The 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