"Automatic" BMW insurance premium increases

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pieter's picture
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Joined: 2007/12/12

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I've been very impressed with the support from the BMW roadside assistance program, and I fully expect to experience the same level of service from the Insurance arm, should I ever need it(heaven forbid). You get what you pay for. Nevertheless, I get very agitated at automatic premium increases based on the "biker group profile" or claimed "inflationary pressures". I sent them a request to reconsider my premium hike based on the following remarks. 1. My individual risk has decreased since first signing up as an unknown rider. I have since proven my risk profile with no claims whatsoever. 2. They make no allowance for the devaluation of my vehicle in the mean time nor invite me to do so, and increase my premiums knowing fully well that they will only honor the depreciated value in case of theft. 3. They claim inflationary pressures as the basis of this increase. The inflation rate (CPI) inflation has slowed even further from the published 8,1% year-on-year (y/y) in January 2009. How do they justify an 22.7% (280% of CPI) increase in my premium? Dont get me wrong - the BMW insurance is good value. Mainstream insurers wont touch bikers. But come on, do the maths - we havent all fallen on our heads (yet!). Am I unreasonable?
Charl Smit's picture
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Joined: 2007/09/07
Charles Oertel's picture
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Joined: 2007/04/14
It is quite normal for insurers to ignore the depreciated value of the vehicle as the years go by (except when it comes to paying out). You have to contact them every year to reduce the insured value of the asset - it's standard practice in the industry and not BMW Insurance's fault. On the basis of your claim-free years you should be able to negotiate a better rate. Insurance premiums may also be going up as a result of overall increases in claims due to unsafe or irresponsible members in the pool. Also, the high cost of repair means more bikes are written off and the costs of replacement in the pool have gone up dramatically. Website Administrator [http://honeybadger.net Honey Badger IT Services]

Committee: Webmaster / Ride Captain

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Joined: 2008/07/15
Charles I know you are factually correct, yet it still erks me when companies act in this way. Must say I have an EXCELLENT short term broker - she contacts me every year to confirm my vehicle values, it is not only about bookie but also about what you added during the last year. When she then contacts the insurance on my behalf she also follows up on my no claim bonus. Been with her since August 2001, she still follows up every year. My BM is insured through BMW though - here I have to do the follow ups myself .... MUST agree with Pieter, IF they can automate the premium increase they can automate the bookie value and no claim bonus. JUST because the rest of the industry does not do it is hardly any reason to be "no better" ..... Come on, we all expect better from BMW.
pieter's picture
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Joined: 2007/12/12
Thanks for the forum link, Charlatan. Got so irritated by my letter (only just received it.. .well, bothered to OPEN it), I didnt check far enough back. Sorry for the double topic posting. But it also deserves a little more attention. I'll see what happens after my letter, and give them a ring too. Charles is correct, the insurance racket dont bother checking the facts. Our poor domestic is still being charged R2900 home owners'insurance by FNB underwriters, a full year after we secretly paid off her home loan for her - FNB wants R1500 to acknowledge that there is no debt outstanding on the loan. Think they'll pay it back? I was hoping BMW would be a little more appreciative of their customers.
Cloudgazer Steven's picture
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Joined: 2007/10/03
I have not received a letter, nor have my premiums gone up. Sometimes, its really great to be me. :)
There are so many problems in this world. Luckily there's a wristband available for almost all of them.
Charl Smit's picture
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Joined: 2007/09/07
Me neither.
Biza's picture
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Joined: 2009/05/25
I also received my letter. Agree, premiums are going up and they do not automatically depreciate the value accordingly. Luckily I have sold my bike and cancelled my insurance. I just bought a GSA and the quote received from BMW was R675-00 pm, my broker through Santam quoted me R440-00 pm. Leaves me with no option. Regards
Abel's picture
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Joined: 2007/10/15
I haven't received any letters as yet? The ride is the destination.
The ride is the destination.
Charles Oertel's picture
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Joined: 2007/04/14
Ok, so that you don't feel left out, here are a few: ''a r z v b m o'' feel better ;-) :) Website Administrator [http://honeybadger.net Honey Badger IT Services]

Committee: Webmaster / Ride Captain

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Joined: 2008/07/15
Charles you funny man. :) Got my letter on Monday, bearing in mind I took out new insurance in March/April my premium was not changed.
pieter's picture
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Joined: 2007/12/12
Update I had a very comforting response to my objection from BMW insurance. They agreed with my objections and apologised. More importantly, they adjusted my premiums to a much more reasonable ~8% increase. My faith is partially restored, but no doubt I'll have to do the same next year. At least they listended!

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