"At Fault" Accident Premimum Surcharge

[geokoppmann]

How many of you are aware of an "At Fault Accident' insurance surcharge that applies, (at least in Virginia), ANYTIME YOU DROP A MOTORCYCLE, WHETHER MOVING OR NOT AND WHETHER THERE WAS ANY DAMAGE OR NOT.

I just read a VERY DISTURBING letter to the editor on pg. 4 of the Oct. 2005 issue of Motorcycle Consumer News written by an ST650 rider from Virginia who dropped his bike and 'scratched the beat up bumper' of a car while parking in a line of cars.

Like an honest person 'should', he left his name and contact information for the 'scratched' vehicle's owner who said she didn't notice the scratch his bike made to the bumper of her car and was not going to file a cliam.

He called his insurance company to inform them of the incident and gave them the 'scratched ' vehicle's license plate number. As it turned out this was a BIG, BIG, BIG, BIG $300.00 annual surcharge MISTAKE !

The 'scratched' vehicle's owner never contacted the ST650 rider's insurance company HOWEVER, his insurance company contacted the 'scratched' vehicle's owner, TWICE ! On their 2nd. call to her, she informed them that 'she wasn't going to pursue a claim'.

On July7th. the ST650 rider was informed by a 'rep' from his insurance company that, in line with its Virginia filing, the company 'must apply a surcharge premium, whenever you drop a motorcycle, whether you actually damaged anything or not'.

I'll be calling my Allstate Rep. the 1st. thing tomorrow morning to find out if such a 'clause' lurks in the fine print of my M/C insurance here in New Mexico and will report the results as soon as I can obtain a written confirmation or denial.

Just think about how many M/C Insurance Co. reps. may be lurking on this, and other M/C newsgroups, gathering 'intelligence' from our posts about dropped bikes.

[gunny]

"Must" My eye. Time to change insurance companies. At the least it sounds like they are not a company you want to have any business with in any case if they treat you like that.

A number of years ago the State of North Carolina and I had a little disagreement as to my observing the posted speed signs. The insurance company sent me a letter informing me that they "must" increase my rates. I told them that if they did, I would switch insurance carriers, they were not impressed until I told them that not only would my auto insurance but also my home owners insurance and our business insurance would also go elsewhere. They did NOT increase my rates.

A while back my wife had an "at fault" accident. Got a registered letter from the insurance company (different one) with a document they wanted one of us to sign, a "consent to rate", didn't sound good so shredded it. They sent a couple more and finally called. We never signed it and they never raised our rates.
Just sets wrong with me if I pay them a lot of money for many years, have a ticket or a claim and they think they can now get in your pocket. What have they been doing with all of these funds they have been collecting from me all these years? Had I been self insured, it would have cost me $2,500 out of my pocket.
Visit an insurance company's offices, not an agent, but the company, note the Italian marble floors, mahoganey furniture, the paintings on the wall, the cars in the parking lots. Might they have spent or invested at least some of these funds a little better?
Point is, don't stand for it, contact the state insurance commissioner.

[grifscoots]

Since raising all these kid's have really hit me in the insurance costs with all their wrecks whilst growing up, if it's not going to cost over 5 grand, I just pay it out of pocket to keep it from going up any higher. Insuring everybody's vehicle in our fambly, plus house and properties cost that much a year alone. Sure don't want to take, yet another, raise in premiums.

Amazing how the insurance companies think, "Our profits are down, so we'll be raising rates this year." Sheesh.

[Daman858]

Yep, Grif, and wait'll you see your preminums after this Katrina and Rita fiasco!