VINMASTER Motorcycle rating factors hone pricing accuracyBy Sandee Perfetto | March 8, 2018
A new VINMASTER® product, VINMASTER Motorcycle, is now available for companies with current or pending implementations of the ISO Motorcycle Program. Based on customer feedback, the product design supplements the 10-digit vehicle identification number (VIN) with all the relevant rating information needed.
More than 8.6 million motorcycles are registered in the United States, according to the Federal Highway Administration (FHWA), and for the insurers that cover them, distinguishing a placid cruiser from a high-performance sportbike is as important as distinguishing a Camry from a Corvette.
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The 10-digit VIN identified through VINMASTER Motorcycle provides details such as engine size code, MSRP range coding, vehicle type code (indicates chopper, off-road, etc.), and all corresponding codes and rating factors.
Such capabilities are vital to maintaining a viable motorcycle program that properly measures risk. Supersport motorcycles, the most accident-prone type, have death rates as much as four to five times higher than the classes with the safest track records, according to data from the Insurance Institute for Highway Safety (IIHS). With motorcycle type rating factors, those risk differentials are accounted for across the spectrum of damage and injury coverages.
A company’s personal auto program can be used to write motorcycles as an accommodation, but the coverage and rating have limitations. A comprehensive, actuarially sound motorcycle program is essential to ensure profitable growth and avoid adverse selection. Without it, customers may take their motorcycles—and their cars—to another insurer that provides one-stop shopping for their vehicle coverage.
Reap the benefits of the ISO Motorcycle Program
Through the ISO Motorcycle Program, now filed in 46 states, insurers can:
- offer coverage for liability, medical payments, personal injury protection (where applicable), uninsured motorists, and physical damage through forms aligned with the Personal Auto Program
- exclude or limit coverage for passenger hazard, business use, driving under the influence, racing, or use by an unlicensed operator
- tailor coverage to motorcycles with specialized definitions and features, such as coverage sublimits for rider safety apparel and custom equipment
- apply territorial rating with seasonal adjustments
- classify risks by various risk characteristics while offering discounts for measures such as rider training and protective devices
- and now, with VINMASTER, get ISO motorcycle rating codes by VIN.
VINMASTER Motorcycle is ready to facilitate implementation and maintenance of the ISO Motorcycle Program in automated rating systems. Pricing is based on a company’s current ISO affiliation.