Interested in high net worth families with more cars than drivers, Florida’s Privilege Underwriters Reciprocal Exchange or PURE is ratcheting up their auto coverage program.
Based on an agreed value policy system, PURE Executive Vice President and Chief Operating Officer Martin Hartley said in the event of a claim on a totaled vehicle, the pre-agreed upon value of the vehicle is paid in full without a depreciation factor and without a deductible.
“If after a total loss this agreed value does not fully cover members’ outstanding leases or loan obligations, PURE will cover the additional costs,” Hartley said.
In order to steer away from the “hidden driver” issue where there may be an unmentioned teenage driver in the household for example, PURE associates with a select group of independent agents, according to Hartley.
“These agents often do their own underwriting and know their clients very well,” Hartley said.
As a reciprocal exchange, PURE is member-owned, which means programs are tailored to what members want or need, Hartley said.
Still in its infancy, Hartley said PURE’s private fleet business has written slightly less than $2 million in premium. He said until recently it has basically been a word-of-mouth situation, but the company is now ready to add the business to the exchange’s “front burner.”
PURE members are required to make an annual surplus contribution in each of their first five years of membership. Surplus contributions are equal to 10 percent of their annual High Value Homeowners premium and 4 percent of annual premium for all other lines of business including auto.