Insurance increase for commuting?

[jeffjones]

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So my company moved from a 5km round trip to a 90km round trip.
When I got my insurance I told them I would be doing a under 5km round trip to work, So I would assume I would have to tell them I am commuting now and would my insurance raise because of it and around how much if any knows.

Cheers

 

[CrazyKell]

You wouldn't know until you actually talk to your insurance company, since there are so many other variables.

I'd assume it would raise, but what do I know.

 

[geoff-9]

i work in the beaches, i lived in east york so a 10 minute and 5 km commute, moved to kennedy and 401 so 25 km and 20 minute commute and my insurance went up $500 (1700 to 2200) on my truck. bought insurance in feb so it could have also been a part of the general insurance hike that occurred in the summer.

 

[VifferFun]

This is known as the "Use" rating variable with levels like the following:

Pleasure
Work Distance A to B
Work Distance B to C
Work Distance C to D
etc.

This is more commonly used in rating CARS for insurance, and I haven't heard of it being used for motorcycles (although that doesn't mean that all insurers don't use it). It can affect your CAR insurance rates quite substantially. In all likelihood, it won't affect your motorcycle rate.

 

[m.breen]

I used to commute 40 km's to work, I recently moved, so that I was 5 km's from work and my premiums went up by over $10 per month. They claim it is the area I live in now (Bathurst & Finch). So I move 35 km's closer to work and 'cause nobody in this neighborhood knows what a stop sign is my rates go up!!! Thanks oh stupid neighbors.

 

[VifferFun]

I used to commute 40 km's to work, I recently moved, so that I was 5 km's from work and my premiums went up by over $10 per month. They claim it is the area I live in now (Bathurst & Finch). So I move 35 km's closer to work and 'cause nobody in this neighborhood knows what a stop sign is my rates go up!!! Thanks oh stupid neighbors.

Both Territory and Use are rating variables. It's possible that the negative effect of one variable will offset the positive effect of the other.

eg.

BEFORE:
Territory 1 Factor: 0.80
40km Commute Factor: 1.20

AFTER:
Territory 2 Factor: 1.25
5km Commute Factor: 0.80

In this situation, you will see a premium increase by moving 35kms closer to work. The increase is:

(1.25*0.80) / (0.80*1.20) - 1
= 4.2%

 

[m.breen]

Exactly.

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