Corey McNeely
Well-known member
Most multivehicle discount run between 15-20%, not 5%
High insurance rate, who is to blame?
- Thread starter elton_t
- Start date
I was given 10 for having two bikes. I have no clue why it's only 10% considering I can't ride both at the same time. Should be up to 75%.
When I was with Belair I had a 2001 Jetta 2.0 gas. I bought a 2001 Jetta TDI. Each one was about the same in insurance. We'll say $150/month for the sake of argument. I wanted to have both insured for myself so if someone wanted to test drive the 2.0 while I was trying to sell it, they could. So I got a quote for both combined. $320/month. How does that make sense? I knew it would be a little more than the cost of one but more than double the cost when I could only drive one at a time made no sense. Of course they also don't tell you that if you insure one as an "occasional use" vehicle the rate on that one can go down by almost half sometimes.
First off, insurance and the Gov't are not "in bed" with each other; in fact, it is quite the opposite. The Gov't won't let insurance companies make any move without their approval (and they DO disapprove a lot of requests by insurance companies, even if they are reasonable). Insurance is expensive in Ontario because claims are frequent and expensive in Ontario.
As an example, suppose that you pay into your own benefits plan and people at your company rarely claim for things such as orthotics, chiro, massage therapy, etc. However, last year some employees in a specific department starting raving about how much they enjoy these services, and people in other departments start to take advantage of the services as well. The claims to the plan increase, and now the contributions by the employees are insufficient to cover the cost of the claims. To make ends meet, the employer raises the contribution rates and/or implements cost-saving measures such as copayments, deductibles, reduced limits, etc. This example doesn't even consider the effects of inflation on the cost per visit.
We have a similar situation in Ontario auto insurance. I think things are getting slightly better since the Sep10 Auto Reforms though -- my employer has filed for three consecutive rate decreases, and will likely file for another decrease in 2013.
As an example, suppose that you pay into your own benefits plan and people at your company rarely claim for things such as orthotics, chiro, massage therapy, etc. However, last year some employees in a specific department starting raving about how much they enjoy these services, and people in other departments start to take advantage of the services as well. The claims to the plan increase, and now the contributions by the employees are insufficient to cover the cost of the claims. To make ends meet, the employer raises the contribution rates and/or implements cost-saving measures such as copayments, deductibles, reduced limits, etc. This example doesn't even consider the effects of inflation on the cost per visit.
We have a similar situation in Ontario auto insurance. I think things are getting slightly better since the Sep10 Auto Reforms though -- my employer has filed for three consecutive rate decreases, and will likely file for another decrease in 2013.
Either the $320 quote was a mistake, or the quote was based on a newer (higher) set of rates than the $300 quote. You might have been paying $150/yr, but the renewal cost of each might have been $160/yr?
