Insurance, HDPE, etc.....
09-30-2020, 12:10 PM
#16
09-30-2020, 12:25 PM
#17
09-30-2020, 01:41 PM
#18
Open track went up as they lost their previous underwriting insurer, they found an alternative but no idea how long they will insure for if claims are being made. This business is High Risk and low reward it seems for providers.
09-30-2020, 02:11 PM
#19
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Hey ,
Hope you're great. Thanks for reaching out.
So unfortunately you are falling into the category in our new rate platform in that you're seeing a double hit on the rate. We took a relatively modest increase (approx 15%) on the entire book. This was the first time in 5+ years that we had taken any action with our rating and it was really just to keep up with the increasing cost of claims (parts costs, labor rates, etc have all been increasing).
Where you personally are seeing an even higher rate increase is that we had to take additional rate on 2 makes: McLaren & Ferrari. We have paid a lot of McLaren and Ferrari claims the past 5 years and we find that the cost of claims on those makes are substantially higher than any other make.
McLaren is by far the most expensive brand when it comes to parts costs. Bumpers, quarter panels, etc are outrageously expensive. Even small parts that you can weld at a machine shop for $50 cost $8K when purchasing through McLaren.
But we know that if you crash your McLaren, you want OEM parts. We will only fix cars with OEM parts b/c that is what you deserve.
So we had to take an extra surcharge to compensate for those increased costs.
I looked at your renewal from last year and your base premium was $9,900. I believe your renewal base premium this year is $12,800. So you are seeing a 30% increase over last year. I understand where that is a bit of a shock, but it's necessary given the quality of cars you own and drive on track.
I hope you understand and look at the overall value of our program. You are driving cars that if you were to have an incident on-track, you're probably looking at a claim of $100K at the absolute minimum. We just had a "small" Ferrari claim last week on a $400K 488... it was $124K in repair costs.
So I encourage you to break down the cost of the renewal by the # of track days you plan on doing in the next 12 months. Look at it more granular before you make the decision to walk away and self-insure. I hope you see there is still a lot of value in our program and the cost of risk at $13-14K is a lot more palatable than paying a $100K claim out of pocket.
As always, I am here for any time. Let me know what you think of my notes above and if I can answer any questions for you.
Thanks xxx. We appreciate your support and hope to retain you as a valuable member of our community for another year!
09-30-2020, 02:22 PM
#20
They sent me a very long email when I questioned the rate increase... Across the board increase but higher for Mclarens/Ferrari's. Below email was from April 8th, 2020 when I questioned the rate increase (I thought I'd share as it may be of interest to people ). The agreed value coverage is/was $300K. The other big difference was the deductible increase from 5% to 10% (in the past the deductible increased to 10% at the $325K coverage)
--------------------
Hey ,
Hope you're great. Thanks for reaching out.
So unfortunately you are falling into the category in our new rate platform in that you're seeing a double hit on the rate. We took a relatively modest increase (approx 15%) on the entire book. This was the first time in 5+ years that we had taken any action with our rating and it was really just to keep up with the increasing cost of claims (parts costs, labor rates, etc have all been increasing).
Where you personally are seeing an even higher rate increase is that we had to take additional rate on 2 makes: McLaren & Ferrari. We have paid a lot of McLaren and Ferrari claims the past 5 years and we find that the cost of claims on those makes are substantially higher than any other make.
McLaren is by far the most expensive brand when it comes to parts costs. Bumpers, quarter panels, etc are outrageously expensive. Even small parts that you can weld at a machine shop for $50 cost $8K when purchasing through McLaren.
But we know that if you crash your McLaren, you want OEM parts. We will only fix cars with OEM parts b/c that is what you deserve.
So we had to take an extra surcharge to compensate for those increased costs.
I looked at your renewal from last year and your base premium was $9,900. I believe your renewal base premium this year is $12,800. So you are seeing a 30% increase over last year. I understand where that is a bit of a shock, but it's necessary given the quality of cars you own and drive on track.
I hope you understand and look at the overall value of our program. You are driving cars that if you were to have an incident on-track, you're probably looking at a claim of $100K at the absolute minimum. We just had a "small" Ferrari claim last week on a $400K 488... it was $124K in repair costs.
So I encourage you to break down the cost of the renewal by the # of track days you plan on doing in the next 12 months. Look at it more granular before you make the decision to walk away and self-insure. I hope you see there is still a lot of value in our program and the cost of risk at $13-14K is a lot more palatable than paying a $100K claim out of pocket.
As always, I am here for any time. Let me know what you think of my notes above and if I can answer any questions for you.
Thanks xxx. We appreciate your support and hope to retain you as a valuable member of our community for another year!
--------------------
Hey ,
Hope you're great. Thanks for reaching out.
So unfortunately you are falling into the category in our new rate platform in that you're seeing a double hit on the rate. We took a relatively modest increase (approx 15%) on the entire book. This was the first time in 5+ years that we had taken any action with our rating and it was really just to keep up with the increasing cost of claims (parts costs, labor rates, etc have all been increasing).
Where you personally are seeing an even higher rate increase is that we had to take additional rate on 2 makes: McLaren & Ferrari. We have paid a lot of McLaren and Ferrari claims the past 5 years and we find that the cost of claims on those makes are substantially higher than any other make.
McLaren is by far the most expensive brand when it comes to parts costs. Bumpers, quarter panels, etc are outrageously expensive. Even small parts that you can weld at a machine shop for $50 cost $8K when purchasing through McLaren.
But we know that if you crash your McLaren, you want OEM parts. We will only fix cars with OEM parts b/c that is what you deserve.
So we had to take an extra surcharge to compensate for those increased costs.
I looked at your renewal from last year and your base premium was $9,900. I believe your renewal base premium this year is $12,800. So you are seeing a 30% increase over last year. I understand where that is a bit of a shock, but it's necessary given the quality of cars you own and drive on track.
I hope you understand and look at the overall value of our program. You are driving cars that if you were to have an incident on-track, you're probably looking at a claim of $100K at the absolute minimum. We just had a "small" Ferrari claim last week on a $400K 488... it was $124K in repair costs.
So I encourage you to break down the cost of the renewal by the # of track days you plan on doing in the next 12 months. Look at it more granular before you make the decision to walk away and self-insure. I hope you see there is still a lot of value in our program and the cost of risk at $13-14K is a lot more palatable than paying a $100K claim out of pocket.
As always, I am here for any time. Let me know what you think of my notes above and if I can answer any questions for you.
Thanks xxx. We appreciate your support and hope to retain you as a valuable member of our community for another year!
09-30-2020, 02:31 PM
#21
Honestly, with the increases, im thinking of going a different route vs driving my own cars at the track. The basic two day track is like 5-6k, ~$2k insurance, 800-1.2k track fees, rest is consumables like tires, brakes, oil, mileage and gas. Also considering a cheaper track car...
10-09-2022, 01:25 AM
#22
4th Gear
Join Date: Jun 2021
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can you please pm me details of your policy?
I have a standard car insurance policy with an in hand rider that covers DE, with an agreed upon value and a $1,500 deductible. In my case, it saved me over $3,000 from the standard track policies. This policy is with a AAA premium carrier. Anyone that is purchasing a separate track policy and does more than 4-5 events a year is wasting money. I have posted about this year and suggest that anyone interested do some research.