Why High Value Vehicles NEED. Luxury Car Insurance

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1 A PUBLICATION BY: GODFREY MORROW GODFREY INSURANCE MORROW AND INSURANCE FINANCIAL AND SERVICES FINANCIAL LTD. SERVICES LTD Why High Value Vehicles NEED Luxury Car Insurance Not long ago the only place Canadians could see a luxury vehicle was in the movies, in a magazine, or on television. No one can forget the Derby Bentley convertible in From Russia With Love" or the Aston Martin V12 Vanquish in "Die Another Day." The Aston Martin DBS is rooted in Bond lore, going as far back as On Her Majesty s Secret Service in The DBS was rolled seven and-a-half times in Casino Royale in 2006, earning a Guinness World Record. These days, a drive down any major highway in Canada is likely to provide a glimpse of a British born Aston Martin or Bentley, an Italian beauty like a Ferrari, Lamborghini, or Maserati, a Dutch Spyker, or an American-made Fisker. In major population centers, several of these supercars can be seen during a drive across town. Supercars showcase wealth and the value and enjoyment these cars provide is truly remarkable. Calgary and Edmonton are two centers where new and old wealth is showcased by some of the most luxurious (and the most expensive) cars on the road. Dealerships in these cities have accomplished record sales. The Dilawri Automotive Group represents eight manufacturers in five state-of-the-art dealerships in Canada -- the newest one in Calgary. GODFREY MORROW INSURANCE 1 P age

2 A PUBLICATION BY: GODFREY MORROW GODFREY INSURANCE MORROW AND INSURANCE FINANCIAL AND SERVICES FINANCIAL LTD. SERVICES LTD Tony Dilawri transformed the former Holt Renfrew downtown retail location at 8th Avenue and 3rd Street S.W. in the Core Shopping Center into a supercar showroom. In his new showroom, The Dilawri Detour In The Core, Dilawri utilizes 5,000 square feet of prime real estate to display his most expensive vehicles. He has 14 cars on display, including brands like Bentley, Aston Martin, Fisker, Mini and BMW. Retail luxury accessories are also available. The momentum of the luxury vehicle industry was also reflected at a recent Vancouver car show, the 2012 Luxury Supercar & Concours d Elegance. The event attracted a significant number of buyers from Calgary. According to event spokesman Craig Stowe, 25-percent of the crowd was either from Calgary, Edmonton, or Red Deer. Eighty older vehicles in different categories were also featured at this year s event and with a muse from 50 years of James Bond movies, focused on nearly 100 years of Aston Martin vehicles. The oil and gas industry has created tremendous wealth in the Calgary area. Chairman of Concours and president of the 2012 Luxury Supercar & Concours d Elegance event, Nigel Matthews, also notes that the growth of the exotic car market in Canada is strengthened by the baby boomer demographic -- empty nesters who are having fun buying what they wanted to buy when they were younger. Since the value of these cars increases, a growing group of wealthy Canadians collect them as they would stamp collections and fine wine. These luxury car buyers don t want to insure their $250,000 vehicles with the same kind of policy with the same restrictions and coverage as those who acquire ordinary, less expensive vehicles. They need luxury car insurance for their high-value vehicles. A mere repair or replacement with like kind and quality just isn t suitable for their vehicles. Just as specialty insurance is required for their high-value custom homes, the same is true for their luxury vehicles. High-value vehicles require luxury car insurance that s flexible, customizable, and less encumbered by limits. Many companies will insure expensive vehicles; however, these companies insure a broad spectrum of vehicles in varying degrees of value and their policies and coverage reflects a less than flexible, customized approach. The policies available from these companies certainly can t be considered luxury car insurance. Luxury vehicles require special coverage that includes superb customer service, higherthan-average limits and flexibility, as well as special claims adjusting processes. GODFREY MORROW INSURANCE 2 P age

