Duffy: Jevco 2011 changes - sneak preview

[Insurance Guy]

The 2011 rating manual will be out shortly with an effective date of May 1st for new business and June 10th for renewal business. Below are some highlights:

1) An average 7.3% rate increase. This is an average. Some may see a little more and others a little less. Details to follow. Although the increase is not dramatic compared to some of their competitors; if you have a Jevco quote and are ready to proceed with a new policy it may be a good idea to finalize this week and potentially save a few dollars.

2) Good news! No change to the rule that Jevco will provide their Preferred rates to riders licensed for a full year regardless of whether or not they have insured a bike in that year.

3) Introduction of a 5% Loyalty discount for riders that have been insured with Jevco for two years or more.

4) Introduction of a 5% new business stability discount for riders that have been insured with the same motorcycle insurer for the past 24 months.

5) Jevco will now offer up to $2,000,000 liability. This is up from their prior maximum limit of $1,000,000.

6) Individuals that register their bikes in their company name will now be allowed, however no commercial or business use will be permitted.

7) Some Ducati models and the VMAX will be coming off of their sport bike surcharge list. Details to follow.

Introduction of a 5% multi bike discount.

I will try to keep you all informed as I get more details.

[LiNK666]

I'm not with Jevco, but like the changes mostly except for the 7.5% increase

I wonder when the lower ab will finally show lower premiums.

[Insurance Guy]

I'm not with Jevco, but like the changes mostly except for the 7.5% increase

I wonder when the lower ab will finally show lower premiums.

I think we're all hopeful the lower ab limits will actually have some beneficial impact premium wise. The ab changes were implemented for new business last Sept 1st so we really won't know their impact until the end of the riding season.

[shanekingsley]

3) Introduction of a 5% Loyalty discount for riders that have been insured with Jevco for two years or more.

4) Introduction of a 5% new business stability discount for riders that have been insured with the same motorcycle insurer for the past 24 months.

Does this mean that for someone who has been with Jevco for the last 5 years continuously, they are entitled to a 10% reduction - or are these redundant items and it's only a 5% reduction in total?

Also, in noting that Jevco now offers multi-bike discounts of 5% - do they offer any multi-line discounts for house and/or disability/life + bike insurance?

Thanks for the useful information!

[RetroGrouch]

7) Some Ducati models and the VMAX will be coming off of their sport bike surcharge list. Details to follow.

This should be interesting.

[VifferFun]

That's a lot of changes in one rate implementation . . . looks good!

[VifferFun]

I think we're all hopeful the lower ab limits will actually have some beneficial impact premium wise. The ab changes were implemented for new business last Sept 1st so we really won't know their impact until the end of the riding season.

We actually won't know the impact of the Auto Reform until about 3-5 years from now.

[RetroGrouch]

But still no word of moving up the sportbike surcharge exemption year to 1996?

[Alvito]

Thanks for the update. I called yesterday and was quoted 1137 liability only, 1225 for fire and theft and 1441 full coverage with a 250 deductible on a 2008 Ninja 250.

Should I wait until May 1st for everything to be finalized, or will it be possible to get the new number crunch tomorrow?

[VifferFun]

Thanks for the update. I called yesterday and was quoted 1137 liability only, 1225 for fire and theft and 1441 full coverage with a 250 deductible on a 2008 Ninja 250.

Should I wait until May 1st for everything to be finalized, or will it be possible to get the new number crunch tomorrow?

If you already have the Ninja, I suggest you purchase the policy prior to May 1st so that you lock in for a year at the old rates. By doing so, you would save an average of 7% over the next year (depending on how the rate increase has been distributed among the different risk types).

[Insurance Guy]

Does this mean that for someone who has been with Jevco for the last 5 years continuously, they are entitled to a 10% reduction - or are these redundant items and it's only a 5% reduction in total?

Also, in noting that Jevco now offers multi-bike discounts of 5% - do they offer any multi-line discounts for house and/or disability/life + bike insurance?

Thanks for the useful information!

The 5% loyalty discount would apply to those that have had their bike insurance with Jevco for two or more years. It would not become a 10% discount after an extended period.

[Insurance Guy]

But still no word of moving up the sportbike surcharge exemption year to 1996?

