Motorcycle Insurance in Ontario is racketeering

[theprophecy13]

Public insurance like Alberta would drop the costs significantly. Hopefully that makes it's way to Ontario. Something that saves us a little money rather then gouging us for more...Who's kidding who though insurance costs will probably go up 10% this year.

[misteral]

Public insurance like Alberta would drop the costs significantly. Hopefully that makes it's way to Ontario. Something that saves us a little money rather then gouging us for more...Who's kidding who though insurance costs will probably go up 10% this year.

Check insurance prices in either Manitoba or BC. If prices only went up 10% we'd be lucky.

[VifferFun]

Public insurance like Alberta would drop the costs significantly. Hopefully that makes it's way to Ontario. Something that saves us a little money rather then gouging us for more...Who's kidding who though insurance costs will probably go up 10% this year.

You can't make a statement like that without understanding the regional differences and the insurance mechanism itself.

People who like government insurance are poor risks, because government insurance does not match risk to return. Crappy risks get cheaper premiums, because they are subsidized by the good risks who must pay higher premiums. They can do this because they are a monopoly and don't have to worry about competition or become antiselected for poor risks. In the end, the claims DO NOT CHANGE and the amount of premium required to cover these claims does not change. The only change is the way that premium is being distributed between different risks.

Think of it this way; would you be happy if the banks no longer considered your credit history when applying for a loan? If you answered "yes", then you must have a poor credit history. Suppose that a bank currently gives a loan to a good risk at a rate of 3%, and to a bad risk at a rate of 8%. If they discontinue the use of your credit history when determining your rate, then both the good and bad risks would end up paying about 5.5%. The good risks would be paying higher rate in order to subsidize the poor risks who have a higher rate of default on the loan. This would only work in a monopoly, because otherwise the bank would keep all of their bad risks, and their good risks would move to another company that continues to segregate by credit score.

My company writes optional coverages in Government-run provinces, and we are ALWAYS cheaper. When has the government ever been efficient?

[Insurance-Broker]

Public insurance like Alberta would drop the costs significantly. Hopefully that makes it's way to Ontario. Something that saves us a little money rather then gouging us for more...Who's kidding who though insurance costs will probably go up 10% this year.

That's right. Insurance cost would go up across the board anywhere between 5-10%.

What could help is the current proposal under review to limit certain claims. I say we go like Quebec and limit ab losses.

If people feel that they need more, they can buy a separate policy from a health insurer!

[Platinum Cycle]

I started reading this thread then got bored. I don't know why Viffer gets into a battle of wits with unarmed people.

1) Insurance the in the USA vs Ontario is no comparison. Our accident benefits are among the richest in the world. Ask the guy who becomes a quadraplegic in Buffalo when he wraps his GSXR around a pole how much his insurance company gives him under accident benefits. About $10 000 to $25 000. Here in Ontario $1 MILLION......... But I know, insurance companies screw us here.....yeah right....

2) Public insurance......Peter Kormos and the NDP already tried that. Does anyone really believe the government is more efficient at anything. Holy crap people, give your head a shake. Ask customers in BC, Saskatchewan and Manitoba how they like it. Personally, I like having choice where I shop.

[ninja44]

I'm not sure that I understand your "sports car" scenario. Are you saying that you purchased a higher-risk car and are wondering why your premium is increasing?

It's a sport compact car that was re-classified to a "sports car". It's a $25K domestic compact car and when I had asked for a rate on an 07 Corvette (soon ), it was $50/yr more! This is on a car that costs 3X as much! My premium started out at $1600/yr then the following year jumped to $2100 with the re-classification. I just got my renewal and it has gone up another $240/yr. So what gives? I'm sorry but good drivers are NOT rewarded in this province, we take it in the behind just like everyone else.