3 INVESTOR A PUBLICATION NEWSLETTER BY: GODFREY ISSUE MORROW N 3 GODFREY INSURANCE MORROW AND INSURANCE FINANCIAL AND SERVICES FINANCIAL LTD. SERVICES LTD. FALL Insuring a Luxury Automobile Has Special Requirements Many luxury vehicle owners seek an insurance coverage as if it were a commodity and select a policy based on the market that will provide them with the lowest premium. When they re involved in an accident, they realize their company doesn t provide the level of service they re accustomed to. Luxury car owners need a company that approaches underwriting luxury car insurance with care and one that s committed to the unique needs of their policy holders. Your vehicle is an investment and selecting a company that ensures your best interests are a top priority in the event of a loss should be of utmost importance. The Chubb Group of Insurance Companies specialize in insuring high-value property and vehicles. Chubb provides specialty insurance with policies and coverages that include a special approach to product selection/underwriting, claims settlement practices, and customer experiences that is tailored to protect the owners of high-end luxury vehicles. Here we highlight the specific coverage and protection that owners of high-value vehicles should look for when seeking luxury car insurance. What Luxury Car Insurance Needs to Provide Strategic Pricing: Strategic pricing means you benefit from competitive pricing on luxury car insurance. Also look for available credits. Superior Claims Service: You need a luxury car insurance company whose claims adjusters are dedicated to providing the best service. Make sure the company is consistently rated as superior in customer satisfaction. The use of Original Equipment Manufacturer (OEM) Parts: Make sure the insurance company doesn t allow the use after-market or reproduction parts. Be certain you ll get genuine, original parts to repair your car. Luxury car insurance assures vehicle owners that OEM parts are used for replacement and repair in the event their vehicle is damaged in a collision. Many insurance companies will cover the cost of a reproduction part, such as a fender, if one is available. Luxury car insurance companies realize that the owners of high-value vehicles shouldn t settle for the use of anything less than OEM parts for replacement or repair. The use of original manufacturer parts ensures the value of your vehicle (and its resale valued) is maintained, after repairs are made. This is by far the number one luxury car insurance enhancement you need to make sure is included in your coverage. A Body shop of insured s choice: Excellent body shops are located in all cities; however, this doesn t necessarily mean the owner of a luxury vehicle will be comfortable trusting all of them to care for their vehicle during repairs. Make sure your insurance company allows you to choose the body shop you feel comfortable with to ensures your peace of mind remains in place during repairs. This freedom of choice will also ensure your satisfaction with any repairs completed. GODFREY MORROW INSURANCE 3 P age

4 INVESTOR A PUBLICATION NEWSLETTER BY: ISSUE N 3 GODFREY MORROW INSURANCE AND FINANCIAL SERVICES LTD. FALL Special Needs in the Event of a Partial loss Replacements without a charge for depreciation: A partial loss requires the replacement of damaged tires, batteries, or engine parts. Many clients aren t aware that regular auto insurance policies subtract depreciation from the amount covered by their insurance when replacements parts are required. Ensuring this practice does not apply to your luxury car insurance coverage is imperative. Depreciation on $5,000 tires can add up quickly. In the Event Your Luxury Vehicle is Considered a Total Loss A Waived Deductible: whether the deductible is a percentage of the vehicle s value or a set amount, it s always nicer to know the actual financial consequences in the event your vehicle becomes damaged beyond repair and is considered a total loss. In addition to having a $250,000 vehicle destroyed, paying a $10,000 deductible only adds insult to injury. Your luxury car insurance policy should include a waiver of any deductible amount. An agreed value: Generally, determining the actual amount an insurance company pays in the event of a total loss, a vehicle s replacement cost, is calculated using a market search. Depreciation is then subtracted from the vehicle s market value to arrive at the replacement cost. However, with a luxury vehicle, many of our clients prefer to pay a slightly higher premium and have an agreed upon value listed on their policy. The agreed value of your vehicle is used in the event your vehicle is considered a total loss. Listing an agreed value on your policy allows you to be certain what your settlement amount the vehicle will be, right at the time you purchase your policy. In the event of covered damages such as a total loss or theft, your deductible is waived and no depreciation applies. Payment within 48 hours of settling a loss: It is never preferable to wait for money when settling a loss. Especially given the amounts when dealing with the value of a luxury vehicle, you ll want your settlement immediately; not wait months to receive it. GODFREY MORROW INSURANCE 4 P age

