Cost of insurance. You're getting ripped off.

thedoc46 · 11 Nov 2013 at 21:06

To be honest, I've never bothered insuring my bike ever since moving to the States. Not needed in the state of FL.

But given I'm taking delivery of a new FZ-09 (MT-09 in the UK) I took it upon myself to get a quote.

Well for a yr, its $110, third party fire and theft (US equiv) with a $500 deductible.

Wow, just wow. I have a little Kwaka KLX250sf, and that was $60 for the yr, so i said, well why not, throw a policy on that too while you're at it lady !

So for the equiv of a 100quid, i have TWO bikes insured.

Makes me wonder, how much do you pay in England? Why cos its compulsory.

Given its not compulsory here, then it brings the price into perspective.

Feel ripped off all those years having insurance in the UK, never once making a claim...

wazza300 · 11 Nov 2013 at 21:46

Sure worth it if you crash or get it stolen,you take a chance in the us if its voluntary

But Yh this country is a rip off for everything

thedoc46 · 11 Nov 2013 at 22:05

Yeah for 100quid its kinda hard to say no. But the point i'm trying to make is it must still be profitable for them otherwise they wouldn't underwrite it, but they're keeping the prices low cos its not compulsory.

Fireskull · 12 Nov 2013 at 11:36

We know we get ripped off don't remind us!!

So if you don't have insurance and crash into someone, what happens? you pay for the damage?

Griffo · 12 Nov 2013 at 14:54

Fireskull said:
We know we get ripped off don't remind us!!

So if you don't have insurance and crash into someone, what happens? you pay for the damage?

I think you take your parents to court for bringing you up wrong, or your school for failing to teach you enough at cycling proficiency.

(Sorry I couldn't resist)

thedoc46 · 12 Nov 2013 at 16:55

Fireskull said:
We know we get ripped off don't remind us!!

So if you don't have insurance and crash into someone, what happens? you pay for the damage?

Correct.

If you have a history of an accident and were at fault, then you need to by law have insurance.

I guess if you ran someone over and seriously injured them you'd be screwed. But even with insurance you'd be screwed, cos they'd be coming for you, for a lot more than what actual damage was sustained.

Land of litigation and all.

Sin_Chase · 18 Nov 2013 at 01:05

The US is a TOTALLY different market with regards to bikes and cars. Drawing comparisons is nigh on impossible.

Suffice to say, I would not want the general US ideology and driving standards here in the UK...even if it saved me a few hundred on insurance.

Hxc · 18 Nov 2013 at 01:50

As always, insurers are not ripping you off. The car insurance industry combined ratio was 105% at last published figures (2011), which means on premiums alone they are losing money, not ripping you off. Admiral, who appear to be one of the best performing, have a ratio of 84% (2012), which means they actually do make some profit on premiums in vs out, but still have to cover staff, property, and other business costs.

Insurers make money from investments, not from premiums. If you want to complain about the price, complain about the cost of hire cars, the prevalence of whiplash claims, the like.

edit: Ah apologies, didn't see this was in bikers, just assumed it wa a general motors post refering to bikes.

Dogbreath · 18 Nov 2013 at 07:54

Hxc said:
As always, insurers are not ripping you off. The car insurance industry combined ratio was 105% at last published figures (2011), which means on premiums alone they are losing money, not ripping you off.

So does that mean they are using the money from out premiums as efficiently as possible, not pandering to blatantly ridiculous fake claims for for personal injury, not permitting grossly excessive repair charges from their incompetent repair centres, not getting kickbacks from credit hire companies etc..etc?

The whole industry is dysfunctional, and if you genuinely believe they are giving consumers the best possible deal then you are sadly mistaken.

Did you ever actually read the report on insurance companies published by the Office of Fair Trading last year? It's pretty damning.

Sagalout · 18 Nov 2013 at 20:32

I only pay about £100 a year fully comp on a £12k bike anyway

Scort · 20 Nov 2013 at 12:42

To hijack this a tad, but on the same subject:

Just moved house and have the joy of shifting my insurance over - renewed in September and paid £317 in full - just been told that after all the deductions, I will be getting a refund back of £46....

Just holding on the phone for the broker now, as I am trying to ascertain as to why they are charging me roughly £72 a month for the 3 months I have had cover - as that should make the policy upwards of £860... it's going to be one of those small print type things I bet and a bullet I'll have to bite (the broker said something about my insurer cancels on a 'short period basis', so you are billed for the months, rather than the days - as a 'pro rata basis' would).

Long story short, old rented place had a garage, new (owned) home will see the bike kept on the drive under covers and with physical security (Almax chain etc) - so my current insurer won't insure me, but the broker found a new policy, but third party only for an additional £135.

Scort · 20 Nov 2013 at 13:22

Yep, curse of the small print...

- £317 paid at the end of August (£280 for the policy itself, the rest is fees/extras)
- Policy to cancel 3 months later = 50% of my premium returned (should be ~£140)
- Insurance broker is taking a £25 cancellation fee and commission (can you believe that!) of £20

Quoted refund of just over £46!

I've had to email them as I think the refund fee is off, should be nearer £80 by my calculations - but lesson learnt the hard way: if they can, they will charge the arse out of you!