[BlackCrowe13]

I am pretty happy with my insurance rates (if the is even possible).. I am brand new in the game and I am paying apx 1500 per year for a 2003 600CC... Some places were quoting me 3-6k for insurance! As many have stated before... State Farm is a life saver, I'd never beable to afford to ride without them.
All Hail the King of insurance for motorcycles!
lol

[Stephany]

I'm currently in the process of moving from Buffalo to Toronto, and got out my current policy in attempts concrete numbers to the thread. I hope to update it with my Canadian policy after I move. (If I can afford to do so. lol )

I'm 26, female, & have never been involved in an accident or made a claim. I've had 1 speeding ticket in 2005 that was long ago & forgotten about until I rec'd a letter this month saying my license was suspended. It was suspended for about a week while I paid up the fees.

I pay:

• $826 U.S. dollars a year for a 99 monte carlo v6 3.1 (~$70/monthly)

I get:

• Bodily Injury & Property Damage = $300,000 Each Accident
• Medical Payments = $10,000 Each Person
• Supplementary Uninsured/Underinsured Motorists = $300,000 Each Person, $300,000 Each Accident
• Collision = Actual Cash Value - $500 Deductible
• Comprehensive = Actual Cash Value - $500 Deductible
• No deductible for glass.
• Towing and Labor Costs are included.
• Rental Reimbursement = $30 per day / $900 maximum
• Mandatory Personal Injury Protection = $50,000 Each Person Each Accident
• Additional Personal Injury Protection = $50,000 Each Person Each Accident
• Optional Basic Economical Loss = $25,000 Each Person Each Accident

I'm not sure if this will translate to you Canadian insurance peeps but it says my "Rating Tier is LVL02"

Discounts are:

• -$6.00 Anti Theft
• -$13.00 Anti Lock Brake
• -$14.00 Passive Restraint (I duct tape all passengers mouths)
• -$25.00 Accident Prevention Course
• -$9.00 Daytime Running Lamps

I have my parents, 32 year old sister, & my 21 year old brother JUST in case they "need" to borrow it for whatever reason - even if it's just taking it to the grocery store because mine is the last one parked in the driveway...

My No Fault Protection is:

• Mandatory Basic Economic Loss = $50,000
• Optional Basic Economic Loss = $25,000
• Additional Personal Injury Protection = $50,000
• Aggregate No Fault Benefits Available = $125,000
• Maximum Monthly Work Loss = $3000
• Other Necessary Expenses (per day) = $50
• Death Benefit = $2000

[VifferFun]

I'm currently in the process of moving from Buffalo to Toronto, and got out my current policy in attempts concrete numbers to the thread. I hope to update it with my Canadian policy after I move. (If I can afford to do so. lol )

I'm 26, female, & have never been involved in an accident or made a claim. I've had 1 speeding ticket in 2005 that was long ago & forgotten about until I rec'd a letter this month saying my license was suspended. It was suspended for about a week while I paid up the fees.

I pay:

• $826 U.S. dollars a year for a 99 monte carlo v6 3.1 (~$70/monthly)

I get:

• Bodily Injury & Property Damage = $300,000 Each Accident
• Medical Payments = $10,000 Each Person
• Supplementary Uninsured/Underinsured Motorists = $300,000 Each Person, $300,000 Each Accident
• Collision = Actual Cash Value - $500 Deductible
• Comprehensive = Actual Cash Value - $500 Deductible
• No deductible for glass.
• Towing and Labor Costs are included.
• Rental Reimbursement = $30 per day / $900 maximum
• Mandatory Personal Injury Protection = $50,000 Each Person Each Accident
• Additional Personal Injury Protection = $50,000 Each Person Each Accident
• Optional Basic Economical Loss = $25,000 Each Person Each Accident

I'm not sure if this will translate to you Canadian insurance peeps but it says my "Rating Tier is LVL02"

Discounts are:

• -$6.00 Anti Theft
• -$13.00 Anti Lock Brake
• -$14.00 Passive Restraint (I duct tape all passengers mouths)
• -$25.00 Accident Prevention Course
• -$9.00 Daytime Running Lamps

I have my parents, 32 year old sister, & my 21 year old brother JUST in case they "need" to borrow it for whatever reason - even if it's just taking it to the grocery store because mine is the last one parked in the driveway...

