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04-12-10, 01:34 PM

Yes.

Insurance is made up of several parts. Normally;
Underwriting
Broker cost/profit
IPT (Insurance premium tax - The same as VAT really)

Underwriting is based on the risk so down to your history, location, security, bike and the average cost per claim so this is based on historical information and is called "burn rate" in the trade.
Broker costs are down to the admin costs and profit the company want to make. They normally take any diacounts from here.
IPT is down to the government but can be 2 rates (I think) 5% and 17.5% depending on if the policy was brought or a giveaway (free insurance with a bike purchase)

A lot of rises are due to "no win no fee" costs which can be more than the cost of repairs and replacement of the bike.

Just as a thing to remember, if you claim you use a security chain or lock and the bike gets nicked when it is not fitted then you may get no payout. The difference between me using an Oxford Granite or not was a fiver reduction in premium.

04-12-10, 01:34 PM	#5
B1k3R Guest Posts: n/a	Re: does insurance get to a minimum limit? Yes. Insurance is made up of several parts. Normally; Underwriting Broker cost/profit IPT (Insurance premium tax - The same as VAT really) Underwriting is based on the risk so down to your history, location, security, bike and the average cost per claim so this is based on historical information and is called "burn rate" in the trade. Broker costs are down to the admin costs and profit the company want to make. They normally take any diacounts from here. IPT is down to the government but can be 2 rates (I think) 5% and 17.5% depending on if the policy was brought or a giveaway (free insurance with a bike purchase) A lot of rises are due to "no win no fee" costs which can be more than the cost of repairs and replacement of the bike. Just as a thing to remember, if you claim you use a security chain or lock and the bike gets nicked when it is not fitted then you may get no payout. The difference between me using an Oxford Granite or not was a fiver reduction in premium.