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Insurance premiums....

TwoMetreMan

New member
Got a nasty surprise in the mail today. The invoice for the next twelve months' bike insurance (through Markel) and the premium has risen a cool 20.42%. That was a decided "ouch." The big numbers are for "Comprehensive - Actual Cash Value" and "Collision - Actual Cash Value." Unless my bike (2008 R1200RT) has become an appreciating asset overnight (?), it looks as though the lower risk (reducing capital cost) is attracting higher premiums. Nice for the underwriters, but not for my bank balance.

Am I missing some part of this picture that makes this (to me, dramatic) increase more justifiable, or are Markel wanting out of the bike insurance market?? Needless to say, I'd welcome suggestions of alternative firms to try. I primarily went with Markel because of the association with the MOA.
 
Every state's insurance system is different. In Massachusetts, we have this wonderful explanation to reference, written by an agent who rides: http://listerins.com/MCcoverage.htm

There are links to MANY states in the above URL. If you're buying insurance you really ought to read it directly from the industry, rather than listen to guys on a forum.
 
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Time to compare and shop around ?
Well I used to think buying insurance was like going to Las Vegas, you paid to get in the game because you thought you would get a payoff and when the circumstances came to be, you got money. It has been my experience that paying the entry to get the insurance, to make you "whole", again should you need it, (the insurance company "bet" you weren't going to need it) the payoff needs to be fought for.
Last October I put this thread up- http://forums.bmwmoa.org/showthread.php?64024-I-missed-the-race-today I recently, finally got paid from the insurance company- this July, 8 months. Last time I tried to pay a premium 8 months after the due date, things got messy after the second month.
As for shopping around, I have tried and it seems to end up as the difference between Fios and Cable. YMMV
OM
 
I joined AARP when I turned 50 and really reduced my Bike and Auto insurance. I haven't had any alarming rate increases since. If your a member give it a try, insurance is written through the Hartford Group. (I think it's 40 or 50 a year to join and it pays for itself).

At least shop around as most companies will match the quote to keep your business. Annoying, but true.
 
Time to compare and shop around ?

That was decidedly my initial reaction, Doug - and then I began to wonder what was going on. Had I missed some salient point? Seems that my mind still wants to live back when premiums went down a little each year as the capital risk declined. Simple stuff. I wonder why we humans insist on making life so (*deleted*) complicated??...
 
:thumb Thanks!!

I joined AARP when I turned 50 and really reduced my Bike and Auto insurance. I haven't had any alarming rate increases since. If your a member give it a try, insurance is written through the Hartford Group. (I think it's 40 or 50 a year to join and it pays for itself).

At least shop around as most companies will match the quote to keep your business. Annoying, but true.
 
Just be happy you don't live in Ontario Canada.

I ride a 1977 R100RS and my insurance is $620 a year for full coverage, Bushtec Trailer covered as well.
45 years of continuous riding, no accidents, claims or tickets.

I only have one bike, a second one would be the same cost.

I have checked out other companies and those that would cover a 36 year old bike wanted over $1000.

What do you folks pay in your state?
 
I joined AARP when I turned 50 and really reduced my Bike and Auto insurance. I haven't had any alarming rate increases since. If your a member give it a try, insurance is written through the Hartford Group. (I think it's 40 or 50 a year to join and it pays for itself).

At least shop around as most companies will match the quote to keep your business. Annoying, but true.

Like you, I joined AARP when I turned 50 and later bought my auto insurance through them with their affiliation with Hartford. It saved me some money (I thought) and everything went smoothly for a couple of years. I then got an insurance bill where the insurance on one of my cars and my pick-up went up. I called them and asked why. They told me the insurance on my car went up because I drove it more than "average". I then asked them why the insurance went up on my truck because I only drove it about 3,000 miles per year. I was advised the they were charging more for my truck because it was an "extra" vehicle (2 drivers-3 vehicles) and they feared that I would loan it out. I immediately went insurance shopping and found much cheaper rates with ERIE.

I quit AARP because they filled my mailbox with junk mail almost every day and I didn't like their political position on most issues. It took years for the junk mail to stop. They were formed as a marketing tool and they work hard at it.
 
Did you get a letter that says Markel is now looking at your credit report to 'help' assess risk?
My premium went up a bit, and even tho I have a stellar credit score, they didn't like:

% of open oil company accounts to total open accounts (maybe they think I'll ride too much?):hungover
# of retail accounts established (I obviously buy too much)::violin
# of accounts open in last 24 months (1 HomeDepot & 1 Lowes. Should never have bought a house..)::dunno
Total credit limit amount on department store accounts. (Sears, Lowe's & HDepot, that's it) :scratch

Too easy to compare rates, & Markel was still the cheapest cost, so I'm still with them & at least I got a free credit report out of the deal....:dance
 
Did you get a letter that says Markel is now looking at your credit report to 'help' assess risk?
My premium went up a bit, and even tho I have a stellar credit score, they didn't like:

% of open oil company accounts to total open accounts (maybe they think I'll ride too much?):hungover
# of retail accounts established (I obviously buy too much)::violin
# of accounts open in last 24 months (1 HomeDepot & 1 Lowes. Should never have bought a house..)::dunno
Total credit limit amount on department store accounts. (Sears, Lowe's & HDepot, that's it) :scratch

Too easy to compare rates, & Markel was still the cheapest cost, so I'm still with them & at least I got a free credit report out of the deal....:dance

Insurance companies do this in Oregon too. They do not have to actually look at your credit report though each year! Of course to pull your credit report costs money, so they pay for the report once and then just use the same report year after year, regardless of what your current report may show. I called our state insurance board and learned that once a policy renews and they have not looked at a current report, you can call your insurance company and request (demand) that they pull a current report. If the new report is in your favor, they have to reduce your rates, if it is not in your favor, they cannot increase your rates until the policy renews. I have done this for the last three years and gotten a reduction in my rates each year. Yes, each time its like pulling teeth trying to get them to do. Just have to insistent that they do it. My company will finally give in after giving you a fire and brimstone warning and do it right on the phone and tell me then that I will save $90 a year. Small, but I'll take it.

