Insurance Company Loss Data for Motorcycle Accidents and Thefts
When you think about your insurance rates, you probably think that the cost of insuring your motorcycles, as well as your other vehicles is astronomical. However, when you look at what you are paying compared to the insurance company loss data for motorcycle accidents and thefts you may be more content with the price you are paying for coverage. The insurance company loss data for motorcycle accidents and thefts will certainly give most motorcycle owners a new perspective on things!
Each year, insurance companies pay out billions of dollars for insurance claims that are automobile related. Of those billions, millions go to people who have claims that result in accidents involving motorcycles. Millions more go to pay claims to fix or replace bikes for non-accident related incidents, such as theft. Is it any wonder that we are paying such high premiums?
In fact, about $76 of every $100 that is paid in premiums for auto insurance is paid out on claims. This includes premiums that are paid for motorcycle insurance. That means that the insurance companies are taking a substantial loss, and they aren’t profiting as much as we would all like to believe that they are.
Theft of automobiles, including motorcycles, accounts for about 25% of the money that is paid out annually for claims. Higher medical costs contribute to the rising cost of insurance as well. Lawsuits against the insurance companies certainly don’t do anything to help curtail the rising rates either!
Motorcycles are more dangerous than cars because they are less stable, and less visible on the roadways. The Insurance Institute for Highway Safety reports that in 2003, 3590 people died in motorcycle related incidents, and that number has been steadily climbing since 1998. This number is up over 75% from what it was back in 1975. Of those crashes, 1535 were single vehicle crashes.
This is why insurance companies charge so much for insurance. It is also why some insurance companies do not insure motorcycles. With this information in hand, it is a bit easier to understand why insurance rates are so high, and the insurance company loss data for motorcycle accidents and thefts may even make it a little easier to send in your premium payments each month.
