Outrageous Insurance Hike.... Did nothing wrong.

[ThrottleThrow]

so currently I am with Primumm Insurance. With a 04 Kat 600. I am 22 had motorcycle course done last season, no infractions, 2 bikes no claims over the season. so naturally my insurance should be going down

I called a few months ago to see how much my insurance will be after i renew my policy, i was told around 1600 dollars. that seems reasonable as its a bit cheaper then last year.

Today I call, because i may be upgrading and they give me an outrageous price on a bike i was thinking of getting, way above what i was quoted on a year ago looking at the very same bike. so i proceeded to ask what it will cost to insure my katana again for the season, and she says premiums have gone sky high. that it now costs me 3100

now i dont understand how my isurance can skyrocket from 1600-3100 in the span of a few months, naturaly i got upset hung up, realized i should call back maybe she made a mistake but i talked to a very helpful employee and he told me that hes lost dozens of customers in the last few weeks because insurance has become unfordable. he was a rider him self and couldt belive how much premiums have gone up for his customers

either i pay these outrageous prices or wait until may 28th (a year after m1 license) and they insurance will finally be affordable with Jevco. but primimm looks to be screwing me over

any thoughts?

[inreb]

any thoughts?

Makes you wonder what's going on. I got my renewel a month ago (same company) hardly increased at all. I have home and auto there too. I wonder if that plays into it?

Could they be making up overall "losses" by picking on a certain demographic?

[mike100]

Could they be making up overall "losses" by picking on a certain demographic?

Sounds like that is what they are doing, my TD/Prim insurance renewal just came in and there was a minimal increase.

[TwistedKestrel]

You definitely need to talk to your agent again and find out the details. It could just be a mistake. Worse, you might have a bogus Autoplus report or driver's abstract - fixable, but requires a lot of phonecalls.

I'm really surprised Primmum gave you a reasonable rate in the first place, though. They typically quote young drivers/riders very high.

[ThrottleThrow]

i talked to the one agent after my initial agent and right off the bat he was like "oh no that can't be right" and he couldn't believe it himself, he promised me he tried every possible angle and he couldnt figure out why it had changed so drastically, he was even telling me as a fellow rider to just get off the insurance and go else where. which i obviously have to do but jevco is still quoting me at like 2300 bucks until the end of may when it will go down which is still ridiculous considering what i was paying before. but i guess I dont have a choice, the actions of others apparently affect me even though on paper, I am a good driver with a season of experience under my belt, and yet i get punished.

i guess there are to many 22 year old idiots out there driving 600cc Sport-Tourings, and ruining it for everyone else, i am already angry enough i cant drive a ss until I am 25 now this lol

[Shane McCarthy]

either i pay these outrageous prices or wait until may 28th (a year after m1 license) and they insurance will finally be affordable with Jevco. but primimm looks to be screwing me over
any thoughts?

If those rates are correct you would definitely be better off going with Jevco. Even if you switched now, it would be cheaper then 3100 for the year. However, since these are yearly policies you are best to wait until May 28th, and then make the switch.

[adri]

Primmum lol. I first started riding in 2007 as a teen on a 50cc scooter for about $400/year. Now I'm 22 as well, and primmum wants $1,100 for me on the same bike.

You're getting screwed because you're young, inexperienced, riding a big bike, and the insurance company you're looking at isn't a good fit for you.

[VifferFun]

I'm really surprised Primmum gave you a reasonable rate in the first place, though. They typically quote young drivers/riders very high.

I'm surprised by the low premium the OP was originally paying with Primmum as well . . . it seems too low for a 650CC bike for someone who is 22yo.

Insurance companies adjust rating factors all of the time, meaning that while certain demographics may see an increase, while other demographics may see increases/decreases of varying magnitude. For example, even though your Primmum premium increased by ~100%, other Primmum policyholders may have seen a decrease of, say, 5%. Usually, the overall premium taken in by the insurer remains constant, but the amount that each policyholder contributes to the pool is shifted. Insurance companies make these adjustments so that they can increase the premiums paid by people most likely to file an at-fault claim, and decrease the premiums paid by people who are not likely to file an at-fault claim.

