Welcome to Netrider ... Connecting Riders!

Interested in talking motorbikes with a terrific community of riders?
Signup (it's quick and free) to join the discussions and access the full suite of tools and information that Netrider has to offer.

Insurance - huge variations - what's the catch?

Discussion in 'General Motorcycling Discussion' started by akaluke, Sep 11, 2009.

  1. Hi All

    Newbie question...

    I've got a three quotes on insurance.
    Full comprehensive, comparable excesses.

    Approx - $950, $850 and $270 per year.

    The $270 per year is from the dealer I'm buying the bike from (via Swann insurance)...

    What's the catch?

    Am I missing something here?
  2. Different companies have different risk factors for each bike. What is risky to one through claims experience and general perception may not be to others.

    On the other hand it is generally considered industry knowledge that:
    1) Dealers often get away with quoting with massive margins under what the actual market price is and;
    2) What is quoted for the first year often changes dramatically upon renewal.

    In the end however it is your money and if the policy is covering you adequately then you should go with what your wallet decides.
  3. +1.

    I have two bikes and two insurance companies.

    On one bike there is about $150 difference in the quotes from the companies. On the other bike they are almost identical.

    Where the difference was large, I went with the cheapest, where the diference was small I went with the dearer because they offer a few little differences in cover that I figured were worth the extra.
  4. You cant combine them for an even cheaper rate? They know you cant ride two bikes at once you know.. :p
  5. 2) What is quoted for the first year often changes dramatically upon renewal.

    Can you substantiate this? I've been insuring vehicles for over 30 years and never had this happen.
  6. you must be lucky hornet.

    its happened to me. also age may play a part as we all know you get bent over when younger. premiums fall as you get older.

    sadly for you this is the case. :LOL:
  7. I didn't know insurance companies dropped the price as the risk fell, unless you ring them and tell them you're leaving. I just switched insurance companies (to a better one) because the first one wouldn't budge on price while the second was 100 bucks less and better coverage.
  8. of course they do; I insure the Hornet for just $215 per year because I'm in a lower-risk age bracket.
  9. A while ago, I decided to give up on the stuffing around and went to a broker. I do not get the cheapest quote, but i get the one thats got the most cover for the lowest price. Whilst my broker hates doing motorbikes(poor margins for her) she does it, as she does all the other insurance. She got the same policy I found for myself for $150 cheaper then I got QBE to come to the party with for new bike, and on my L's. IIRC now its less than half of what it was when I got the bike(2 years on).

    My mum has real insurance(or similar) for her car, she was recently hit by another driver, and her insurance company demanded a driving record before the repairs would be started, even though she was not at fault. You do get what you pay for, although you can get bargains aswell. Some companies will make you jump through hoops before anything gets settled though first.
  10. actually hornet, i can substantiate this. the very reason i changed to a different insurer.
  11. But are you saying they dropped the prices automatically or did you have to actually contact them and ask for it?
  12. When I first insured the bike in 2005 my premium was around $240, and each year I automatically renewed it for that, and in think I remember, in 2008 for a bit less. When I turned 60 it dropped to around $225 and this year (I just got the renewal) it was $215.
  13. Yes Hornet, I can.
    It goes with the practice of dealers issuing insurance as part of the finance/sale and also price matching other companies quotes.
    The "cheaper" quote that was given then reverts back to standard company book rates upon renewal. There may at times be a 10-15% cap on any increases however the full rate will become apparent over the next 1 or 2 renewals if over the cap.

    If the price given at the get go is the actual company rate and there are no adverse reasons that the rate will be changed throughout the year (ie. negative claims performance for that bike/car/postcode/region etc) then you will often not experience an increase at all.

    My comment, as stated, is more based on the receiving of an incredibly cheap quote in comparison to other insurers, especially as part of a sale through a dealer.
  14. Fair comment if the quote is linked to a sale; I was talking about straight-out insurance of bikes I already own. Obviously the sales people will do anything to make the sale because a year on they should care about you....
  15. Zealt said:
    Nope. First thing I asked.
  16. Insurance is like anything in life...

    You get what you pay for. So read the fine print!!!
  17. As others said, you get what you pay for,

    With RACV (the most expensive) I never had a worry. They were quick to assess my car after a smash and approve repairs quickly. They also did not change the policy price or impose an extra excess.

    QBE. Cheaper than RACV (for bike) by about 50% (30 year old male, no accidents at the time that were my fault, very few speeding fines). Imposed an extra excess after an accident that sticks for 3 years, were slow to assess bike for repair (took 3 weeks to inspect it, then 2 more to put through the paper work). Still, happy to be insured by them at the moment.
  18. Thanks everyone.
    I ended up going with Swann. I read the PDS and was happy with them.