Motorcycle Question

    Posted by MAIA on Jun 13, 2019, 12:01:00 AM

    QUESTION

    This question was answered based upon current rules, regulations & statutes in effect on May 02, 2019

    Do you know of any verbiage for Mapfre/Commerce -where I can find that there is no Annual Mileage credit on motorcycles ?

    ANSWER

    Irene Morrill:  It was always my belief that this credit just never applied to other than private passenger autos.  The MAIP manual states:

    D. Annual Mileage Discount

    A discount of the premium paid for Parts 1, 2, 3, 4, 5, 6, 7, 8 and 12 will be given to eligible policyholders on request, when the annual mileage of the vehicle falls into one of two categories.  The discount will be based on the actual mileage driven in the previous policy year as determined by a comparison of two odometer readings, at least six months apart, from the Registry of Motor Vehicles information or the Annual Mileage Discount Form and other standard automobile insurance forms available to the company.  Refer to the Miscellaneous Rating Factors Page for the applicable categories and discounts.

    1. Eligibility

    The vehicle must be a private passenger vehicle as defined in Rule 27, except that vehicles classified as Antiques are not eligible.  The company may request that the applicant for the discount complete the Annual Mileage Discount Form for the verification of eligibility for the discount.

    A motorcycle is not a private passenger vehicle.  I’m sending this to Kathy Cormier, CPPL, Member Relations Advocate.  Kathy?

    Kathy Cormier:   Here is the rule form Commerce for Annual Mileage Discount and it states that the vehicle must be a private passenger vehicle as defined by Rule 27.  Motorcycles are classified under Rule 44 and would not be eligible.

     D. Annual Mileage Discount

    A discount of the premium paid for Parts 1, 2, 3, 4, 5, 6, 7, 8 and 12 will be given to eligible policyholders when the annual mileage of the vehicle falls into one of the applicable categories. The discount will be based on: (1) the Years Licensed Group of the operator assigned to that vehicle, (2) the Premium Town Group of the operator assigned to that vehicle and (3) the actual mileage driven in a recent 12 month period as determined by a comparison of two odometer readings, at least six months apart, and not more than 24 months prior to renewal processing or, obtained from Registry of Motor Vehicle information, or if not available, a certification by the insured on the Annual Mileage Discount Form or other paper or on-line forms required by the company. 

    Refer to the Rate Manual for the applicable categories and discounts.

    Eligibility

    The vehicle must be a private passenger vehicle as defined in Rule 27, except that vehicles classified as antiques are not eligible. Commerce may request that the applicant for the discount complete the Annual Mileage Discount Form or other paper or on-line form for the verification of eligibility for the discount. 

    If two odometer readings, at least six months apart are not available to Commerce through the Registry of Motor Vehicles as set forth above, or if the Annual Mileage Discount Form or other required certification by the insured is not completed by the insured and provided to the company prior to renewal processing, the vehicle is not eligible for the annual mileage discount.

    If a vehicle replaces another vehicle which is receiving the discount, the annual mileage of the prior vehicle will be attributed to the replacement vehicle.

    Application of Discount

    The applicable discount applies to rates otherwise determined for each insured vehicle by coverage, limits purchased, territory code , driver class, and model year and symbol prior to the application of the premium adjustment required under the Merit Rating Plan.

    I hope this helps.

    Agent:  Thank you so much.

    This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: Personal, 2019

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