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Insurance

Let’s talk about insurance for a moment.

In Canada, insuring a motorcoach is a sucker’s game. The only question is just how outrageous some of the insurers will be in attempting to take as much money from you as possible.

Unfortunately we do not have the same competitive environment as exists in the United States and, because the market in Canada is much smaller, we wind up paying the price. Sometimes. It depends on an unusual set of circumstances.

I had posted about the tale of two coaches here. And the remarkable difference in the cost of a policy between the two insurance quotes from the same insurer for two motorcoaches of equivalent value.

Notice any difference?

Yes, we were paying $4,617.26 to insure a Newmar Dutch Star and our friends were paying $1,174.00 to insure their Newmar King Aire. Why? Well, we were given a number of nonsensical reasons: their coach was used and we had purchased new even though the market value of both coaches were equivalent and our coach had been in service for a couple of years.  And our friends had a special group rate (sadly, Lorraine and I do not constitute a special group so no, we would not be given the special group rate).

We renew our policy from this insurer next month. The coach is now a year older.

And guess how much they want to charge us to renew our policy?

SIX THOUSAND, FOUR HUNDRED DOLLARS!

No accidents. Perfect, clean driving record with no infractions. Just a massive bump in price because, well, just because. Thank you very much Aviva Canada.

Totally insane. We have a quote from another insurer for $3,300. While not a great deal, it is certainly better than the $4,617 we have been paying and clearly much better than the attempt to rob us of $6,400 on renewal.

Lorraine is checking with a few others and we’ll see if we can get any better pricing.

What a business.

A Tale Of Two Coaches

Friends of ours own a Newmar King Aire coach similar to the one pictured above. They bought it used. It is a 2013 model.

We own a Newmar Dutch Star coach. We bought it new. It is a 2016 model.

Their coach would be 5 years old. Ours is now 2 years old.

Notice anything different in the following insurance premiums?

We are both insured with Aviva Canada with basically the same coverage. The two coaches are valued at almost the same amount of money. And yet, our premium is almost $3,500 higher per year. We have a clean driving record, no tickets, no accidents. And we do not drink.

So why such a dramatic difference in the cost of the policies?

We talked to our insurance broker and we were given a number of reasons:

  • They bought the coach used and you bought it new
  • They must have a group discount
  • Their coach is 5 years old and your coach is new
  • You are the first owner, they are the second owner

Needless to say, we are now shopping for a different insurance company.

I could understand a few hundred dollars difference to insure the coach but over three thousand dollars?