seestheday
New Member
I was asking a family member who is in the insurance industry about it and he explained it to me.
Here are the interesting things I found out:
[list type=decimal]
[*]The Ontario government mandates personal liability on all vehicle insurance policies. This means that the vehicle insurance company pays your medical bills if you get hurt, not OHIP. This is why if you get liability only coverage on a big, brand new super-duty truck, it is much cheaper than liability only on a motorcycle, or even a small car (e.g. a Hyundai accent). You're much less likely to be personally injured in the truck, so the likelihood that the insurance company will have to pay out is much smaller. This is also the reason why all medical forms have a checkbox to see if the injury you're getting treated for is as a result of a motor-vehicle accident. This is the biggest reason for the high premiums. It's not motorcycle insurance, it's health insurance. Once I found this out I became much less angry about the situation.
[*]There is no multi-motorcycle discount because if there was then this would be a way for people to get around high insurance rates. E.g. I own two motorcycles and are insuring them both, but I happen to "loan" my brother a bike. The bike is insured under my name, but in reality he's riding it 100% of the time under my insurance. This would be effectively committing fraud, but they find it easier to just shut it down by not giving a discount rather than trying to identify and prosecute the fraudsters.
[*]Insurance companies usually pay out $1.01 for every $1.00 they take in. You probably want to know how they stay in business? The do it with investments. They take all of that cash, invest it in some very safe stocks etc, and make their profits from that. What they can invest in and how much they can invest is heavily regulated so if the markets crash they will always have enough to pay out claims.
[*]Fraud is a huge problem and it is hurting us all. If there wasn't rampant insurance fraud then everyone's insurance would drop by like ~30%
[/list]
Here are the interesting things I found out:
[list type=decimal]
[*]The Ontario government mandates personal liability on all vehicle insurance policies. This means that the vehicle insurance company pays your medical bills if you get hurt, not OHIP. This is why if you get liability only coverage on a big, brand new super-duty truck, it is much cheaper than liability only on a motorcycle, or even a small car (e.g. a Hyundai accent). You're much less likely to be personally injured in the truck, so the likelihood that the insurance company will have to pay out is much smaller. This is also the reason why all medical forms have a checkbox to see if the injury you're getting treated for is as a result of a motor-vehicle accident. This is the biggest reason for the high premiums. It's not motorcycle insurance, it's health insurance. Once I found this out I became much less angry about the situation.
[*]There is no multi-motorcycle discount because if there was then this would be a way for people to get around high insurance rates. E.g. I own two motorcycles and are insuring them both, but I happen to "loan" my brother a bike. The bike is insured under my name, but in reality he's riding it 100% of the time under my insurance. This would be effectively committing fraud, but they find it easier to just shut it down by not giving a discount rather than trying to identify and prosecute the fraudsters.
[*]Insurance companies usually pay out $1.01 for every $1.00 they take in. You probably want to know how they stay in business? The do it with investments. They take all of that cash, invest it in some very safe stocks etc, and make their profits from that. What they can invest in and how much they can invest is heavily regulated so if the markets crash they will always have enough to pay out claims.
[*]Fraud is a huge problem and it is hurting us all. If there wasn't rampant insurance fraud then everyone's insurance would drop by like ~30%
[/list]