5 INVESTOR A PUBLICATION NEWSLETTER BY: ISSUE N 3 GODFREY MORROW INSURANCE AND FINANCIAL SERVICES LTD. FALL Luxury Car Insurance Provides Additional Value for Rental Car Coverage SEF 20 Limit of $3000 or $5000: This is coverage for a replacement rental car, when the your car is being repaired. A limit of $3,000 per occurrence without a maximum daily limit, provides the flexibility you need to select the kind of vehicle you re accustomed to when you need a rental. Look for an option of up to $5,000 per occurrence for greater flexibility. Allowing for increased limits reflects the increased cost of a rental car more reflective of what a luxury car owner is accustomed to. SEF 27 Liability for Damage to Non-Owned Vehicles: Look for a limit of $75,000 to ensure you have adequate coverage for your rental vehicles. General Damage to a rental vehicle: Your coverage should apply anywhere in the world, with the purchase of an Excess Liability policy; no deductible will apply. Discounts Available for Luxury Car Insurance Policy Holders More vehicles than drivers discount: This discount, which is not available through most regular insurance companies, reflects the fact that luxury car owners often have more cars than drivers in their household and that the luxury car is not always driven. Therefore, exposure to the risk of a loss decreases. Eco-friendly vehicle discount: If your vehicle is eco-friendly, there are discounts available to help reduce your luxury car insurance rates and lower your premiums. Chubb Specialty Insurance for High-value Vehicles Provides You With Certainty You insure your most important asset, your home, with specialty insurance; however, your vehicle places you at a much greater exposure to risk, the risk of a lawsuit. You need adequate coverage on your vehicle to protect your other assets. Chubb brokers have the specialized experience and expertise to make sure your assets are protected. We offer extensive underwriting and claims expertise and experience in covering high-value and exotic vehicles. today to make sure you re assets are protected! By adding a vehicle to an excess liability policy, you may be able to purchase adequate limits to protect your assets in amounts up to $50 million. Please contact a luxury car insurance representative at Chubb GODFREY MORROW INSURANCE 5 P age

6 A PUBLICATION BY: GODFREY MORROW GODFREY INSURANCE MORROW AND INSURANCE FINANCIAL AND SERVICES FINANCIAL LTD. SERVICES LTD The benefits Chubb clients receive include the following: Strategic Pricing Superior Claims Service Genuine, original equipment manufacturer replacement parts for repairs Client s Choice of Body Shop Replacement without depreciation Agreed Value Higher Limits for Rental Car Coverage Higher Loss of Use Limits for Rental Cars Special discounts And many other benefits Chubb Insurance Companies of Canada have the capacity to underwrite the most expensive cars in the world and we ve established relationships with representatives that have the expertise necessary to understand the special needs of the owners of high-value vehicles. Our claims process is based on integrity, fairness, and respect. Our representatives are guided by our Chubb s claims philosophy, established when Chubb was founded in This philosophy recognizes that in addition to our contractual responsibility, we have a moral obligation to each client. Our automotive claims process was rated Number 1 for satisfaction by the Financial Services Commission of Ontario, in six of the seven years we were surveyed. Chubb is pleased to announce we ve established relationships with representatives in Calgary at Godfrey Morrow Insurance to meet your luxury car insurance needs. If you would like more information or would like to receive a quote, please contact a representative at Godfrey Morrow Insurance today. Our representatives at Godfrey Morrow will answer your questions and help you acquire coverage based on your individual needs. GODFREY MORROW INSURANCE 6 P age