With all that being said, insurance companies often cap the premium increases to a certain amount (usually 10%) so that people don't see a sudden (and huge) increase like the OP is reporting. Based on the feedback in the thread, it sounds like Primmum might have drastically increased rates for people under 25yo and didn't cap the increases.

[ThrottleThrow]

What if i was to get a policy with Primmum, Starting in April. and then cancel it in June. and go with Jevco for the rest of the year. is that possible? or will i be facing severe consequences if i go that route. its looking like the only way to do it as i need to be riding once the snow clears, my bike is currently my only method of transportation besides transit.

[VifferFun]

What if i was to get a policy with Primmum, Starting in April. and then cancel it in June. and go with Jevco for the rest of the year. is that possible? or will i be facing severe consequences if i go that route. its looking like the only way to do it as i need to be riding once the snow clears, my bike is currently my only method of transportation besides transit.

April 1 to Jun 30 should be enough that you have surpassed the minimum retained premium. I don't see what would stop you.

FYI:
http://www.gtamotorcycle.com/vbforum...Penalty-Refund

[ThrottleThrow]

April 1 to Jun 30 should be enough that you have surpassed the minimum retained premium. I don't see what would stop you.

FYI:
http://www.gtamotorcycle.com/vbforum...Penalty-Refund

so you think i should be fine if i go with Primmum April 1st - June1st and cancel. then switch to Jevco, for the rest of the season? i dont want to be stuck with paying the remaininhg premium on Primmum or something, ill be screwed

[250R-ICE]

Something isn't there/ I just got my renewal and my insurance just dropped $200.00. I think the reason is because of the new insurance rules which have reduced our benefits. I'm with Meloch Monex which is also operated by TD Insurance (Primium).

Ask why exactly your insurance went up if your benifits have been reduced.

[VifferFun]

so you think i should be fine if i go with Primmum April 1st - June1st and cancel. then switch to Jevco, for the rest of the season? i dont want to be stuck with paying the remaininhg premium on Primmum or something, ill be screwed

If you are only going until June 1st (i.e. two months) that's pretty short -- you might not have paid your minimum retained premium by that point. You should call TD and ask what their minimum retained premium is (or maybe someone else on the board can find the amount in their documentation).

[bocutter]

Does the minimum retained premium apply? He'll be renewing a standing policy on April 1.

[ThrottleThrow]

what is a minimum retained premium?

[adri]

Cost of ending a policy early. Portion of your premium that is retained.

[Nyx13]

I would be calling around in the meantime to see what other rates you can find. I actually had a broker tell me the Jevco rate was crazy when I was looking for my bike insurance. I ended up with State Farm and nothing else was close. However, there are quite a few companies out there, maybe you'll luck out with a little digging. Try Home for Chrome, Mantha, State Farm, etc. See what's what before running back to bend over for Primmum... BTW, do you realise if Jevco considers your Katana a sport bike they add on a 300% surcharge?

[VifferFun]

BTW, do you realise if Jevco considers your Katana a sport bike they add on a 300% surcharge?

I don't think that Jevco surcharges the Katana:

http://www.ontariomotorcycleinsurance.com/

[tyrn]

Just wanted to chime in that I'm in the same boat as OP. 23 yrs old, one year experience, quote jumped from $1600 last year to $2400 for a SV650 with Meloche Monnex (TD). Seems like our demographic got hit hard on 600cc sport tourers. For comparisons sake, insurance for me on a GS500 only went up 20% compared to the 50% increase on the SV650.

Something isn't there/ I just got my renewal and my insurance just dropped $200.00. I think the reason is because of the new insurance rules which have reduced our benefits. I'm with Meloch Monex which is also operated by TD Insurance (Primium).

Ask why exactly your insurance went up if your benifits have been reduced.

Age?

[mobilus]

any thoughts?

The money an insurance company collects through policies is called their "float." In any given year, there's a time lapse between what they collect and what that pay out. The float is the money they're holding that hasn't been paid out through claims. That money doesn't sit in a bank account, the insurance company invests it in a multitude of ways/places: bonds, stocks, funds, etc. When their investments are profitable, your rates will remain fairly constant. If/when they lose their float money through bad investments/stock choices, they come to the policy holders to make up the difference. Insurance companies are allowed a certain annual profit margin, and if they blow their profits in other places, policy holders get to pay twice, so to speak.