2025 Insurance quote reality check please

[Evoex]

My insurance dose not allow anyone under 25 to drive my stuff.
This is a random Reddit. So I'm not the only one .View attachment 74981

Again i've never read this in the small print, but i don't completely doubt it...as far as i know you can hand the keys to any rider with a valid license.

Can you copy paste the blurb in your policy?

 

[ddv]

Update: My son phoned around and managed to find something a little more reasonable -- $2800 (Dejardins). Same rider on a Honda 125 would be $1000 less -- about the cost of a used Honda 125.

That said, we live in the north. Hwy 11 is the essential lifeline to anywhere and the speed limit is 110kph. Not sure a 125 would cut it. Maybe downhill with a tailwind, but one would be flogging the heck out of it on the uphill grades. I rather he has enough power to keep up with the other traffic for safety.

Thanks for all your comments and suggestions.

 

[ddv]

Your insurance will not cover anyone under 25 unless specified. He may have been riding your bike uninsured.

Actually I had that specific discussion with the insurance company rep last fall (when they refused to add him to the policy because he didn't live with me). They were quite clear that they were fine with him borrowing it and it would still be fully covered -- however, if he had an accident it would count against MY insurance record because he did not have a separate policy of his own.

That said, I have certainly heard of such exclusions. I think one of my past automobile policies had that restriction. It seems to me I had to change carriers once my (then) teenage kids started driving.

 

[ddv]

If your Grandson was in the UK he would be limited to 14 hp or a max of 125cc, at the age of 19 he could upgrade to something under 50hp.

That's why an old skool Maxim is $7k a year over here for a 18yr old.

My advice, buy him a dirt bike or a track bike instead of making the insurance companies rich.g

I have heard that graduated HP ratings is pretty common in European jurisdictions and that one can buy restrictors to limit HP on some bikes to keep it legal. I didn't realize there was also a displacement restriction. Probably works well for urban areas and alternate routes with lower speed limits. We don't have power or displacement limits but new riders are limited to secondary highways with lower speed limits -- in Southern Ontario where there are alternative routes available. A bit different north of, say, Gravenhurst, where it might be hundreds of kms to the next road. New riders are exempted from the speed restrictions on such roads because there is no alternative.

 

[Priller]

Don't confuse rebates from a government entity with economic reality. Insurance needs to be revenue neutral. Some years ICBC loses more than $1B. Being a public entity does bring a better spotlight to finances though. Both systems have the problem of no incentive to fight fraud as fraud increases expenses and they are allowed to pass expenses plus overhead to the policy holders. The more fraud, the more overhead collected that they can blow.

https://www.fraserinstitute.org/sites/default/files/decline-and-fall-of-ICBC.pdf

The whole point of the rebate is that they do break even. Unlike the Dougie Bucks, it is essentially a refund when revenue exceeds forecasts.

Also, that paper is a) from the Fraser Institute, and b) from 2018.

But yes, the big problem in all cases is there is minimal incentive to root out the parasites attached to the business when you can just charge more. A while back my father went to replace a windshield (in Ontario). When the autoglass place found out he was paying, not insurance, the price dropped by half. Look at the hilarious amounts paid to autobody shops for the most basic dings and the endless insurance fraud associated with medical expenses.

 

[Mad Mike]

Update: My son phoned around and managed to find something a little more reasonable -- $2800 (Dejardins). Same rider on a Honda 125 would be $1000 less -- about the cost of a used Honda 125.

That said, we live in the north. Hwy 11 is the essential lifeline to anywhere and the speed limit is 110kph. Not sure a 125 would cut it. Maybe downhill with a tailwind, but one would be flogging the heck out of it on the uphill grades. I rather he has enough power to keep up with the other traffic for safety.

Thanks for all your comments and suggestions.

A 125 will be the same as a 250. I live in the North during the summer, my DL 650 costs me under $600 (200 cheaper than Toronto rates) and my DT250 costs me under $300.

Desjardins is likely the best, but if you're in the North, call a nearby Brokerlink office, they will likely beat Desjardins.

 

[Evoex]

Actually I had that specific discussion with the insurance company rep last fall (when they refused to add him to the policy because he didn't live with me). They were quite clear that they were fine with him borrowing it and it would still be fully covered -- however, if he had an accident it would count against MY insurance record because he did not have a separate policy of his own.

That said, I have certainly heard of such exclusions. I think one of my past automobile policies had that restriction. It seems to me I had to change carriers once my (then) teenage kids started driving.

Correct, insurance follows the vehicle. If you loan out your vehicle you take the risk of your policy getting affected.

 

[BigEvilDoer]

My 18 y.o, grandson got his M2 after taking the course last August. He's borrowed one of my bikes from time to time since, but my insurance company would not list him on the policy because he doesn't live in my household. He has 1 speeding ticket, no claims, no accidents. He lives in a rural area, does not own a car or a house.

I've recently acquired a bike for him -- nothing fancy or sporty, a 1982 750 Maxim, but very well kept and in great condition. A few minor things (fork seals, brake pads and lines, fluid changes, etc.) needed attention and I had it safetied this morning. He's at work, so I jumped on-line for a couple of quotes, inputting his data as above.

$7,641 per year. Basic coverage -- no comp, no collision. From the website of a well-known site sponsor. And that was the cheaper of the two! I don't pay anywhere near that to insure 3 motorcycles, 2 cars, a truck, a tractor and a house. Is this really representative of what new riders are being charged for basic MC insurance???

Ok, I'm old. I've been riding a while now. When I started riding insurance cost me $75/year, which was cheaper than the Uninsured Motorist Fund fee back when automobile insurance was optional. I understand things are more expensive now. But a 10,000% increase in 50 years? Really?

I always tell my students to get the email addresses of 10 different agents and brokers from different companies.
Write up an email.
Include everything that will be insured - house, car, bike, snowmobile, trailer, whatever.
House - include if it’s paid or not, when roof, furnace, a/c was replaced. How finished basement is, and what year the home was built.
Insert Driver’s License number here.
Car - include year, model, VIN (Super important) what you use it for (work, pleasure only, etc), how many KM per year you drive, purchase price. Liability, etc etc etc
Bike - Car - include year, model, VIN (Super important) what you use it for (work, pleasure only, etc), how many KM per year you drive, purchase price. Liability, etc etc etc

Here’s the key point: Email it from one personal account to another, and BCC all of the insurance contacts.
Let them fight for you business by giving best quotes.

 

[ddv]

Interesting approach. I've heard similar suggestions when buying a new car.

Unfortunately in this case the kid lives at home and has no car, snowmobile, boat, trailer, dependents etc. so no other insurance needs. Kind of limits how creative a broker can be.

 

[BigEvilDoer]

Interesting approach. I've heard similar suggestions when buying a new car.

Unfortunately in this case the kid lives at home and has no car, snowmobile, boat, trailer, dependents etc. so no other insurance needs. Kind of limits how creative a broker can be.

Find something else to add in... renter's insurance or room insurance.. something like that.

 

[Jay Alexander]

Interesting approach. I've heard similar suggestions when buying a new car.

Unfortunately in this case the kid lives at home and has no car, snowmobile, boat, trailer, dependents etc. so no other insurance needs. Kind of limits how creative a broker can be.

They can often bundle with their parents' insurance. If they have cars/home, it can drastically reduce the price.