MOTOR VEHICLE INSURANCE IN THE UNITED STATES: A 1998-1999 SNAPSHOT WITH EMPHASIS ON MOTORCYCLE COVERAGE

Motor vehicle insurance information is critical to understanding highway crash costs and who pays them. To address this need, unpublished data were obtained from six insurers that specialize in motorcycle insurance, along with parallel data from the nation's five largest motor vehicle insurers.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 traveled 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% 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 traveled, 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% had 750-1000 cc engines, 43% had larger engines, and 43% 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 National Highway Traffic Safety Administration (NHTSA) crash costing. These data are much different than those NHTSA collected in 1988. Increasing computerization and an improved data collection strategy make them more detailed, on point, and precise.

• Record URL:
  • http://www.nhtsa.gov/people/injury/pedbimot/motorcycle/motorcycleinsurance03/Motorcycle%20Insurance%20Web/Images/MotorVehicleInsurance.pdf
• 
• Corporate Authors:

  Pacific Institute for Research and Evaluation

  11720 Beltsville Drive, Suite 900
  Calverton, MD  United States  20705-3102

  National Highway Traffic Safety Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Miller, T R
  • Lawrence, B A
• Publication Date: 2003-3

Language

• English

Media Info

• Features: References; Tables;
• Pagination: 28 p.

Subject/Index Terms

• TRT Terms: Costs; Insurance; Insurance claims; Liability insurance; Loss and damage claims; Motorcycles; Private passenger vehicles; Theft; Vandalism
• Uncontrolled Terms: Motorcycle engine size; Property damage
• Geographic Terms: United States
• Subject Areas: Finance; Highways; Safety and Human Factors; Vehicles and Equipment; I96: Vehicle Operating Costs;

Filing Info

• Accession Number: 00943462
• Record Type: Publication
• Source Agency: National Highway Traffic Safety Administration
• Report/Paper Numbers: HS-809 494
• Contract Numbers: DTNH22-98-C-05167
• Files: HSL, TRIS, USDOT
• Created Date: Jun 23 2003 12:00AM