Motor vehicle insurance information is critical to understanding highway crash costs and who pays them. To address this need, PIRE obtained unpublished data from six insurers that specialise in motorcycle insurance, along with parallel data from the nation’s five largest motor vehicle insurers. Both insured motorcycles and other private passenger vehicles experienced $35.50 in crash-related claims per thousand miles travelled in 1998-1999. Motorcycles, however, typically insure against fewer risks than autos. If they were as broadly insured as autos, their claims costs per mile would have been almost 1.6 times average auto claims costs. Average property damage losses per claim were 65 percent larger for motorcycles than for other private passenger vehicles. Compared to other private passenger vehicles, motorcycles also had worse loss experience on theft, vandalism, and other non-crash risks. Per thousand miles travelled, insurance coverage cost $87 for a motorcycle but just $61 for other private passenger vehicles. In aggregate, pricing for motorcycle coverage was commensurate with loss experience. Liability coverage, however, might have been overpriced and property damage coverage underpriced. Profits on motorcycle liability coverage offset losses on property damage coverage. Among insured motorcycles with coverage details known for 1999, 14 percent had 750-1000 cc engines, 43 percent had larger engines, and 43 percent had smaller ones. The number of claims per policy, claim severity, losses per policy, and premiums all rose with engine size. Among motorcycles with large engines, sportbikes had especially bad loss records, experiencing losses per policy 1.5 to 2 times those of other motorcycles with large engines. This project yielded data that will enhance future NHTSA crash costing. These data are much different than those NHTSA collected in 1988. Increasing computerisation and an improved data collection strategy make them more detailed, on point, and precise. (Author/publisher)
Abstract