Insurance official in Quebec wants to ban 400cc+ Sport Bikes

[tlwisner]

I saw an interesting article on the AMA website:

http://www.amadirectlink.com/news/2006/Quebec.asp

I don't understand why they don't just set their rates so that the losses are covered. If x dollars of claims come in for supersport bikes, set the rates for supersport bikes to cover the claims. Aren't insurance rates already really high in Canada?

[blackie1491]

Tim
That is one of several private companies providing insurance in Quebec.
All insurance companies in Canada are increasing the profit margin and liabilitiy pools. Also when we compare policies, there is a vast diff. in coverage. It includes medical, 3rd party liabilites as high as 3 million.
A few Provinces, have Goverment Insurance for Auto Insurance as private companies were getting expensive, now those Govt. Agencies are becoming exspensive, senior staff are paying themself's good bonuses.

Once the Gov't. gets their hand in your pocket, it stays there.

[Louis]

I'd like to see the source of this information.

I've seen the suggested price hikes but to this is new to me...

[stp1971]

Just another money making scheme it sounds like to me.

[blackie1491]

ICBC was rattling us earlier in the year with proposed rate increases, as their risk pool was not high enough. But it is over $1 billion on which they are making interest. But all management was getting bonuses of 8 to 20%.

Our position is that the risk pool is not high enough, then they have not earned any bonus.

[bud van houten]

have a friend who is a farmers ins. agent and he can't even insure his ducati through farmers. i insure through state farm, and i know my agent has said if i didn't have my cars with them, they will not insure a motorcycle by itself. later, bud

[Louis]

The proposal is to have to increase the insurance contribution part of the fee.

Right now, (2006), it's costing me $320 to have the bike registered. $276 + other fees = $320. What they want to increase is the $276.

Currently what we have is this:

Scooter     | $  50
- 51cc      | $  81
51 to 125   | $ 131
126 to 400  | $ 206
401 +       | $ 276

There is no distinction on bike category.

The proposal is the following:

                         |  2007 |  2008 
Regular     | -125 cc    | $ 156 | $  177
            | 126 to 400 | $ 256 | $  294
            | 401 to 700 | $ 393 | $  470
            | 701 +      | $ 430 | $  527
"Sportbike" | 401 to 700 | $ 735 | $  993
            | 701 +      | $ 957 | $ 1332

I don't know where the SV fits as they are not defining what is "sportbike".

Best case:
2006 -> $ 276 + $ 44 = $320
2007 -> $ 393 + $ 44 = $437 (36% over 2006)
2008 -> $ 470 + $ 44 = $510 (59% over 2006)
Worst case:
2006 -> $ 276 + $ 44 = $320
2007 -> $ 735 + $ 44 = $779 (143% over 2006)
2008 -> $ 993 + $ 44 = $1037 (224% over 2006)

[Insaneman1731]

I don't blame them kind of. It is not fair to other bikers, then again it is not fair to alot of other bikers (ones with 400cc+). That sucks pretty much...

[Freakinout]

Man that sucks on the registration costs. It costs me like $43 bucks to register my 500R, and $60-something to register my F150.

[Louis]

Registration is pretty high as it covers an important of our insurance.

Right now, my registration fee is $320 CAD + about $250 CAD for full two-way insurance.

In Ontario, registration would be wbout $40 but insurance would be close to $2000 for two-way. (I'm just pulling figures out of my ***, those aren't the real figures for ONtario but they would be close)

[jpwM50]

Ya your darn close. Registration is $42 and 2 way insurance is like 1200 a year for an M50.

[tlwisner]

Originally Posted by Louis

I'd like to see the source of this information.

The article cites Canoe, a Quebec based News Agency. It doesn't have much for statistics - just some insurance guy who doesn't seem to be a big sportbike fan.

As long as new riders keep buying and wrecking supersports, things will only get worse.