I think insurance companies should establish premiums according to age groups like here in Europe.
18 to 21 yr. old are statisticly riskier so they pay higher premiums. If you dont have an accident after 1 year, you go to a merit class & get a discount the next year. If you do have an accident then they raise YOUR premium the next year.
There are several age group categories, basically the older you are, the less you pay.
Its a bit complicated to explain but its pretty fair in its structure
It works on a bonus-malus principle & 6 age groups.
Say, you buy a bike for the 1st. time
This means you start at group 14
How much you pay now depends on,
Bike cc.
your age
where you live (some places are riskier than others)
If after a year you dont have an accident, you go to bonus & group 13. This means a discount for the following year cos youve been a good boy.
Next year again no accidents, so you get group 12- even more discount!
And so on & so on till you get to group 1 which means up to 60% or more discount cos youve been a good boy
BUT, here's the crunch, if you have an accident, you go back, say you were group 8, to group 10, for the first accident. Crash again & you'll drop to 13. ie. NO DISCOUNT !!!
IF YOU CRASH SAY, the FIRST year , you go to MALUS which means group 15 & say 10% INCREASE in premium.
Another crash the following year means group 16 or with some companies 17 with increases of up to 50 to 60%. Carry on & if you dont kill yourself (or someone), youll be paying DOUBLE or 2& half times MORE !!
At this point, unless you are a close relative of Mr. Rockfeller, the cost of running your bike will be to the very least prohibitive, leaving you the choice of quitting motor bikes or drastically changing your riding stile.
In my modest opinion, this is a pretty fair way to deal with the situation rather than now where everybody is paying for the mistakes of others.
What do you people think of this system ?