No word on this yet. I will confirm as soon as I know.

[Insurance Guy]

If you already have the Ninja, I suggest you purchase the policy prior to May 1st so that you lock in for a year at the old rates. By doing so, you would save an average of 7% over the next year (depending on how the rate increase has been distributed among the different risk types).

The overall average increase will be 7.3%. How that breaks down we do not yet know. My speculation would be that younger more inexperienced riders may see a little more and older more experienced riders a little less than the average. As I mentioned earlier if you are in a position to proceed before May 1st that would likely be a safer bet.

[shanekingsley]

The 5% loyalty discount would apply to those that have had their bike insurance with Jevco for two or more years. It would not become a 10% discount after an extended period.

I don't think I was clear in my original question...so to clarify:

Can the loyalty discount (5%) and the new business stability discount(5%) be added together for a rider that has been with Jevco for more than 2 years AND been with the same motorcycle insurer (Jevco) for more than 24 months based on the info below?

3) Introduction of a 5% Loyalty discount for riders that have been insured with Jevco for two years or more.

4) Introduction of a 5% new business stability discount for riders that have been insured with the same motorcycle insurer for the past 24 months.

I ask because I have been with Jevco for over 5 years continuously which would seem to make me eligible for both discounts. Otherwise it would seem that these two items overlap into redundancy....

Also, any word on multi line-discounts with Jevco? Motorcycle + Life/Disability/Home etc...?

Thanks again.

[gnatwest]

Being effective June for Renewals does this also mean if I renew in May I will lose out on the loyalty discount?

[Aslan]

I'm don't think I was clear in my original question...so to clarify:

Can the loyalty discount (5%) and the new business stabilty discount(5%) be added together for a rider that has been with Jevco for more than 2 years AND been with the same motorcycle insurer (Jevco) for more than 24 months based on the info below?

I ask because I have been with Jevco for over 5 years continuously which would seem to make me eligible for both discounts. Otherwise it would seem that these two items overlap into redundancy....

Although not explicitly stated, I would take the 'new business' part of the '5% new business stability discount' to mean it is only available to new business, therefore giving the same 5% 'discount' to anyone who keeps continuous coverage and doesn't bounce around every year. I agree it seems odd to mention it as two different items though.

What happens after the first year? You suddenly qualify for neither loyalty or stability *boggle*

Is the 7.3? average rate increase calculated before or after the 5% loyalty discount?

[VifferFun]

I don't think I was clear in my original question...so to clarify:

Can the loyalty discount (5%) and the new business stability discount(5%) be added together for a rider that has been with Jevco for more than 2 years AND been with the same motorcycle insurer (Jevco) for more than 24 months based on the info below?


I ask because I have been with Jevco for over 5 years continuously which would seem to make me eligible for both discounts. Otherwise it would seem that these two items overlap into redundancy....

Also, any word on multi line-discounts with Jevco? Motorcycle + Life/Disability/Home etc...?

Thanks again.

I am guessing no. There is overlap, but there isn't redundancy. Studies show that people who persist with the same insurer have better claims experience than people who switch every year. It looks like Jevco is trying to entice clients loyal to other companies by offering a bit of a discount, but they don't want to apply the same discount to people who shop around every year.

[VifferFun]

Although not explicitly stated, I would take the 'new business' part of the '5% new business stability discount' to mean it is only available to new business, therefore giving the same 5% 'discount' to anyone who keeps continuous coverage and doesn't bounce around every year. I agree it seems odd to mention it as two different items though.

What happens after the first year? You suddenly qualify for neither loyalty or stability *boggle*

Yes, I agree that this seems a bit weird.

Is the 7.3? average rate increase calculated before or after the 5% loyalty discount?

After adjusting everyone's rates according to the changes mentioned by Duffy (as well as the changes rating factors that he hasn't specifically mentioned), there will be an average premium increase of 7.3%. If some of the changes are favourable to you, then you will see an increase of less than 7.3%; however, if some of the changes are to your detriment, then you will see an increase of more than 7.3%. The average of the rate changes of ALL policyholders works out to 7.3%.

[ANDRASTA]

yeah thats what I would like to know( 1996 year) as well, that would be great!!

[KJM]

+1 on the 1996 increase please