Usage based insurance

[swbarnett]

Yes, but they still do this in the same year. No difference in risk whatsoever from an insurer's point of view.

I know, the actual risk may be lower but the insurancies companies don't care. All they see are numbers, not how good a rider you may or may not be.

Neither should they care about any aspect of an individual's risk profile. The purest form of insurance that exists is in the Amish communities and the like. Their is no insurance in the modern sence but if a barn burns down the entire community gives what they can to rebuild it at almost no cost to the owner.

[superman]

@ 30% cheaper.
NO WAY IN HELL

@ 80% cheaper it would be worth my time.

Some food for thought. WAAAAAY back in 1999 my 3rd party insurance (for any motorbike) was $19 / year
I was only 19 years old (i think I fail at maths), and I was on my learners. Admittedly my excess was a whopping $1500. But still $20 3rd party cover. I can't even get a ACC brochure for that price now days. And that was only 12 years ago.

Mines $45 per year 3rd party cover. As a 19 year old male I was pretty happy be interesting to see what that changes to when I eventually upgrade the cc rating in a year or so. And my excess is $800! So good deals are still around, just got to look.

[pritch]

Having done close on 10,000 Ks in the last three months I don't currently find usage based policies an attractive proposition. Funny that...

[Gremlin]

Having done close on 10,000 Ks in the last three months I don't currently find usage based policies an attractive proposition. Funny that...

hmmm. I agree. 10k in 1.5 months when I first bought the bike. Then a slight woopsy

Last 2 months I've barely seen it... usage would work well for that

[Smifffy]

hmmm. I agree. 10k in 1.5 months when I first bought the bike. Then a slight woopsy

Last 2 months I've barely seen it... usage would work well for that

Is it still off the road? I thought the damage was not so bad?

[Gremlin]

Is it still off the road? I thought the damage was not so bad?

Needs to be actually IN the workshop to get the stuff fitted... they're trying to clear a backlog of work for which they will actually be paid this month. Mine is apparently up next week... they estimate 3 days putting it back together...

funny... only took me a few secs to pull apart

[celtickiwi]

couple of things to take into consideration
1 insurance is COMPULSARY in the uk and many parts of europe,i.e if you drive you must have it if you want to stay legal....and insurance companies know this$$$$$

2 does someone that only does 5000 kms a year compared to someone that does 50000kms a year automatically become less of a risk because they do less miles,some might argue they are also less experienced.

3 insurance companies WILL use the data available to them to wriggle out of a claim if they can prove you were breaking the law.

[p.dath]

2 does someone that only does 5000 kms a year compared to someone that does 50000kms a year automatically become less of a risk because they do less miles,some might argue they are also less experienced.

Pretty much, yes. There is not only the risk they themselves pose, but the risk they are exposed to simply by being on a public road.

3 insurance companies WILL use the data available to them to wriggle out of a claim if they can prove you were breaking the law.

Probably easier to choose not to deliberately break the law?

Remember, the law pretty much says an insurance claim cant be declined unless the "broken law" contributed to the cause of the accident.

[bogan]

Pretty much, yes. There is not only the risk they themselves pose, but the risk they are exposed to simply by being on a public road.

An experienced rider is more likely to reduce the risk they are exposed to as well. Are the km allowances sold in flat rate or is the first 5000km more expensive than than the 20000-25000km block?

[p.dath]

An experienced rider is more likely to reduce the risk they are exposed to as well. Are the km allowances sold in flat rate or is the first 5000km more expensive than than the 20000-25000km block?

As I understand it, you put $x into your account. The insurer might for example charge you:

* $a/km between 8am and 10pm, $b/km at other times
* 10% additional when travelling in an urban area
* 10% additional if regularly accelerating or braking more than y 'G's.

You get the idea? The insurer publishes a rate card, and your fee varies on how you use the vehicle/bike. Different insurers have different rate cards. Some only charge on distance. Some charge on other factors.

[Smifffy]

As I understand it, you put $x into your account. The insurer might for example charge you:

* $a/km between 8am and 10pm, $b/km at other times
* 10% additional when travelling in an urban area
* 10% additional if regularly accelerating or braking more than y 'G's.

You get the idea? The insurer publishes a rate card, and your fee varies on how you use the vehicle/bike. Different insurers have different rate cards. Some only charge on distance. Some charge on other factors.

I probably wouldn't buy it.

[Little Miss Trouble]

I came across something recent which I had never heard of - usage based insurance. Apparently it seems quite big in the US and Europe.
http://en.wikipedia.org/wiki/Usage-based_insurance

Basically the idea is you give up a little bit of a privacy and the insurance company fits a monitoring device to the bike/car being insured. You then get an account a bit like a pre-pay phone. You put money in it, and insuance gets deducted based on your usage.
Many of the companies simply charge by kilometres driven. If you you don't drive/ride much, your insurance is much cheaper. This could be a great option for those that have a second road bike/car, etc.

Now I mentioned that word privacy. Some of the devices can also monitor the way you drive/ride, and the insurance charges vary based on this. Some also include a GPS, and the charge can also vary based on the time of the day and where you take the bike/car. Those that accelerate/brake hard could be charged more than those that go gently, as well. It's up to the insurer offering the policy as to what weightings they want to put on what factors.
And the insurance is charged for weekly/monthly, rather than annually.

Apart from valuing my privacy way too much to buy into any such scheme that monitors where and when I chose to ride, I ride a 120hp fucking sprotsbike, spirited riding is why I brought the damned thing!

[skinman]

and if like me you ride every day clocking up 260km per week minimum the bill would horrible compared to someone who only rode on the occasional fine day even if they had a 200hp monster & rode it like rossi

[rocketman1]

[QUOTE=p.dath;1130045773]I came across something recent which I had never heard of - usage based insurance. Apparently it seems quite big in the US and Europe.
http://en.wikipedia.org/wiki/Usage-based_insurance

I can see the cops getting onto this and 20 years down the track it will be compulsory on all bikes, speed anywhere any you will receive an automatic ticket in the mail. Big brother will be watching and one day I'm sure it will happen.
That's bureaucracy
Don't invite it.