head out on the road in order to prevent flats or blowouts.

Check your battery. Believe it or not, the heat takes a toll on batteries. Check your battery to be sure the heat is not evaporating the fluid and overcharging it.

Keep an eye on coolants. Check your antifreeze level. Keeping it in normal range will prevent trucks from overheating and creating engine trouble. Always remember to never remove the radiator cap until the engine has cooled.

Check your brakes.  Make sure your brakes are working properly. Hot temperatures can compromise them.  The last thing you need is a brake issue as you are descending a mountain!

Keep yourself hydrated. Rigs need fluids to keep them running properly and so do truckers. Drink plenty of water. Keep bottled water with you while driving so you can hydrate yourself and avoid heat stroke and cramps.

Wear Sunscreen. UV sun rays are dangerous and can penetrate glass. Protect yourself from the sun with sunscreen, wear polarized sun glasses and wear long sleeves.

These are just a few tips for keeping your fleet safe on the road this summer- for more information on our Safety Training program for the Trucking Industry, drop me an email mshea@srfm.com

 

 

Wallingford Car Insurance: Ready to Go Electric?

Wallingford Car Insurance: Ready to Go Electric? Wallingford Car Insurance: Ready to Go Electric?

If you have been contemplating going green the next time you are ready to purchase a vehicle, you might have realized that you have an expanding number of options. Over the last decade, dozens of low emissions vehicles have emerged as affordable options on the consumer market from nearly all of the largest producers in the auto industry. Once limited to gas and electric hybrids, consumers now have to options to go partially or fully electric, and with new technologies emerging every year it is becoming increasingly apparent that green vehicles are the future. But according to recent reports, not everyone is ready to go electric.

According to Edmunds, an auto research firm and consumer resource, sales of all-electronic vehicles, hybrids, and plug-in hybrids have accounted for just 3.6% of new-car sales thus far in 2014. Which is slightly less than their presence in last year’s auto sale statistics. The data suggests that the sale of green vehicles has stalled in an otherwise booming auto market. But why?

The Alternative Fuel Data Center, a division of the U.S. Department of Energy, advocates that hybrid and plug-in electric vehicles can help reduce U.S. reliance on imported petroleum, increase energy security and reduce your own negative impact on the environment. It would seem the green vehicles are a win-win for everyone, consumers, the environment and even the country as a whole, yet consumers hold their reservations about these new autos. Experts suggest that the primary reluctance for many consumers is anxiety about the capabilities and limits of these vehicles.

While there a similar probability of running out of gas as there is a likelihood of running out electric charge or battery-juice, motorists still remain fearful about the capabilities of the new technologies. Other concerns many consumers hold are whether the vehicles are reliable, cost effective and whether they will fit the user’s lifestyle. Advocates of green vehicles however, are increasing their efforts to educate consumers about the benefits of electronic vehicles in hopes of inspiring more widespread adoption of the technology.  The University of Davis’s Institute of Transportation Studies has even crafted a clever and entertaining web application to help consumers determine what type of low emissions vehicle is the best fit for your family.

Are you ready to go electric?

Whatever you drive, taking the right steps to protect is important. At Sinclair Risk and Financial Management we are can help protect you and your loved ones on and off the road. We offer a variety of personal insurance solutions to help keep all your assets protected. Whether you drive an exotic sports car or an eco-friendly auto, our Wallingford Car Insurance specialist can help crafts a policy that best fits your needs and risk exposures. Give one of our Wallingford car insurance specialists a call today at (877) 602-2305 to learn more about all our offerings.

Wallingford Auto Insurance: Protecting Kids in Hot Weather

Wallingford Auto Insurance: Protecting Kids in Hot Weather
Connecticut Auto Insurance Protecting Kids in Hot Weather

August can be one of the most dangerous times of the year in many parts of the country, where humidity and temperatures can reach stifling heights and cause heath concerns for many citizens, especially children.  Over a dozen child fatalities have already resulted from severe heatstroke this year, most commonly sustained from being left unattended in family vehicle. Last year 44 infants and toddlers were lost due to heat stroke from sitting in a hot car. The U.S. Department of Transportation (DOT) and National Highway Traffic Safety Administration (NHTSA) assert that all of these deaths are unnecessary and 100 percent preventable, and have revamped their “Where’s Baby?” campaign for the third year to raise awareness about the issue.

