USAA and Motorcycles

[NightVisionPen]

I bring it up here because the last thread that discussed it was closed.

The reason why there is some confusion about USAA covering motorcycles directly and why some folks are underwritten by a Progressive policy has to do with when your motorcycle policy first began and which state you live in.

I have had a motorcycle policy continuously since 1997. At that time they didn't actually have specific actuary tables for motorcycles so they were written as auto policies, but for motorcycles. Once you have a policy with them, they don't dump it later and force you to go with Progressive and once you have a policy you can add a second motorcycle and it stays with USAA. The new bike, if being added, does not go via Progressive.

Additionally, some states require that any auto insurer MUST also insure motorcycles. Therefore if you live in one of those states and are a USAA member they are required to underwrite the policy themselves if they want to do auto insurance. Once you PCS to a different state, they do not dump you to the Progressive side, you just stay on the USAA side for the bike.

I only know this because I was chatting with a pretty cool rep while waiting for some information that was being run down by another rep. The lady had been there a long time. But according to her, that is why there appears to be a discrepancy about how USAA handles motorcycle coverage.

 

[MasterBates]

Yeah.. I've had weird Motorcyle experiences with them.

I had my 1972 Suzuki GT380 and 1983 Honda CX650T with them, but when I sold them and had a gap in bikes during deployment, they would not insure my 03 Triumph Bonneville when I got back from cruise.

This was in FL if it matters. Progressive is dirt cheap. Like $120/yr for full coverage w/ $250 deductible on the Triumph. I'm staying with them for bikes, if only because its the easiest way to go at this point.

 

[Stick]

Here is a post by a USAA agent on a motorcycle forum I frequent concerning USAA and motorcycle insurance.

"CA, MI, NH, NC we can directly. And for other states that is correct, thru progressive. If you have a bike insured with us however, it is grandfathered. The rates for USAA bike insurance are profoundly cheap because we dont have a large enough market share to adequately rate the policies. State laws prevent us from refusing to insure motorcycles purely because of vehicle type in the above exception states. And we don't insure bikes elsewhere because of the rate inadequacy."

When I asked him more about it he said USAA will insure a bike in those states and if you move they will keep you covered at a very cheap rate. He said their rates will be the cheapest in any state other than those four listed above. He also said that if you get another bike while not in one of those states you will be sent to Progressive even if you already have one covered by USAA. I don't see myself being stationed in one of those states anytime soon but thought I would share the info.