Car Insurance

The one with the most toys - boats, motorcycles and personal watercraft - is probably having a lot of fun with them. But that person is also probably coughing up quite a bit in insurance premiums each year to protect them.

The fast, high-performance Kawasaki Ninja that Don Rousell’s son drives probably wouldn’t cause much damage to a larger vehicle if it collided with it, but the chance of bodily injury to Rousell’s son is greater than that of someone driving a car or a larger, slower motorcycle. Rousell, New Orleans area manager for ABC Insurance Agencies, says his son’s policy is much more expensive than one for an older driver of a slower, heavier motorcycle.

A number of factors determine the motorcycle premiums, including the driver’s gender, age, experience, whether the driver holds safety certificates, where the driver lives and whether the bike will be kept in a garage, says Rousell.

Louisiana law requires that an owner buy at least liability insurance on motorcycles. State law does not require insurance on all- terrain vehicles like four-wheelers, personal water craft like Jet Skis, small fishing boats and off-road motorbikes. But insurance agents say insurance on such items is very reasonable, so people with the means to own such items often purchase insurance.

When mandatory auto insurance went into effect a few years ago, many motorcycle riders bought the minimum liability insurance required, but those who own flashy or valuable toys like the Ninja choose to go with a more comprehensive coverage, says agents.

Despite the physical dangers associated with motorcycle riding, exacerbated recently by Louisiana’s helmet optional law, Rousell says motorcycle insurance is usually more reasonable than car or truck insurance. That’s because the cost to repair or replace a motorcycle - even a high-performance Japanese bike or top-of-the-line Harley- Davidson - is less than what it would take to repair or replace, say, a late-model Lexus sedan.

Still, Kevin J. Daley, an agent with Beneficial Insurance Mid City Inc., says he’s seen yearly premiums in the $3,000 range for a young driver with a comprehensive policy on a high-performance bike.

Through companies like Progressive Insurance Co., Daley also writes policies for small boats. He says most boat owners purchase policies with low limits of liability to cover replacement of the boat and the cost of any physical injuries. Once someone plunks down anywhere from $2,000 to $15,000 for a boat, chances are he’s going to want it protected, says Daley. One customer, he says, has a bass boat with an engine that’s worth in excess of $7,000. It may not be like an Al Copeland boat, like $30,000 to $40,000, but for a young kid that’s a lot of money. They want to make sure it’s protected.

He stresses there’s a wide range of variables that determine yearly premiums, but for an 18-foot, fiberglass fishing boat valued at $10,000 with collision, liability, and an uninsured boaters coverage, the yearly premium would be $1,066. And that’s on a relatively expensive boat, he says. Of course companies are leery if (the boat) has been modified and is extremely high performance. They’ll want to limit their exposure on boats like that.

But though the person will pay more, they will probably be able to get a policy. One factor that weighs into the decision is automobile driving records, which insurers feel is an indication of risk.

We think there’s a correlation between a bad driving record and a potentially bad risk on the water, says Howard Reiff, a spokesman for New York-based Ski-Safe, a niche company that specializes in recreational marine insurance. Ski-Safe, which writes policies in Louisiana, insures personal water craft, ski boats, yachts and antique boats.

Reiff says the riskiest proposition when it comes to water vehicles are personal water craft, and that’s why the company is particularly selective when issuing these policies. The problem is that many people let inexperienced drivers - often children - operate the vehicles. When kids are using these personal watercrafts jumping wakes and waves, unfortunately there are a lot of injuries, Reiff says.

Besides the injury risk, personal water craft also are easily stolen, Reiff says. Besides being particular about who it writes policies for, Ski-Safe advises policyholders about proper storage of the watercraft, like keeping it garaged as opposed to in front of their homes.

When writing a policy, the company also takes into account the number of months people will be using the watercraft; for example, premiums will be less for those who uses the vehicles only part of the year. Ski-Safe also looks at where the vehicles will be used, with open seas warranting higher premiums than calmer, inland lakes.

