Insurance Revved Up
Newcastle Herald
Saturday January 27, 2007
ADRIAN Vaughan, 65, has a spotless motoring record and has insured his Harley Davidson motorcycle with the same company for the past 10 years.
But that has not stopped the insurance company from slugging him with a green slip renewal premium almost double the cost of last year's.Mr Vaughan, of Jewells, is one of thousands of motorcyclists who have been hit by a number of insurance companies changing their price structure for motorcycles. The State Government Motor Accidents Authority (MAA) confirmed the significant increase in green slip prices for motorcycles with an engine capacity of more than 300cc, saying several major insurance companies had increased prices. An MAA spokeswoman said claims made against large motorcycles had increased by 5 per cent in 2006."While this increase and the introduction of the new children's no-fault benefit scheme last October would have partly contributed to the change in green slip prices, the increase would appear to be mainly due to a change in insurers' pricing structure for motorcycles," she said. Mr Vaughan said the cost of his green slip went up from $355 last year to $655 this year, including the maximum no-claim bonus.He said many of his motorcycling friends from the over-50s Ulysses Club were also affected by the increases."What annoys me is that this is a compulsory insurance you have to pay for it," Mr Vaughan said. "There may have been a 5 per cent increase in claims against motorcycles, but that doesn't warrant a 90 per cent premium increase."A spokesman for NRMA Insurance said pricing adjustments had been made for some motorcycle customers."However, these price changes are not across the board and we believe that the changes are in line with the market," he said.
© 2007 Newcastle Herald
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