USAA Quit Insuring Motorcycles - K-Bikes.com - Excellence in Motion
 
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post #1 of 6 (permalink) Old Jan 17th, 2009, 2:34 pm Thread Starter
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USAA Quit Insuring Motorcycles

My story as posted on i-bmw forums;

I just bought a 2004 R1100S and as I have done for the past 34 years I called USAA to add the new motorcycle to my coverage, WRONG!! An unpublished policy adapted in December indicates that USAA has quit insuring any new motorcycles. You can keep the one's you have but USAA will not insure and additional motorcycles. USAA is sending every new motorcycle request to Progressive. I got the same story from two representatives and one supervisory representative, and my initial appeal to cover my new bike was denied by an underwriter. And yes, I have a outstanding driving record. It is not personal; it is for ALL USAA members.
It is time to call anyone you know at USAA that has any influence with the MG Joe Robles CEO of USAA, and protest this new unpublished policy. I have contacted Ray Zimmerman BMW MOA Executive Director whose going to contact USAA and I have contacted Benny Suggs head of HOG. If you can help to reverse this no new motorcycle policy please let me know off line at [email protected] . Also, let me know if this has happened to you?

Since posting the above thread I have found that USAA representatives have lied to their members: I was personally told by Ms. Holland, a supervisor with USAA, that the policy went into effect DEC 08, and I have since found several individuals who were denied coverage long before DEC 08. I have also been told by a i-bmw board member that he can still get USAA coverage in CA. I am also suspicious of the policy because it has not been published or at the very least sent to the USAA motorcycle owner members to inform them of no new motorcycle coverage. USAA prides itself on not being owned by stockholders but 'members'. To me it seems they have lost their commitment to the founding principles of service, loyalty, honesty and integrity.

Please write MG Joe Robles, CEO of USAA and let him know your feelings. It appears that USAA is using the divide and conquer approach and picking us motorcyclist off one at a time.
MG Joe Robles
9800 Fredericksburg Road
San Antonio, TX 78288

Thanks
Robert

2014 R1200RT Ebony Black--(deep Burgundy)
2012 R1200RT Tri-Color (traded for 2014 R1200RT see above)
2012 R1200RT Tri-Color (Traded for exact same bike, see above)
2004 R1100SA "Piedmont Red Metallic" (Traded)
2002 K1200RS BLACK (Traded for RT)
2000 FLTRSEI "Screamin Eagle, Triple Red" Gone but not forgotten.
1999 FXR3 "Green Flame" In the Garage
1998 K1200RS "Taxi" (sold)
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post #2 of 6 (permalink) Old Jan 17th, 2009, 10:44 pm
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An insurance company will usually only exit any particular class of business for one reason.

If this is a "mutual" member owned organisation you should have access to their annual report and this may provide the information that probably supports their decision.

It probably wont be complex, if they were making money in this class, they wouldnt exit.

Motorcycle insurance is a difficult class that has become even harder with the high number of fairinged bikes that can easily become total losses due to minor accidents.

They are also relatively easy to steal and in challenging economic times like you are currently in, theft fraud is a big issue by owners who cant make repayments.

Insurance is about critical mass and if you dont have it you will probably get burned.

Many insurance companies will write motorcycles as an accommodation benefit for existing policy holders but their premiums will usually be uncompetitive when compared to the specialist motorcycle insurers who do have the critical mass to be able to properly analyse claims trends and cost data as well as having the buying power to minimise repair costs.

Its a shame if they were good but in these times its about survival.

Black stuff down, Shiny side up!______________________________
10 R1200RTSE
02 R1100S
07 K1200GT R.I.P.
86 K100RS Sold
07 R1200GSA Sold
07 Softail Heritage Sold
86 K100RS Sold
82 R100RS Sold
82 Suzi GSX1100 Sold
75 Honda 750/4 Sold
74 Yamaha XS650 Sold

Last edited by Dadicool59; Jan 17th, 2009 at 11:10 pm.
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post #3 of 6 (permalink) Old Jan 18th, 2009, 12:03 am
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correct, insurance business is business not charity. here also is difficult to insure motorcycles and have to answer many questions about age, experience, other vehicles owned and insured at same company.


2010 R1200RT
2009 X6
2010 X1
former and future k owner
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post #4 of 6 (permalink) Old Jan 18th, 2009, 8:49 am Thread Starter
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Quote:
Originally Posted by Dadicool59
An insurance company will usually only exit any particular class of business for one reason.

If this is a "mutual" member owned organisation you should have access to their annual report and this may provide the information that probably supports their decision.

It probably wont be complex, if they were making money in this class, they wouldnt exit.

Motorcycle insurance is a difficult class that has become even harder with the high number of fairinged bikes that can easily become total losses due to minor accidents.

They are also relatively easy to steal and in challenging economic times like you are currently in, theft fraud is a big issue by owners who cant make repayments.

Insurance is about critical mass and if you dont have it you will probably get burned.