So if this is allowed in your state, that they can use your credit report (only for autos in Oregon, not motorcycles..??) call your insurance board and find out the laws that govern it and use what you can to your advantage.
 
Just be happy you don't live in Ontario Canada.

I ride a 1977 R100RS and my insurance is $620 a year for full coverage, Bushtec Trailer covered as well.
45 years of continuous riding, no accidents, claims or tickets.

I only have one bike, a second one would be the same cost.

I have checked out other companies and those that would cover a 36 year old bike wanted over $1000.

What do you folks pay in your state?

My fully comp policy for a single bike (2008 R1200RT) with Markel was $617 last year, and they are asking $743 this year. I live in a quiet TN "small town" (more like Sleepyville USA). Coverage is: Bodily injury 50,000/100,000; Property damage liability 25,000; Passenger liability 50,000/100,000; Uninsured motorist bodily injury 25,000/50,000; Uninsured motorist property damage 15,000; Medical 5,000; Funeral 5,000. Deductibles are $250 or less. Resumed riding in 8/2011 after about 40 years absence (don't go there!) Took the Basic MSF course and, although it counts for squat in the States, I qualified as an Advanced Motorist in the UK when I was living there (to the equivalent of state trooper training here in the USA). The only accidents on my insurance record in the last 30 years are from my late-wife.

Anyway! - I need to do some insurance legwork, obviously!!!....
 
...So if this is allowed in your state, that they can use your credit report (only for autos in Oregon, not motorcycles..??) call your insurance board and find out the laws that govern it and use what you can to your advantage.

Tennessee Title 56 - Insurance - Chapter 5 - Part 4 - Restrictions on the use of credit scores:
56-5-403. Notice to consumer of adverse action. ? If an insurer takes an adverse action based on factors that include credit information, the insurer must provide notice to the consumer that an adverse action has been taken. That notice must contain the reason or reasons for the adverse action, described in sufficiently clear and specific language so that a person can identify the basis for the insurer?s decision to take an adverse action. The notice must include a description of up to four (4) factors that were the primary influences of the adverse action. The use of generalized terms such as ?poor credit history,? ?poor credit rating,? or ?poor insurance score? does not meet the explanation requirements of this section. Standardized credit explanations provided by consumer reporting agencies or other third party vendors are deemed to comply with this section.

Looks like I need to call and speak with someone at Markel on the next business day and hear what they have to say about why this huge leap in premium. There was no explanation provided with the invoice (natch, right??!!)

Thanks to everyone who has jumped onto this thread. Every response helps me to build a clearer picture of the overall situation and my options. Cheers!!
 
One thought..

Find an insurance agent/broker who rides. One is a member of our club, and his agency has saved quite a few members significant money. He (actually his agents) run my policy terms/limits past three different insurance companies before every renewal. That has resulted in me changing companies (I'm currently with Progressive) and saving several hundred dollars a year. The great part about this - the agent/broker advertises in our club newsletter, basically funding it's printing and mailing for the year. Win/Win. He gets customers, we get great service and rates, plus he supports our local club.
 
My fully comp policy for a single bike (2008 R1200RT) with Markel was $617 last year, and they are asking $743 this year. I live in a quiet TN "small town" (more like Sleepyville USA). Coverage is: Bodily injury 50,000/100,000; Property damage liability 25,000; Passenger liability 50,000/100,000; Uninsured motorist bodily injury 25,000/50,000; Uninsured motorist property damage 15,000; Medical 5,000; Funeral 5,000. Deductibles are $250 or less. Resumed riding in 8/2011 after about 40 years absence (don't go there!) Took the Basic MSF course and, although it counts for squat in the States, I qualified as an Advanced Motorist in the UK when I was living there (to the equivalent of state trooper training here in the USA). The only accidents on my insurance record in the last 30 years are from my late-wife.

Anyway! - I need to do some insurance legwork, obviously!!!....

I live in a little town near TN in neighboring VA. I just got my renewal bill from Progressive (on line). The premium was $260 for high limits liability limits on my 2003 R1200CLC with full coverage ($250 ded.) and high limits liability coverage on a 2008 Burgman 400.
 
I was referred to Randolph Scott Agency(multi-line agent) in Lexington,KY by a rider on ADV in Louisville,KY a few years back when American Modern raised mine for no particular reason-again! The guy to talk to is Kent Scott, who is a rider. I just payed $117 for yr/Progressive policy on my 2012 G650GS. I had called the Progressive 800# previous to calling this agency & the quote was way higher than what I've paid going through Randolph Scott for same brand policy. FWIW, I have never had a MC claim since 1963.
 
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