On the phone with TD today I was informed mileage is now used in the formula to determine rates. I always thought it was because, every time I switch bikes around, mileage is a standard question. So how does that work? Are there brackets? What if you go beyond your predicted mileage? Etc.
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Mileage per year?
- Thread starter inreb
- Start date
They do use mileage to calculate rates, but also want to know if those miles are for pleasure and touring or what percent would be from commuting. Over the past few days I've been shopping around for new insurance and I get the question every time. Funny thing was the other day when asked I said that I put about 7000 km per season the rep was surprised. When I asked why he said that that was very high, that for most of the quotes he was preparing people where saying 1500 -3000 km per year. I ride whenever I can and for the price of insurance I want to get the most out of my riding season. I start in early April and ride until it snows. I didn't have the heart to tell him the truth that last season I did over 9000 km.
I'm not a legal beagle so I don't know the culpability issues in regards to massaging, and that's being generous, the truth. What if you claim to commute to church on Sundays but are caught in a youtubed fireball in Alaska? Where is this heading? If everybody saying 1500-3000kms per year becomes the baseline what will that do to insurance rates at 10,000-20,000kms in the future? It seems the more they can pin you on, modifications(what is and is not a modification?) and mileage, to put the onus on you so that premiums flow one way but not back to the claimant when needed. You don't even have to be that smart to figure out in the long run motoring will be ever more restrictive and expensive with rules designed for the sole purpose of increasing premiums and reducing pay outs. Like the current E.I. system.
So the question remains, let's say you spontaneously decide to do a Wawa loop which could theoretically put you over an unknown mileage threshold, do you need to notify Ins. Co. or will a claim be comprimised?
to be honest i dont know, but if i remember correctly they only ask you the km of your vehicle when applying for new insurance. dont think they'll know what you got in the event of having to make a claim
They generally ask what is the "average" kms you drive/ride per year. I said less than 12,000 km. A few seasons ago I was averaging 30,000 km, then I got my current bike I have put about 28,000 km on it in three seasons now. They would never be able to say you "exceeded your kms therefore claim denied" as it is not a hard and fast number given. I always say my bike is used for pleasure. Now when I had my last claim when I was hit I was on y way to work... BUT I also had a nap sack on the back, because I was leaving at noon that day for a trip to New Liskeard. So technically I was still riding for pleasure.
Suppose in the case of an accident they'd figure it out pretty quick when they checked your stated miles per year vs what the odometer showed...assuming they knew where it started. Which is another question in itself, I guess, but since you're supposed to supply a current odo reading every year when you renew your sticker there is some trail I guess.
I'm amazed at the low KM's they figure for the average. I had a fellow club member tell me that was also told by TD (when questioning his recent jack, as with most TD customers) that "2000K/year is about the average we go on". He rode about 30K last year he said, IIRC and the TD rep about lost his mind when he heard that.. Needless to say he's switching insurers.
Hell, I rode nearly 3000K between October and Christmas Day.
I don't think a typical insurance adjuster would go to the trouble to investigate all of that. I always tell the MTO a lower number when I register too lol
For E.I. you used to have to go in and fill out forms listing where you applied for work. Now you just email them in that you're not working, and don't even have to look. How does that reduce payouts?
For insurance it depends on what the numbers show.
If those claiming more miles have less claims then premiums could go down for them.
Let's forget for a moment that EI is another form of taxation because they flip the profits, yes the profits, back into general coffers. EI was originally intended to be a balanced system. The reason that EI profits have steadily increased over the decades since it was introduced is because they can juggle the premiums, qualifications and payouts at will. And they have, to the workers detriment.
Your second claim makes about as much sense as claiming a tracking device will always assure lower rates.
conundrum
Well-known member
I think last time I checked this they only really cared how many km in to work each day...I know they said even 10km vs 20km makes a noticeable difference in rates. For mileage, I think I said either 5,000km or 10,000km...I believe it is the latter since it didn't affect my rate at all (typically I'll do 5,000km-7,000km or so in a season).
Last week I cancelled one bike and this Monday will see an agent in person about the other one. This mileage issue will be dealt with, not just verbally but I want to see something on paper. A chart perhaps? I hate floundering around in the dark, navigating by assumptions.
How does that affect insurance? Cancelling one bike, when you have more than one? Can they come back and say that you didn't have continued coverage?
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I wonder if this is the actual km to and from work? What I mean by this is: many of us have said it takes XX time to get home from work in the cage, but it takes XXXX time on the bike, as we take the Longo way home. Does that extra riding now become leisure? Similar to the point @hedo2002 made, he went to work, but was leaving for a trip afterwards.
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Yeah, been wondering the same. Technically, I go for a 30-40 min joyride every morning before work, then I park at work, which is 1.5km away from home. Pretty sure I'm in the clear, if only in a loopholey kind of way.
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