Motorcycle Insurance - A losing class of business?
(Article from Canadian Insurance)
Saskatchewan Government Insurance (SGI) isn't the only insurer losing money on motorcycle insurance.
According to Randy Carroll, CEO of the Insurance Brokers Association of Ontario, Jevco's overall loss ratio for its motorcycle business was "well over 100%” over the last three years.
"Obviously this will be an area that will be looked at by those writing this type of risk going forward,” states Carroll.
Intact Insurance, which acquired Jevco in 2012, may have to increase its motorcycle rates to make up for the loss, adds Carroll. Intact had yet to provide further data at time of publication of this post.
Last week, SGI made a proposal to the Saskatchewan Rate Review panel to remove the cap on motorcycle rate increases in an attempt to recover its losses.
"We incur about a $9 to $10 million loss annually,” Don Thompson, vice-president of product management at SGI, told Canadian Insurance Top Broker.
Every other vehicle group, he says, pays 1% more in their rate to subsidize that loss.
The Saskatchewan Rate Review Panel is currently examining the proposal and, if passed, motorcycle drivers in the province could see an average rate increase of 73% as soon as August 31st.
Motorcycle enthusiasts are, understandably, upset.
"We're taking a lot of heat [from consumers],” says Thompson, who admits that brokers will have to deal with many unhappy customers.
Garth Neher, president of the Insurance Brokers' Association of Saskatchewan (IBAS), says his organization always has concerns when consumers are faced with major rate increases.
"But on the other hand,” he says, "SGI is in charge of setting their rates.
"At the end of the day, we have to trust that SGI has actually studied their numbers and that they have the facts to rationalize what they're proposing.”
Both Neher and Thompson stress that this is just a proposal.
"At this point in time, they're presenting the rate proposal. It's not automatic that it's rubber-stamped,” says Neher.
Whether the rate cap removal is approved or not, Thompson stresses that something must be done to ensure every vehicle group is paying a fair rate.
"We're trying to price this product to break even. We're trying to have each rate group pay their right rate so there is no cross-subsidization. That's all we're trying to do here.”
Embarking on the Road to Your First Car: A Journey of Decisions Owning your first car is more than a land
Owning your first car is more than a landmark; it's an exciting journey into newfound independence and mobility. Despite the excitement of selecting your wheels, the road to purchasing your first car can be fraught with twists and turns that necessitate careful navigation. Budget considerations, knowing the complexities of insurance, and evaluating the allure of new cars with the value of used ones are all important decisions. In this blog, we go on a thorough investigation, digging into the critical criteria that every first-time automobile buyer should consider. Join us as we rev up the engines and navigate the critical insights that pave the road for a confident and informed decision. This decision not only fits your lifestyle today but also tomorrow.
Things to Consider When Purchasing Your First Car
1. Useful Budgeting
Your budget covers insurance, maintenance, fuel, and unforeseen repairs in addition to the purchase price. Consider all of these expenses to ensure that your new wheels do not become a financial burden.
2. Research and Test Drive
Don't make a hasty purchase. Investigate various makes and models, considering factors like fuel efficiency, safety ratings, and reliability. Take many test drives to gain a feel for the vehicle and confirm it fulfills your requirements.
3. New versus Used
Both options have advantages and disadvantages. A new car may come with a guarantee and the most up-to-date equipment, but a used car may provide greater value for money. Make a conscious decision based on your priorities.
4. Insurance Fees
Insurance prices might vary greatly depending on the brand and model of the vehicle, your age, driving history, and region. To avoid unpleasant surprises, obtain insurance estimates before making your final decision.
5. Recognise Your Financing Options
If you are considering financing, be sure you thoroughly grasp the terms. To get the best offer, compare interest rates, loan terms, and monthly payments. Always read the fine print to avoid any surprises.
6. Inspection & Vehicle History
Obtain a vehicle history report for used cars to look for previous accidents or major repairs. Consider having a pre-purchase check from a reputable mechanic to ensure the vehicle is in good condition.
7. Fuel Efficiency & Upkeep
To estimate the car's long-term costs, consider its fuel economy. Investigate the maintenance plan as well as the costs associated with routine servicing, part replacement, and any specialized requirements.
8. Market Value
While it may not be your primary concern right now, the resale value of your automobile can have a significant impact on your finances when it comes time to update. To maximize your investment, choose a car with a high resale value.
9. The Costs of Ownership
Aside from the initial purchase, keep in mind that car ownership entails taxes, registration fees, and maintenance costs.
10 Security Features
Airbags, anti-lock braking systems (ABS), stability control, and advanced driver-assistance systems (ADAS) should be prioritized. Your driving safety should never be jeopardized.
Owning your first car is an exciting experience, but you must go with prudence and thorough research. By taking these things into account, you can make a decision that not only matches your lifestyle but also ensures a smooth and happy journey ahead.
To answer this question, the source of the water must be known first. For instance, if it were to seep in through the floor or the walls, there is NO Coverage. If your sump pump were to fail or the sewer were to back up, as long as you had SEWER/SUMP PUMP Coverage endorsement on your policy, the policy would pay.
No. Car Insurance will only cover things such as equipment that is attached. All other things would be covered by your home or tenants insurance. One thing to realize is that most deductibles are usually 300, 500, or 1000 so most small claims won?t be covered. Another thing to note, is that most insurance companies will not pay more than $1,500 for electronic equipment. So for those who have expensive stereos, you must notify us to ensure you are covered.
No Fault insurance simply refers to the fact that when you are involved in a car accident, you will will deal with your own insurance company regardless of whose fault the accident was. Every accident still carries the element of fault and the person responsible for the accident will have their insurance premiums affected.
When it comes to car insurance, the amount of money saved by raising your deductible from 300 to 500 or even 1,000 is usually not worth while. Sometimes it as little as $15 saved to have your deductible raised. We do recommend that you consider 500 or 1000 on house insurance as there is a considerable savings and in most cases, it is not recommend that you submit a claim that is under $500.