Both agencies are reminding parents that heatstroke caused by leaving a child unintended in a vehicle takes a rapid toll. Due to their construction, vehicles heat up incredibly rapidly as they absorb sunlight and trap heat inside. On a warm day under 80 degrees Fahrenheit , the temperature can build up to dangerous level within ten minutes even when windows have been rolled down a few inches.  Higher temperatures will cause the car to heat up even faster. When a child’s body temperature reaches over 102 severe health complications can occur, and when their temperatures reaches above 107 degrees there is a high risk of fatality.

DOT and NHTSA are urging parents and caregivers to take a few precautions to help prevent heatstroke occurring to your family, friends and neighbors.

  • Never leave a child unattended in a vehicle. Even if the windows are down or air conditioning is on the child is in danger.
  • Check the entire vehicle before locking the doors and walking away and store keys out of a child’s reach to avoid them investigating a vehicle on their own.
  • Ask your childcare provider to call if your child fails to show up for care as anticipated. This is simply a good overall practice to retain knowledge of your young child’s whereabouts.

A child who has been exposed to high temperature should be removed from a vehicle as quickly as possible and rapidly cooled. The DOT and NHTSA also urge community members who encounter or witness a child alone in a vehicle to immediately call 911 or the local emergency number when temperatures are hot because the child is in danger.

At Sinclair Risk and Financial Management protecting your family is important to us. That’s why we are proud to offer strategic financial and risk management services to Wallingford, Connecticut families. We offer a variety of personal insurance solutions, including auto, home and life policies, to help keep you and your loved ones safe for a variety of life’s risk exposures.  Give one of our Wallingford auto insurance specialists a call today at (877) 602-2305 to learn more about all our offerings.

Why You Need Wallingford Commercial Auto Comprehensive Coverage

Why You Need Wallingford Commercial Auto Comprehensive Coverage Wallingford Commercial Auto Insurance Benefits of Comprehensive Coverage

While not all companies may anticipate their needs for commercial auto insurance coverage, businesses do benefit from obtaining coverage protecting all company utilized transportation. Wallingford Commercial Auto Comprehensive Coverage can be particularly instrumental in protecting company assets from risks beyond collision, property damage and injury. Comprehensive coverage can help manage out of pocket costs for damage that is not the result of a collision. The deductibles are generally low for Wallingford Commercial Auto Comprehensive Coverage, which can be an added bonus for businesses looking to conserve financial resources but protect their property.

This coverage can protect businesses from a variety of hazards:

  • Windshield and glass: Windshield and window related damage is the one of the most common comprehensive coverage claims. Cracks pose a huge risk for drivers and in turn the businesses which employ them. Many states have laws prohibit driving with chipped or cracked front glass and drivers can face fines as a result.
  • Falling objects and projectiles: Falling objects can cause a lot of damage to a vehicle from breaking glass to damaging framework and mechanical components.  Damages to a company utilized vehicle caused by anything from natural to manmade threats can be protected under a Wallingford Commercial Auto Comprehensive Coverage policy.
  • Natural disaster damage: Destruction cause by the harshest weather and natural events can be covered under comprehensive auto insurance policies as well. Flooding, landslide, earthquake and even volcanic activity pose great threats to many vehicles as natural disasters can hit anywhere at any time. It is important to be prepared.
  • Animal damage: Animals can cause substantial damage should they be involved in or cause an accident. Many animals can cause structural damage to vehicle even without being part of a collision through simple curiosity or aggression, including chewed wires, scratches and dents.
  • Vandalism and theft: All vehicles are at risk of damage cause by vandalism, from a key etched scratch along the side of a vehicle to slashed tires. The necessary repairs can be expensive, new tires can cost hundreds as can new paint and parts. Theft is also a great concern for any vehicles. Comprehensive coverage can help recuperate company losses in the event of vehicle theft.

Assessing your business’s exposure to auto related risks can be challenging especially for small businesses or organizations which do not directly utilize motor vehicles for daily business functions. If the vehicle is being used for business purposes, fines and repair fees can be passed to the employer even if it is not a business owned vehicle. Company owned vehicles and non-owned vehicles utilized for a business’s benefit should be factored into any Wallingford Commercial Auto Comprehensive Coverage insurance plan.

