Insurance extortion?

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southplainsdrifter

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I don't have a clue how insurance underwriting works but sometimes the prices make no sense at all. For instance....

Insurance on my Commando (through USAA who contracts with Progressive) is about $50/mo and the bikes value is assessed as the blue book value, or roughly $3,000. My Harley Dyna insurance is billed the same as the Commando (with the same coverage and same company) and it's value is insured for roughly $8,000. Numbers might be off a bit but either way, the Harley is given a significantly higher insurance value than the Commando.

So....does anyone here have any idea why this is so? Also, what company do you guys get your insurance through? I paid more than 3 G's for my commando and it would suck to total the bike and be out cash to replace it. This of course does not take into account any liability factors (fault) and just looks to what collision coverage will replace.

What do you guys (and gals) do?
 
In the UK various insurance companies offer 'agreed value' where the value of the vehicle is agreed by both parties beforehand.


Agreed value seems to be available in the US too: http://www.markelinsuresfun.com/Motorcy ... erage.aspx


"Agreed Value Coverage
This coverage "locks" in the value of your motorcycle at an agreed price with the exception of depreciation of tires, batteries and engine parts. In the event of a total loss, we will pay the agreed value if we can not replace the motorcycle with like kind and quality. An appraisal and photographs must be forwarded to us for review before this coverage will be added to a new or existing policy."
 
Wow, $50 a MONTH? That's a LOT more than I pay a month for my NEW Honda ST1300!

I pay around $300 a year for Commando insurance from GMAC, check them and I used to use Dairyland but can't remember anymore why not now.

Most insurance companies will give a pretty good additional discount if you insure all your stuff with them like house, cars, bikes, etc

What is really irritating is that all the insurers pull your credit report for your FICO score, and base your rate to some degree off that score.

For example, I pay MORE than normal for my house and auto insurance because, they told me, I have a low "FICO" score, and thus I am in a worse risk pool.

I do have a low score, because I have NO credit. I paid off the house mortgage twenty years ago, and pay cash for all the vehicles, no credit cards,
and I refuse to take out a loan or use a revolving credit card and pay interest just be have a little higher score. Such is life, still really gets me.

Maybe you have some dings or lates on your credit report, this could easily be driving up your rates.
 
Yeah, I pay almost twice what you pay....but I'm a 29 y/o hooligan I guess.

GMAC huh? I'll have to look into that. Insurance sucks--but I like the "agreed value" deal.
 
I insured my 72 Commando Roadster with Haggerty, Ins. for $329.00 with an agreed value of 10,000. I really don't know if the bike is worth that, but felt like I might be able to build one again for that much. Haggerty's specialty is collectible cars and motorcycles.
 
I use Grundy. Its based on an agreed value. $100 per year for the 1st than $30 a year for the others.
 
I hate insurance- all kinds, but not going to start that debate... They even have a yearly tax here based on your vehicle's value! As of now tax on my commando is over 300/yr. Any other states have this?
 
Southplainsdrifter , you need to contact USAA and inquire about collector vehicle coverage for your Commando . I have 3 vehicles and a homeowner's policy with them . They steered me to a company called American Modern through the USAA general agency . I pay 40 a month for both the Commando and BMW R90S , with an agreed upon value of approx 10K for each bike .

Ron
 
I originally insured my bikes with American Collectors but have since switched over to Hagertys. About half the price. These are the two companies I know about with "agreed value" policies for vintage motorcycles. Most of the regular insurance companies have no idea what a Commando is worth or will severely undervalue it so you need to deal with a place selling agreed value policies. There are some restrictions on these policies though like mileage limitations etc. that you need to be aware of.
 
DogT said:
Insurance = extortion.
Click to expand...

Actually insurance is a gamble or a bet if you will. You are betting whatever amount you pay each year that you will have an accident and the insurance company is betting you won't, it's the same with life insurance which is an even bigger rip-off. At any rate to get back on topic, I pay the minimum required by law for my bikes which is public liability, this is about $95 per year, if I wreck the bike, then I will just pay to get it back on the road. So far, I am ahead and on any old bikes, they would probably just declare them scrapped and give me the "agreed uppon" amount which would be less than what would be needed to get it back on the road.