Many insurance companies will write motorcycles as an accommodation benefit for existing policy holders but their premiums will usually be uncompetitive when compared to the specialist motorcycle insurers who do have the critical mass to be able to properly analyse claims trends and cost data as well as having the buying power to minimise repair costs.

Its a shame if they were good but in these times its about survival.
I have asked for the documentation and board approval minutes. The only issue is that there has not been a 'statement' issued to the membership regarding this decision. So it may be something that someone decided to do without Board approval, maybe!

You're right if they were making a ton of money then they wouldn't quit. My problem is they are cheery picking the best coverage for them and not necessarily their members. If it is motorcycles today then it might be 'something' else tomorrow.

I have had great service with USAA for 34 years and if I paid a little more than the going rate then it is worth it to me. The keystone in my mind is how they treat claims. You may get cheaper insurance BUT do they pay off is the real issue. Having insurance that won't pay medical or replacement costs is really having no insurance at all.

USAA didn't use to be about critical mass because of the way it was founded. You stood on your own merit, the military way so to speak. It was founded by military officer for military officer only. In recent years the membership has expanded and I believe that is the crux of the problems. Insuring 18 year olds that only motorcycles insured with them, ie no houses, no money market, no autos, no nothing else, is just asking for high risk and claim losses.

USAA principles should punish those needing to be punished and not punish the entire group which they're doing. Again, it use to insure/consider individual members performance not groups.

I appreciate your point of view and incite

Thanks
Robert

2014 R1200RT Ebony Black--(deep Burgundy)
2012 R1200RT Tri-Color (traded for 2014 R1200RT see above)
2012 R1200RT Tri-Color (Traded for exact same bike, see above)
2004 R1100SA "Piedmont Red Metallic" (Traded)
2002 K1200RS BLACK (Traded for RT)
2000 FLTRSEI "Screamin Eagle, Triple Red" Gone but not forgotten.
1999 FXR3 "Green Flame" In the Garage
1998 K1200RS "Taxi" (sold)
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post #5 of 6 (permalink) Old Jan 18th, 2009, 8:07 pm
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Yeah, good luck Rob, it sounds like a pity to lose an institution like that for bike cover.
I had a look at their mid year update online and it was pretty scant, just a high level overview.
It didnt identify any specifics about different classes of business but overall they are making money and yes a more selective approach to underwriting and pricing sounds like a much better option for you guys if you can apply some industry or political pressure.
In my company we often get critisised for our pricing however we have one of the broadest and best covers for what we do.
We have a saying here that there is no such thing as a bad risk, just a bad premium ie its rate for risk.
The brand that i manage isnt good at motorcycles however so we dont promote it. The parent company does however have a motorcycle niche company with its own brand that is high profile here amongst the fraternity and probably has 60% of the motorcycle dealer market.
Good luck, hope you can get an outcome.

Andrew

Black stuff down, Shiny side up!______________________________
10 R1200RTSE
02 R1100S
07 K1200GT R.I.P.
86 K100RS Sold
07 R1200GSA Sold
07 Softail Heritage Sold
86 K100RS Sold
82 R100RS Sold
82 Suzi GSX1100 Sold
75 Honda 750/4 Sold
74 Yamaha XS650 Sold
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post #6 of 6 (permalink) Old Jan 18th, 2009, 8:16 pm Thread Starter
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Posts: 429
Quote:
Originally Posted by Dadicool59
Yeah, good luck Rob, it sounds like a pity to lose an institution like that for bike cover.
I had a look at their mid year update online and it was pretty scant, just a high level overview.
It didnt identify any specifics about different classes of business but overall they are making money and yes a more selective approach to underwriting and pricing sounds like a much better option for you guys if you can apply some industry or political pressure.
In my company we often get critisised for our pricing however we have one of the broadest and best covers for what we do.
We have a saying here that there is no such thing as a bad risk, just a bad premium ie its rate for risk.
The brand that i manage isnt good at motorcycles however so we dont promote it. The parent company does however have a motorcycle niche company with its own brand that is high profile here amongst the fraternity and probably has 60% of the motorcycle dealer market.
Good luck, hope you can get an outcome.

Andrew
Andrew,
I agree. With your no bad risk, just bad rate philosophy. However, I would be willing to pay more for the peace of mind that I have had with USAA for 42 years total. BUT I never had the option.
Come to America!!!

Thanks
Robert

2014 R1200RT Ebony Black--(deep Burgundy)
2012 R1200RT Tri-Color (traded for 2014 R1200RT see above)
2012 R1200RT Tri-Color (Traded for exact same bike, see above)
2004 R1100SA "Piedmont Red Metallic" (Traded)
2002 K1200RS BLACK (Traded for RT)
2000 FLTRSEI "Screamin Eagle, Triple Red" Gone but not forgotten.
1999 FXR3 "Green Flame" In the Garage
1998 K1200RS "Taxi" (sold)
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