At Sinclair Risk and Financial Management we can help identify your business’s risk exposure and create insurance policies based on your specific needs. Our Commercial Auto Insurance policies provide the best comprehensive, collision and liability coverage for any business related vehicle. Call us at (877) 602-2305 to make sure your vehicles and drivers are protected.

Caring For Your Exotic Car

Caring For Your Exotic Car  Caring For Your Exotic Car

A common assumption many individuals make is that their exotic car will be covered by their standard Connecticut personal auto insurance policy. On the contrary, this type of vehicle will need special insurance coverage due to its high value.

Because an exotic car is such a large investment, you’ll want to do everything you can to protect it, both financially and physically. Here are some tips when it comes to caring for your exotic car.

Use compressed air and a vacuum for the interior. To get to every nook and cranny in your vehicle, use an air compressor to blow all debris to the center of your carpets, and then vacuum it up.

Keep the “new-car smell” lasting longer by cleaning the ducts. If your car has a cabin air filter you can change it, or remove it and blow the dust and dirt out. Also, getting dust and dirt out of the heating and air-conditioning ductwork on a regular basis will keep your car smelling fresher, longer.

Use non-acid based tire cleaners. Acid-based cleaners can cause bare alloy wheels to oxidize and pit, and they can damage wheels that are painted with color or clear coatings.

Use appropriate carwash solutions to hand wash your car. Using soaps that aren’t meant for car surfaces, such and dishwashing detergent, will strip away the protective wax coating on your vehicle, exposing it to possible nicks, scratches, and stains.

Store your car in a garage. Storing your exotic car outdoors exposes it to inclement weather, bird droppings, and other types of damage.

Polish and wax your car. Polish helps smooth the surface of the pain, making it shine and helping your car look newer. Wax will wear off in a few months, but during that time it will absorb stains and small scratches before those hazards make it to the paint.

Know when to see a pro. If your paint has a scratch that goes down to the metal, the only way to fix it is by sanding and filling the scratch with pain, using a tiny pinstriping brush. It takes experience to know how to properly do this.

Sinclair Risk & Financial Management has access to specialty insurance markets to find you the right coverages and features for your Fairfield County exotic car. We can secure a policy to protect the true value of your car, and include an option to increase coverage on the vehicle to reflect changes in market value anytime prior to a covered loss. We have programs that will insure collections worth millions. Give one of our professionals a call at (877) 602-2305.

The Difference Between Auto & Exotic Car Insurance

The Difference between Auto & Exotic Car InsuranceThe Difference between Auto & Exotic Car Insurance

Each car is different. For instance, a 2013 Honda Accord LX and a 2012 Honda Accord LX marginally differ in look and performance. But this margin expands when you compare an Honda Accord with a Bentley Continental GT Speed or a 1966 Shelby 427 Cobra.

Purchasing an exotic or classic car is an investment in both time and money. So, why protect your baby with a standard auto insurance policy designed for standard cars?

Before you cross the t’s and dot the i’s, review the differences between auto and Connecticut exotic car insurance.

The Cost: If you are like most exotic and classic car owners, your Bentley isn’t your everyday car. Because standard cars are more likely to be driven often, purchasing exotic or classic car insurance is less costly. Insurance carriers presume that a loss is less likely to occur if a car has mileage restrictions (ranges from 1,000 to 7,000 miles, annually). In short, the less you drive a car, less risks you’ll face.

Storage: Unlike standard cars, insurance companies require exotic and classic cars to be placed in a fully enclosed garage (preferably one with a security system) when not in use. This requirement is intended to protect your car from severe weather conditions, theft and vandalism.

How Value is Calculated: A standard auto insurance policy utilizes Actual Cash Value (ACV) whereas exotic and classic car insurance utilizes Agreed Value. ACV assumes that a car’s value will gradually decrease over time, therefore offering a deprecated value. But for exotic and classic cars, an Agreed Value will be established. This means that the insurance company and you will calculate a guaranteed value that you will receive at the time of a loss.

Sinclair Risk & Financial Management has access to specialty insurance markets to find you the right coverages and features for your Connecticut classic car. We can secure a policy to protect the true value of your car, and include an option to increase coverage on the vehicle to reflect changes in market value anytime prior to a covered loss. We have programs that will insure collections worth millions. Give one of our professionals a call at 203.265.0996