Insurance renewal time

[emptysea]

Yes, at least in the US (and it sounds like in Canada), vehicle insurance rates have declined as a result of the decreased vehicle usage during the pandemic. Most major insurers sent out premium rebates, marketed as "Covid Relief" or some similar catchphrase. Some also adjusted their renewal pricing downward, predicting continued reduced vehicle usage throughout 2020 and 2021. It takes months of real actuarial work for a company to estimate its "rate need" for the next year and most of that work is an analysis of and reaction to prior year results.

It would have been a random guess to predict the pandemic in the Q3 of 2019 or even through most of Q1 in 2020 and, even if they were very certain that a pandemic was coming, it would have been very difficult to predict that businesses and schools would be shut down for months. So, "why didn't they just lower rates?" Because they couldn't push a rate change through the insurance regulators fast enough because they would be operating on a guess. What they did instead was to say "Look. We need to do something fast and meaningful. We THINK we can justify a rate decrease in the future, so lets bet on that and 'front load' that decrease in the form of a rebate right now" And that's what most carriers did. Some have also filed for rate reductions for 2021 and will likely discontinue the "Covid Relief" rebates since they feel that they are getting the correct rate for risk with the new rate filings.

So, that's an overview of what happened from my perspective. I know that Progressive and a couple of other motorcycle insurers sent rebates to their policyholders. I suspect that this was more of a marketing gesture than based on rate for risk principles since if there was a change in motorcycle usage in the US in 2020, it was probably an increase. Although, they may have factored in that few cars on the road mean fewer motorcycle crashes. This, perhaps, is why some have seen motorcycle insurance premium decreases. However, also be aware that some insurers originally had the CB1100 classified as a "sport" or "sporty" bike and I know that at least some of them now classify them as "touring", "cruiser", or sometimes "standard" this change would have reduced your liability rates as well as the physical damage rates.

So, that's my contribution to this conversation. Not at all sure it helps our English friend who posted this thread, though. LOL

[Mtneers]

Really?, for my car, I got a couple of hundred bucks off, for not driving to work...
Call your insurance and ask but if you keep driving to work daily, it may not apply.

When I retired and with my wife following about 2 years later, our auto insurance (Erie) dropped significantly when we were no longer commuting to work and estimated annual mileage was 8-10,000 miles per vehicle.

Emptysea may chime in on since this is his line of work.


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[emptysea]

Canadian insurance is similar to the US in a lot of ways. Europe's insurance system is vastly different. I suspect that our friends to the north got similar rebates and possible rate reductions from the pandemic. Most companies have always offered a discount for low annual miles and/or not driving to work. The pandemic rebates and related rate reductions would be in addition to those discounts, but you'd have to request them because the insurer has no real way to know that your individual situation has changed.

[Jfro5687_imp]

Thanks chaps. Be interesting to hear from any fellow UK members who read this and have had a refund or asked for one and got some. I don’t know anyone who has.

[Cormanus]

It’s not wonderfully helpful, but here in OZ, the insurer of our car provided rebates for a few months during the early part of the lockdown. As I recall they asked if our usage was down during the pandemic. I agreed it was and they sent the rebate.

peterbaron, have I understood you correctly that your premium for one motorcycle is C$1,800 p.a.?

I keep collision (I crash) and comprehensive (house falls on stuff), even though my cars and bikes are fully paid for. As Peter says, it's peace of mind.

Plus, the combined additional coverages are less than earthquake insurance on my condo. So, if The Big One ever does hit, and my house pancakes down onto my garage, I'll have the added peace of mind that my flattened vehicles are covered.

Gone, save your money. If the big one hits, your bikes will be covered, albeit not in the way you hoped.

[LongRanger_imp]

I have two cars and three motorcycles all covered by the same insurer. I received Covid refunds for each of the two cars, but nothing for the bikes. Could be because I only have the bikes insured for liability, not comp or collision.

[Gone in 60]

"Gone, save your money. If the big one hits, your bikes will be covered, albeit not in the way you hoped."

Yeah, and me too.

[peterbaron]

It’s not wonderfully helpful, but here in OZ, the insurer of our car provided rebates for a few months during the early part of the lockdown. As I recall they asked if our usage was down during the pandemic. I agreed it was and they sent the rebate.

peterbaron, have I understood you correctly that your premium for one motorcycle is C$1,800 p.a.?

I keep collision (I crash) and comprehensive (house falls on stuff), even though my cars and bikes are fully paid for. As Peter says, it's peace of mind.

Plus, the combined additional coverages are less than earthquake insurance on my condo. So, if The Big One ever does hit, and my house pancakes down onto my garage, I'll have the added peace of mind that my flattened vehicles are covered.

Gone, save your money. If the big one hits, your bikes will be covered, albeit not in the way you hoped.

NO, C$870 for my '14 CB

[Cormanus]

Thanks. Interesting differences between countries. Mine was AU$322 last year for full cover.

[peterbaron]

Fantastic premium, full coverage and almost one year riding.
Cormanus, do you own an insurance company??