When Eric finished college and started his insurance agency it was natural that some of his first customers were family members – eager to give the young man a head start with his career. Among those first customers was his Grandmother – Grandma T. As a newly married couple in the 1920’s Grandma and Captain Traphagen purchased a modest 2 bedroom home in the Hyde Park neighborhood. The neighborhood would become one of the most expensive areas within the City of Cincinnati. Captain T passed away in the 60’s. Fast forward to the early 90’s and Eric discovered a serious issue with Grandma’s home insurance. That policy purchased in the 20’s had never been updated or increased.
Many modern home insurance policies are packaged with an automatic coverage increase meant to keep up with inflation and increasing home construction costs. That feature was not in place when the Traphagen’s original policy was issued. The agent (and the agent’s successors 70 years down the line) had never bothered to review the policy. And Grandma, trusting her agent, never looked at the coverage either. The home was still insured for the original purchase price with virtually no benefits for personal property like furniture or clothing.
Luckily, Grandma never had a claim on that home. But it is an extreme example of what can happen when you put your insurance on “autopilot”. Things change – in your life, in the cost to repair or replace property, and in what’s available on the market to insure your home and vehicles. Putting your insurance into the hands of an agent or a company and never reviewing it again can put you at great risk if you do have a claim.
For motorcycle insurance, there can be a number of times when you should review your insurance options. For example, if your marital status changes, you move, add or remove an operator, when your medical insurance changes, you add or remove a bike, or when you add more accessories to your ride. We’ll review each of these items.
Marital status – one of the first questions we ask a new motorcycle insurance prospect is their marital status. Married or widowed riders in general pay less than single riders. So a single rider that then gets married needs to let us know to take advantage of that lower rate.
Your address – it still surprises me that customers forget to inform us of an address change. At the minimum, not having the current address means that your insurance documents including bills, renewals and ID cards many not get to you in a timely manner. But part of the insurance cost is also figured by the garaging location of your vehicle. For our Kentucky customers, the taxes charged by your local municipality also come into play. Last week I worked with a customer that let us know he had moved – years before. Since his mail went to a PO Box that did not change, he hadn’t called to let us know. Turns out his new residence was a lot less expensive – due mainly to a lower tax rate. If he’d let us know about the move earlier, he could have saved 100’s of dollars.
Obviously, adding or removing an operator impacts the rate, depending on the driving record of the rider. If a new rider is added to your home, be sure to call your agent to have them added to your policy. Failing to do so could result in a claim involving that operator being declined by your insurer. You’ll also want to let us know when an operator leaves your household.
If you change jobs, become eligible for Medicare, or make other changes in your health insurance, you may want to review what’s available for medical costs under your motorcycle and auto insurance. You made decisions on what coverages to purchase on your bike and auto based on what health insurance you already had in place. So reviewing your policy to see what medical options you have is a must.
Again, I’m surprised at the customers that forget to call us when they’ve sold or bought a new bike. Of course you need coverage for your new ride – but I can’t give that coverage unless I know about it. Likewise, I can’t cancel coverage, and get you a refund when I haven’t been informed that a bike is no longer owned. Most companies require that you notify them within 14 days of a new addition, and within 30 days of any bike removal.
Over the winter many riders tweak their rides – adding some accessories, repainting, etc. Most motorcycle insurers include a small amount of accessory coverage with more available at an optional cost. But when you exceed that amount and don’t advise the company, you’ll lose the value of those accessories in an accident.
I’ve often mentioned that no one motorcycle insurance company is the “best” for all riders. Some are more favorable to particular bike manufacturers, within a specific city, or for riders with a few dings on their driving records. And some companies don’t offer all the coverages riders may need. For example, a few companies do not offer Medical Payments benefits, or have a maximum accessory benefit. Each company’s “sweet spot” caters to a different group of riders. So when things change you’ll not only want to let your agent know to update your existing policy, but ask if another company may be better for you under your new circumstances.
Our office attempts to send an insurance review every 24 months or so – just a trigger to get our customers to remove their insurance from autopilot! We know that insurance is not the first thing on your mind when you change jobs or add new paint to your bike.
And then there is also the fact that even when YOU have not changed, Life and your Company may have. Repair costs increase, company pricing changes. It’s a good idea every two to three years to pull up your policy, review your coverages, and check to see if there’s something better out there for you. Managing your coverage and cost will keep your insurance as affordable as possible and ensure that you’re not surprised with a lack of coverage after an accident. Just like each year you’re encouraged to change your smoke detector batteries when the time changes, you should use your policy renewal as the time to review your policy.
Karen Diehl operates Diehl Insurance with husband Eric. They agency specializes in motorcycle insurance for motorcycles and collector cars in Ohio, Kentucky and Indiana.
