Insurance Facts from a Professional

[twocool]

Mr. Lee...........


I agree with you !!!!


(imagine that)

The premium on our bikes is far too much compared to the insured value. 


We are talking small numbers here, like $2K....

If I take a $2K "hit"...so what?   I have $2K sitting right here on my desk...I'll go buy another GS and go on with my life...

As you said...in 6 years...I'm "even"...(I'm already at 5 years now) so I have $1400 I wouldn't have if I paid the premium.

Now...bigger numbers are different.....The airplane I fly for work is valued at $120,000....

I do not have $120,000 in my checking account...If this plane gets damage, I have no job....

So, we have full insurance on this airplane!

But my $2000 motorcycle, or my $5000 car....no insurance ( other than state required liability)

Cookie


 

So, if I would be paying $225 a year just for theft, would it be worth it?
even if the bike is worth only $2000, they probably only give $1500 back for it.
That's 6 years and the insurance money I paid extra, would have paid itself back.
So, unless you plan on getting a bike stolen every 6 years, I would say it's not needed...

[twocool]

Gator,


Well you have good intentions...I'm sure you are fair and honest...

But already I find conflicts.

Insurance companies are  full of nice people...I know many of them...

The point of insurance companies is to make money.

They make money by taking in premiums (also investing money)....and by paying out as little as possible in settlements. 

This is not "evil" or "dishonest"...this is just they way they do business.

The customers want to be "covered"... as in as little risk as possible, or at least acceptable.

The two above are in conflict..
So maybe you should not listen to the guy from the insurance company for advice...his goal is to sell...more the better...

Buyer beware....learn...make good decisions based on your own research, understanding , and logic...


I've had some wonderful service and experiences with insurance companies...but mostly in the field of aviation insurance.....(the airplanes I fix are often covered by insurance...in aviation the claims seem to be settled quickly and fairly).

On the other hand...in car insurance, I have had many bad experiences....I found that State Farm had been overcharging me for many years...I  learned this from an "insider" ...friend's wife who works for them...When confronted, they did lower my premiums...but would not refund previous overcharges....I switched companies....

The few times I had an accident, and went for a settlement...I had to fight tooth and nail to get the money due to me..Even then, the insurance company went to the auto body shop, and beat them up on price...so now I get an inferior repair job!

The Internet is full of horror stories...just do the research!

yes, insurance is a necessary evil....but the consumer needs to be careful...


Cookie

[Malfruen]

I guess I'm lucky for the bike.

My compulsory third party insurance (insurance for pedestrians I hit when I'm riding on the pavement) costs me $180 per year. That doesn't change at all, regardless of capacity or age.

Comprehensive Cover (Fire, Theft, Accident) costs me $145 this year (It actually fell from the $240 it was the previous year because I turned 27, and so I am no longer considered a risk). This price CAN differ with age, capacity, previous history. Since I'm 27 with 10 years experience driving, 4 years riding, on a reasonably powered bike (550cc or under is what they call it), I get 85% off the premium.

It's not all fun and games though. When I first got my license to drive I was quoted $2455 per year for full insurance as a 17 year old with a 30 year old car, which cost me 1300 bucks to buy. They expected me to nearly right the car off twice a year. My current car costs me $800 per year to insure, and that's with the same 85% discount.

[BockinBboy]

I've had great experiences with my insurance company; however I know plenty of people who cannot say that at all with the same company.  I have a good agent who is a family friend for years beyond me though...  I can say that others without this connection have had good experience with same company AND agent

Another direction here: When I was shopping for insurance on my gs, the 'good' insurance companies wanted $1500+ a year for minimum coverage on it. Basically near what the bike was worth per year. Even my aforementioned agent couldn't change that, so I shopped around. Went with progressive. Now that I've have been riding for several years and now over 25, I can get a realistic premium from my regular insurance company.

I'm not sure I understand why minimum coverage is so high for new/young riders on a standard lower cc bike as the GS... Minimum coverage covers other things you damage while on that bike - what damage does a gs do? You aren't plowing into bugattis in street races...

- Bboy

[rg500gamma]

Hi everyone ,  I am 52  perfect driving record have not been to the dmv in 14 years , progressive insurance $ 202.00  a year ,   its  the health insurance that is way to expensive(blue cross)  have no health problems , pass every test , and pay $450.00  x  12  (year)   ,  boy  what a rip off ,  I see  the  porsche  , lamborgini ,  maserati cars  in the  parking lot  at blue cross ..............  I guess  I need  to be  in the insurance business , kind regards  rg500gamma