Did ACA cause yet another cost to skyrocket?

Discussion in 'Too Hot for Swamp Gas' started by malligator, Aug 15, 2013.

  1. malligator
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    malligator Well-Known Member

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    My motorcycle insurance premiums went up 50% this year due to the increased cost of the medical portion of the policy. Progressive says it's the base cost of the coverage, not anything specific to me. I left the thread title open as a question to keep an open mind about what could cause such an enourmous increase in costs, but I just have to wonder if it wasn't the ACA. Care may become affordable for others, but it's certainly not for me.
  2. wgbgator
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    wgbgator Sub-optimal Poster Premium Member

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    I'm not sure if you can point to ACA, directly anyways. Out of curiosity, what are the coverages impacted? Most motorcycle policies are pretty limited in the medical coverages as it is. In FL, PIP and the liabilty insurance mandate do not apply at all. AZ is probably a totally different market, so I have no idea what local conditions are.
  3. dadx4
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    dadx4 Well-Known Member

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    Surely you wouldn't think the increase would be due to BOcare? RACIST!!!!
  4. gatordowneast
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    gatordowneast Well-Known Member

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    I'd blame it on him anyway. Only about 5% of the screw ups he's responsible for stick. His "publicists"...aka the MSM will spin it.
  5. wgbgator
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    wgbgator Sub-optimal Poster Premium Member

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    Yes, I'm sure the MSM will be hard at work spinning a state-level rate filing on motorcycle insurance made by one private insurer and approved by state regulators.
  6. ThePlayer
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    ThePlayer VIP Member

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  7. Row6
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    Row6 New Member

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    Probably not
  8. malligator
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    malligator Well-Known Member

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    Is there any other explanation then?
  9. Row6
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    Row6 New Member

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    [​IMG]
  10. dadx4
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    dadx4 Well-Known Member

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    Give me global warming for $600 Alex....I am just playing with ya Row.
  11. Row6
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    Row6 New Member

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    All in good fun dad!
  12. wgbgator
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    wgbgator Sub-optimal Poster Premium Member

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    Generally speaking, when insurors raise their premiums, they are reacting to losses sustained/incured on an actuarial basis, this naturally involves some statistical projection, but unless there is actuarial data on how the ACA is affecting current or past motorcycle claim frequency or severity, it would be hard to point to that as a tangible reason. With the limited information provided, Occam's razor would tell me that the reason the medical portion of your premium went up is that motorcycle medical claims impacted Progressive's loss ratio, and they adjusted their prices accordingly to maintain an acceptable ratio. Unless you can theorize why the ACA caused more loss experience on motorcycle medical coverage, it would be hard to say yes to your original question.
  13. malligator
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    malligator Well-Known Member

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    Not sure what you're getting at. Are you using the graph to illustrate premiums have been going up steadily so an instantaneous 50% increase is normal? Or are you using it to show that premiums are going up steadily and much less than 50% so my increase in premiums can't be from ACA?
  14. malligator
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    malligator Well-Known Member

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    I understand what you're saying and I realize that happens...and has happened. My insurance usually goes down a little. Maybe because it's based on the value of my vehicle which depreciates? Anyway, I called the one time is actually went up and they said that claims and costs adjusted the rates for my zip code so my insurance went up. The problem is that that was a 5% increase. This is 50%. That tells me they are being preemptive with rate increases. Just like my health insurance at work went up 53% this year. I can't believe rates shooting up at the same time the meat of ACA is rolling out is just a coincidence.
  15. Row6
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    Row6 New Member

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    I was being a smart ass and not giving your post the respect it deserves. Sorry about that. I don't know the answer.
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  16. wgbgator
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    wgbgator Sub-optimal Poster Premium Member

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    From a competition perspective, it would make no sense to be prememptive WRT to a rate increase. Especially with no hard data to make a reasonable projection. Progressive has to compete with Geico, Allstate, etc. They know people will shop when rates go up, so they arent going to do it based purely on speculative anticipation. Rate filings are public info, so if you really wanted to research it, you could see if competitors had similar rate filings on the same coverage. To me that would be more indicative of something more "macro" in the market/regulatory environment, instead of one particular insuror making a large increase to account for a poor loss experience over the last year or so.
  17. JerseyGator01
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    JerseyGator01 Well-Known Member

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    Motorcyclists are like lawyers: the 99% who are bad give the 1% who are good a bad name.
  18. VAg8r1
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    VAg8r1 Well-Known Member

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    Doesn't include 2012, but if the difference between 2011 and 2012 was similar to the 2010-2011 increase it may explain why the premiums have increased. Also note the long-term trend.

    Motorcycle Injuries in Florida
    [​IMG]
  19. Gatormb
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    Gatormb Well-Known Member

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    Motercycle? Life insurance for $250,000 Alex.
  20. 92gator
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    92gator Well-Known Member

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    LOL! :grin:

    I think you might be on to something here...they probably looked at Malli's record, ran it through actuarial analysis, and figured he's over-due for a mauling--so they jacked up his premiums...

    Note to Malligator: maybe it's time to trade in the crotch rocket (or is it a hog?) and invest in a second axel. ;)

    (especially in light of the implementation of obamacare).

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