My No Fault Protection is:

• Mandatory Basic Economic Loss = $50,000
• Optional Basic Economic Loss = $25,000
• Additional Personal Injury Protection = $50,000
• Aggregate No Fault Benefits Available = $125,000
• Maximum Monthly Work Loss = $3000
• Other Necessary Expenses (per day) = $50
• Death Benefit = $2000

Thanks for posting that up

You are essentially paying $930CAD/yr to insure your Monte Carlo, and you are over 25 with a pretty clean record. I find it hard to understand the benefits as you have them laid out, but there are a couple of items that really stand out, namely:

• $300K Liability limit is very low
• $10K maximum for Medical Payments is laughable (this is where the big payments are made in Ontario)

I am also completely unfamiliar with the claims experience in Buffalo, but it could be significantly better or worse than Toronto. Even within Toronto, the accident experience varies drastically based on where you are located within the city (eg. Scarborough is VERY BAD, Richmond Hill is quite good).

Based on your profile and the benefits you are receiving for your premium dollars, I think you might get better bang for your buck here in Ontario. The Monte Carlo is 10 years old and is quite cheap to insure.

[GT_Hawk]

I lived in the Us for 2 years, and even bought a new subaru 2007 2.5i Impretza there. The price of that car in canada is the price of a WRX there. Considering its the same car (besides a sticker over speedo and miles instead of km on the odm) the price diffrence is a compelate joke. I mean 19K out the door vs msrp here of 26k, so ya even cost of a car is VERY diffrent.


but ok its insurence, that Car there cost me for MAX insurence I could get theough AAA about 1300$ a year. In Canada through Co-op again for full coverage costs me 3000$. and to realy tick me off my first renual in canada in in a week and I find they marked me as having 1millin libiliaty when I thought I signed up for 2million so I have been driving around for less then I thought I had so I am also mad on that point. Ok co Co-op not the cheapest raite in town but still this is a fair comparisum to me as hey we are talking voer double for what looks like equivlent insurence.

I understand that insurence companeys need to make cash but really the price diffrence makes me sick as if the Us insurance companeys can make cash with such low raites why cant canadian companeys.

Now thigns liek housing is a difrent story mind you, yes its expensive in GTa, but hey go to some areas of the astates and we start looking cheap for housing. So its location location location. But location should mean we get better raites on Cars to buy them as this area is a centerial hub ie loads of stuff comers here to be distributed across canada. Sicne we are the hub its less shipping costs as its headed here anyway lol.

[VifferFun]

I lived in the Us for 2 years, and even bought a new subaru 2007 2.5i Impretza there. The price of that car in canada is the price of a WRX there. Considering its the same car (besides a sticker over speedo and miles instead of km on the odm) the price diffrence is a compelate joke. I mean 19K out the door vs msrp here of 26k, so ya even cost of a car is VERY diffrent.


but ok its insurence, that Car there cost me for MAX insurence I could get theough AAA about 1300$ a year. In Canada through Co-op again for full coverage costs me 3000$. and to realy tick me off my first renual in canada in in a week and I find they marked me as having 1millin libiliaty when I thought I signed up for 2million so I have been driving around for less then I thought I had so I am also mad on that point. Ok co Co-op not the cheapest raite in town but still this is a fair comparisum to me as hey we are talking voer double for what looks like equivlent insurence.

I understand that insurence companeys need to make cash but really the price diffrence makes me sick as if the Us insurance companeys can make cash with such low raites why cant canadian companeys.

Now thigns liek housing is a difrent story mind you, yes its expensive in GTa, but hey go to some areas of the astates and we start looking cheap for housing. So its location location location. But location should mean we get better raites on Cars to buy them as this area is a centerial hub ie loads of stuff comers here to be distributed across canada. Sicne we are the hub its less shipping costs as its headed here anyway lol.

I have explained regional differences MANY MANY times . . . sorry, but I'm not going to do it again.

Even if you have the exact same coverage, the price can vary drastically from one region to another depending on the claims experience in the region. You have already read my other thread that I just posted that compares regions even within Ontario itself. You should have noticed that there is a BIG difference in Ontario regions, which is especially evident when you compare East and West Brampton which are mere kilometers away.