Why are insurance quotes not based on at fault claim amounts?

[VifferFun]

I remember thinking similar questions many moons ago after a 0% fault claim.

The short answer is that your insurance rate has nothing to do with how much you have put in, or taken out of some mythical kitty in the past. The fact that you have made a claim, statistically speaking, says that you are more likely to make one in the future so you get packaged into a rate group with riskier/worse/whatever people.

Sure, it sucks that rates can't be based on how defensively you drive, deep knowledge of traffic patterns, fitness, ability to heal, ability to minimize personal injury with cat like reflexes, instincts to reduce property damage during a collision, and so on and so forth... They just go with what they can see on paper. Of course, they also don't know much about the other party who may be involved in a theoretical future claim, just that it will more likely be in your territory, and statistically like past claims in that territory.

Personally, I think anyone who has made a claim will learn from the experience and get better, but I'm probably just projecting.

Well said

[油井緋色]

What countries have you got quotes for? Revrandy just came back from California and his insurance is cheaper in Ontario.

As an Aside, I had an offer in Silicon Valkey last year (Palo Alto), you might want to check what rent costs there!! The average house price is $1.6 million.

For quotes: was referring to JPN, TW, KR and China...though I'd NEVER live in China.

As for the rent costs: I don't need to worry because I have a really nice family tree.

[Dresden]

Not sure what you're talking about -- that has nothing to do with fastar1's post.

I was "+1" Fastar1 .. the rest was towards the OP.

[revrandy]

What countries have you got quotes for? Revrandy just came back from California and his insurance is cheaper in Ontario.

That is correct. We were in Orange County and my insurance there was $200 a year more for the same bike, with less coverage. Here I have $1M coverage, there I only had $350K. My insurance in South Carolina was cheaper than Ontario, but only by $100 or so.

Yes you can get $100/yr insurance in the U.S. but it is $15K coverage, no liability, no comp etc. Not really worth it.

[turbodish]

Sure, it sucks that rates can't be based on how defensively you drive, deep knowledge of traffic patterns, fitness, ability to heal, ability to minimize personal injury with cat like reflexes, instincts to reduce property damage during a collision, and so on and so forth... They just go with what they can see on paper.

There is an alternative that uses analysis of your current driving patterns instead of just relying on your demographic and personal driving history. Of course that may work to the detriment of some here.

http://www.moneysense.ca/2012/02/01/...ave-you-money/

[murf]

For quotes: was referring to JPN, TW, KR and China...though I'd NEVER live in China.

As for the rent costs: I don't need to worry because I have a really nice family tree.

Maybe getting a quote for where you want to live may be more relevant? See Revrandys post above.
Plus, it sounds like silicon Valley is going to be beating your door down with job offers and big $$, does insurance cost really matter?

[Nixel]

Maybe getting a quote for where you want to live may be more relevant? See Revrandys post above.
Plus, it sounds like silicon Valley is going to be beating your door down with job offers and big $$, does insurance cost really matter?

He's got this heirloom spruce in the valley. No worries!

[iFly55]

That is correct. We were in Orange County and my insurance there was $200 a year more for the same bike, with less coverage. Here I have $1M coverage, there I only had $350K. My insurance in South Carolina was cheaper than Ontario, but only by $100 or so.

Yes you can get $100/yr insurance in the U.S. but it is $15K coverage, no liability, no comp etc. Not really worth it.

Drivers in Ontario would happily pay for the absolute cheapest insurance, even if it meant getting something that's $100/yr with 15k coverage, we would see a line up of drivers opting out of Accident Benefits to save on premiums

hell... if we were legally allowed to drive w/o insurance they would pick that option in a heartbeat

in our pursuit to be stingy penny-pinchers we quickly loose sight of the bigger picture

[VifferFun]

Drivers in Ontario would happily pay for the absolute cheapest insurance, even if it meant getting something that's $100/yr with 15k coverage, we would see a line up of drivers opting out of Accident Benefits to save on premiums

hell... if we were legally allowed to drive w/o insurance they would pick that option in a heartbeat

in our pursuit to be stingy penny-pinchers we quickly loose sight of the bigger picture

Suppose insurance wasn't mandatory in Ontario. What would happen? Well, suppose you forgo insurance and someone smokes your bike and seriously injures you with permanent damages that will cost about $750K in medical costs. You sue the at-fault uninsured operator who has about $25K in assets. You clean him out, win $25K, but are still $725K short. Where does this money come from? We can't just leave you to rot on the pavement. Do you suggest that your medical bills should be paid by the public (i.e. increasing taxes so that they public can afford to compensate auto injuries)?

The financial responsibility laws are in place for very good reasons. I would not be on the road without these laws.

[GYMPY]

Viffer Fun. In the State of Florida, Motorcycle insurance is not nescessary at all. Neither are helmets. You can buy a brand new bike of any make you want and need not insure it for the road. There are thousands of uninsured bikes down there. What happens is you sue the person who hit you. Lawyers are a dime a dozen and you spend most of the nite listening to their commercials on TV.

Insurance companies cry that medical cost are high in Ontario. What a laugh, you should see what medical care cost in Florida are. Example, Last year I got bit by some insect in Florida and I had a major reaction to the venom. I went to the hospital and was there for four hours. Did not see a doctor but a nurse practicianer only. Went up and took a scan of some kind to check for blood cloths in my foot. Took blood test etc. For four hours in that hospital, my bill was just under four thousand dollars when the hospital gave it to me. I finally got just repayment from my medical insurance company I had. I was happier than thou to submit that bill to them. Made me feel good. Wonder what we would be paying if the insurance industry had to pay those rates for medical care here in Ontario after an injury happen in a car accident. They have bargain rates here but blow it out of proportion. Again, the general public does not know that and the industry will not tell them.

[Corey McNeely]

They actually do pay large rates like that. Assessment costs are very high as are treatments. Treaments can last years which only increases cost. Those medical costs you paid in the US as the similar in Ontario, we have OHIP which pays for it.