It's funny, but it seems accidents always happen to the same people and luckily or maybe just because I am a safe rider, I have never had an accident.

Ride safe everyone

Jean
 
If your bike is just a Sunday driver, then insure with Hagerty or Grundy with an agreed valve. If you drive it alot, bundle it up with your homeowners and auto policies. You generally can get much higher limits of coverage this way. The money your out on a bike in an insurance claim is nothing compared to what you could be out on the liabilty side of things. Just my 2 cents.
 
Bobs850 said:
If your bike is just a Sunday driver, then insure with Hagerty or Grundy with an agreed valve. If you drive it alot, bundle it up with your homeowners and auto policies. You generally can get much higher limits of coverage this way. The money your out on a bike in an insurance claim is nothing compared to what you could be out on the liabilty side of things. Just my 2 cents.
Click to expand...

I absolutely agree that liability is what you need to be worried about. The policy I have through Hagertys has the same liability limits as my regular automotive policy and are well above those required by the state. I think I had the same coverages through American Collectors.
 
Thanks everyone for some excellent advice. I'm going to check out Haggerty's and Grundy. I tried at one point to go with a collector insurance outfit but I can't remember the name. That didn't work out since I was riding my Commando every day and they have mileage restrictions and some other BS that I didn't want to deal with.

I also learned that USAA doesn't do motorcycle insurance anymore--or at least they go through Progressive and don't do their own underwriting. I completely agree with the point about liability. Also, I have been in some bike wrecks, but not my fault I promise! Ok, maybe one was...

I just don't want to insure my Commando as a museum piece because it certainly is not.
 
southplainsdrifter said:
Thanks everyone for some excellent advice. I'm going to check out Haggerty's and Grundy. I tried at one point to go with a collector insurance outfit but I can't remember the name. That didn't work out since I was riding my Commando every day and they have mileage restrictions and some other BS that I didn't want to deal with.

I also learned that USAA doesn't do motorcycle insurance anymore--or at least they go through Progressive and don't do their own underwriting. I completely agree with the point about liability. Also, I have been in some bike wrecks, but not my fault I promise! Ok, maybe one was...

I just don't want to insure my Commando as a museum piece because it certainly is not.
Click to expand...

I just checked out Gundy because I hadn't heard of them. Looks like they have several categories of usage like "daily driver", "weekend driver" etc. that Hagertys and American Collectors don't have.
 
Interesting.....

I also was pointed to Progressive by USAA and purchased what amounts to a fixed replacement value contract of $8,000 for my `71. I then tacked on the usual collison/low deductilble/liability/medical that matches the car(s) for a total yearly bill of less than $180.

(Must be because I'm so mature, trustworthy and good looking) :-)

Army officer YoungSon intially went the same route--USSA/Progressive--for his `07 Harley StreetBob and they wanted $900 (!) GEICO wound up giving it to him for half that.

It pays to shop around
 
I use Condon & Skelly out of New Jersey. The policy is with Met Life. They specialize in classic, antique, collectable etc. I pay about $110 per year and have $10K value plus very good liability. Normally they give you book value but they accept agreed value if you have photos & documentation to support that. The policy is intended for "recreational use" and has a 2500 mile per year limit, which I exceed a bit. You can't use the vehicle as daily transport and they don't cover you if you ride it to work, that's the only down side for me.
 
...they don't cover you if you ride it to work....
Click to expand...

They don't cover you you regularly ride it to work ? ...or if you just happen to ride to work on one of those 2,500 mi/yr days ?
 
Judging from the responses from the recent thread on our ages, most of the US members of this forum could join me as a policy-holder in AARP motorcycle insurance. I know, I know, its hard to come to grips with us as actual or potential retired folks, but their insurance, through Foremost, was the best deal by far that I found when I insured my Victor a few years ago. My current policy, covering both the Victor and my Norton Mk3, and including big liability limits and towing, costs around $800'year. Insured value is set by "agreed value", in my case a total of $16,000 for the two bikes. Anyone over 55 qualifies. Old guys (and gals) rule.
 
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