Heard through an underwriter at Certas and an agent for State Farm that there is a planned rate increase of 45-80% on sport bikes on returning business next year.
This is how it will shake down:
It's no secret that state farm has a disproportionately high amount of SS bikes on the books compared to you know...everyone else.
State Farm will adopt a new, very similar rating system to the rest of the industry on new business next month. This will allow them to bring in a large amount of customers with bikes such as the big Harleys, Goldwings, the big Touring/ADV bikes etc. since their downfall was always the CC based rating system.
This change will rollover into "returning" business come January. The way it was explained to me, customers will see a fluctuation in price of up to 80%.
Yes, 80%.
Now keep in mind that means 80 either direction. The fella with a brand new R1200GS? Very happy man. His rates will likely drop from over $2000 to the triple digits or low 1000s. The guy on the CBR600RR? Not so much.
The reason being that State Farm's competitors are currently quoting around 100% more than them in many cases. One example that was given to me was a 27 year old guy with a clean record on a GSXR750 (he had happened to be in the office earlier). Aviva quoted him just over $3000, Allstate said he wasn't eligible. TD said $4100. Facility is Facility. He insured with State Farm for $1948 a year.
When he renews, State Farm will likely reassess at $2824.60. This is still a competitive price since Aviva comes in at over $3000 and Facility of course is double that.
Now there is of course the chance that none of this will come to be and the status-quo will remain intact. Just wanted to pass on what I heard.
This is how it will shake down:
It's no secret that state farm has a disproportionately high amount of SS bikes on the books compared to you know...everyone else.
State Farm will adopt a new, very similar rating system to the rest of the industry on new business next month. This will allow them to bring in a large amount of customers with bikes such as the big Harleys, Goldwings, the big Touring/ADV bikes etc. since their downfall was always the CC based rating system.
This change will rollover into "returning" business come January. The way it was explained to me, customers will see a fluctuation in price of up to 80%.
Yes, 80%.
Now keep in mind that means 80 either direction. The fella with a brand new R1200GS? Very happy man. His rates will likely drop from over $2000 to the triple digits or low 1000s. The guy on the CBR600RR? Not so much.
The reason being that State Farm's competitors are currently quoting around 100% more than them in many cases. One example that was given to me was a 27 year old guy with a clean record on a GSXR750 (he had happened to be in the office earlier). Aviva quoted him just over $3000, Allstate said he wasn't eligible. TD said $4100. Facility is Facility. He insured with State Farm for $1948 a year.
When he renews, State Farm will likely reassess at $2824.60. This is still a competitive price since Aviva comes in at over $3000 and Facility of course is double that.
Now there is of course the chance that none of this will come to be and the status-quo will remain intact. Just wanted to pass on what I heard.
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