Reporting estimated total annual driving distance (km)?? | GTAMotorcycle.com

Reporting estimated total annual driving distance (km)??

oioioi

oioioi

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Just a quick question about reporting the estimated total annual driving distance for a motorcycle policy?

I was just trying to play around with the online quote tool for TD. I noticed there is a significant difference in the annual premium cost if the estimated total annual driving distance is 1 000 kms vs 5000 kms etc.

I know 5 000 kms is the go to default for brokers and insurance companies. But I am just trying to understand the legalities of selecting one over the other. I am not trying to scam the system. Last thing I would want is to have my policy invalidated and be red flagged because of misrepresentation of information.

So, say that I assume that I will ride the bike for only 1 000 kms annually, but end up riding it for 4 000 or even 12 000 kms.
In the case of filing a claim, would this in any way make the policy void?

What if I choose to go with 5 000 kms but end up riding for 25 000?


I think that it is hard to judge how much any specific person will actually ride the bike. Especially if it is to be ridden for pleasure purposes only and not commuting.
Even more difficult for some who is a beginner or getting back into it after X amount of years and not have any long distance trips planned.


I know there are some smart monkeys here. Let's hear it.
 
Curious about this as well actually. Rode much less last year, this year looks small and with a child on the way, will probably average much less from now on. But I may do some tours and worried about going over as well.
 
When you setup an policy, you attest to a lot of things including your daily commute, another is you annual mileage. You also agree to inform your insurer when anything changes.

My guess is they dig into things based on the possible payout value -- claim a $1000 collision and no injuries they are just going to pay it. Wipe out a $20K bike and spend a week in the hospital might rustle up an investigation as to whether you were truthful. If you lied or failed to update them you face two challenges: 1) Insurance cancellation for misrepresentation, and 2) trouble collecting a payout.

Insurers share info on cancellations and fraud so you can't simply go elsewhere -- this could cost you thousands per year, tens of thousands before it disappears from your insurance record. Is it worth the risk to save a hundo?
 
like MM said
in the case of a substantial claim
they may start digging and look for a way out of paying
not reporting accurate usage could be a way out
 
I guess it would be safe to always over estimate your km's for the given year.

Or provide a reasonable estimate. Reporting 5K and riding 7K will be more accurate than reporting 1K and riding 7K.

Thanx for the input. I will bring up the question with the Insurance when calling to process the policy.
 
I rode ~30,000KM last year.

If I told my insurance company I only rode 1000KM a year just to get a cheaper rate and then had a major accident needing emergency medical care while I was in Wyoming on my MC, do you think they'd have an issue with that?

It's not worth it. If you need that policy for something you don't want to give them an easy out that could save them millions while putting YOU on the hook for it instead.
 
How would the insurance company find out your mileage?
They never asked what my current mileage is.
Service Ontario doesn't require the mileage for your renewal sticker.
I do my own service so there is no reporting of mileage, say like your car which is reported back to insurance from dealers etc.

I am not advocating under reporting just curious how it plays out.
 
According to TD.
"In the case of a total loss, the mechanic may notify the adjuster that the bike has XXXX amount of KMs on it, in which case it could prompt them to look into it a little more"
also
"To be honest with you, we (TD) would never really check how many kms you have on your bike. The purpose of the contract is to be be fair and as honest as possible from both parties. If you report 1000kms total for the season but surpass that half way through, you can update them and they will adjust the premium accordingly" just as "if you report 5000km but only end up riding 2000km they will adjust it as well" (in this case I doubt that they would refund any money"

So, how would the mechanic know how many kms the bike started the season with, or how many kms the rider had reported at the time of renewal. I do not see any mechanic taking his time to report this to the adjuster.

I too am not advocating under reporting or any scamming. I just wanted to be informed on the subject. More of a curiosity thing.

I wonder if everyone on here who is riding 30 000+kms per season is actually reporting that much. :unsure:
 
sburns said:
How would the insurance company find out your mileage?
They never asked what my current mileage is.
Service Ontario doesn't require the mileage for your renewal sticker.
I do my own service so there is no reporting of mileage, say like your car which is reported back to insurance from dealers etc.

I am not advocating under reporting just curious how it plays out.
Click to expand...
Well, the insurance company knew the mileage on the bike when you bought it or started with them. They know how long you have been with them and in most cases could check the odo/ecu after a crash. If the numbers don't add up, it helps their case.
 
GreyGhost said:
Well, the insurance company knew the mileage on the bike when you bought it or started with them.
Click to expand...

How so.
The UVIP doesn't have the kms on it. When I renewed my sticker this year the lady did not ask for the kms on the bike. She filled out the form for me.

They don't ask for kms when starting a new policy. Or do they?
 
oioioi said:
They don't ask for kms when starting a new policy. Or do they?
Click to expand...
I thought they did. My last bike I bought from a dealer so they wanted the invoice to setup the policy. That had mileage on it. Maybe not always? Someone that registers a lot more bikes than me will know better.
 
GreyGhost said:
I thought they did. My last bike I bought from a dealer so they wanted the invoice to setup the policy. That had mileage on it. Maybe not always? Someone that registers a lot more bikes than me will know better.
Click to expand...
The past few moto insurance quotes I got they never asked about mileage.
 
All the insurance companies I've ever dealt with wanted to know the mileage on the bike when I bought it. MTO also requires you write it on the back of the ownership at the time of the transfer a well, so it's on the record. If you then tell them you ride 1000km/year but in year 4 you have a major accident and they see the bike has +75,000KM on it from that number, well, the math is there.

And in the case of a brand new bike, there's a reasonable assumption the mileage is <100KM at the time you put it into your name. Again, if you tell them you only ride 1000km/year and a wreck 5 years later on the same bike then shows an odometer with 25,000km on it, well, again....it doesn't take a rocket surgeon to figure out you misrepresented your policy.
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