Most people, says Reiff, buy insurance that provides $10,000 to $25,000 in liability coverage on their personal watercraft. Such yearly premiums would range from $174 to $250 per watercraft, he says. Ski-safe does not offer multi-unit discounts.

In response to demand from its primarily upscale clientele, Novato, Calif.-based Fireman’s Fund Insurance Co. added its Aquamarine division last spring. The company expects the products to be available in Louisiana this summer. The products offer coverage for all boats and personal water craft, with the exception of yachts with paid crews and racing boats.

The boat enthusiast of the Aristotle Onassis variety might want to turn to Warren, N.J.-based Chubb Group of Insurance Cos. to insure a yacht. One of the company’s specialties is writing policies for so- called megayachts, says Chubb spokeswoman Mary Ann Avnet. These boats are generally defined as those valued in excess of $1 million and include a paid captain and crew.

Attracted by the freedom of the open road and camaraderie of fellow riders, many women are now confidently choosing the front seat of their very own motorcycle. In fact, the number of women participating in the sport of motorcycling is on the rise, representing one in 12 U.S. motorcycle owners, according to the Motorcycle Industry Council.

“Learning to master and control the motorcycle made me feel that I could do anything,” said Gail Concannon of New York City. “While I enjoyed riding on the back seat of my husband’s motorcycle for years, the sense of freedom and control I’ve had riding my own Harley-Davidson Softail alongside my husband is almost indescribable.”

Concannon is not alone. More and more women are seeking the sense of freedom, independence and adventure that motorcycling invokes and are finding that donning a leather jacket and saddling up not only changes the way they look, it changes the way they feel about themselves.

“Putting on my leather jacket and settling into the front seat doesn’t give me just a style makeover, it gives me confidence and a sense of control like nothing else I have ever known,” said Wendy Cedeno of Chicago.

As more women take control of the open road, they are beginning to have more influence on the motorcycle industry. According to the Motorcycle Industry Council, females purchased 45,000 new motorcycles in 2002, compared to only 10,000 just 14 years ago.

“This recent trend confirms what we knew all along,” said Kathleen Lawler, vice president of communications at Harley-Davidson Motor Company (NYSE: HDI). “Women enjoy the freedom and solitude of the open road just as much as their male counterparts. But, women also see motorcycles as a perfect opportunity to counterbalance constraining traditional gender roles.”

While women in the saddle of a Harley-Davidson is not a new phenomenon, the company is experiencing an exponential growth of female owners today. Purchases of new Harley-Davidson motorcycles by women grew from only 600 in 1985, to nearly 30,000 last year, accounting for nearly 10 percent of new motorcycle sales for the Motor Company.

“Getting my Low Rider was truly a life-changing experience for me,” said Eileen Lopez of New York City. “As I pull out of the driveway on my Harley, I leave my worries and stresses behind. Plus, the strong relationships I’ve developed with my fellow riders have really enriched my life.”

Linda Weeden, a new rider from Albuquerque, agrees. “Even though I’ve only put 1,000 miles on my new bike, I’ve already met the most incredible female riders from all walks of life. Although we come from different backgrounds, our love for riding and passion for adventure have made us really close, like family.”

Helping fuel the growth of the sport among women is the Harley-Davidson Rider’s Edge program, which teaches basic riding skills at select Harley-Davidson dealerships across the country. Since the program’s inception in 2000, more than 40,000 people have learned to ride a motorcycle, and 42 percent of the students are women.

“I have to admit, I was a little intimidated before I took the class,” said Weeden. “But, learning to master the motorcycle and feeling the wind in my face changed that. Now riding is one of my greatest and most sacred pleasures.”

Although, the number of women riders has been on the rise for the last decade, women have been riding motorcycles since the very early days of the sport. One of the most famous was Vivian Bales, who in the summer of 1929, traveled for 78 days, covering nearly 5,000 miles on her 45 Twin D model Harley-Davidson. In each town she rode through, Bales met with local dignitaries and Harley-Davidson dealers — she even had the opportunity to meet President Herbert Hoover.

Following her famous ride, Bales continued to ride motorcycles and performed stunts at races around Tallahassee, Fla. Like many women riders today, Bales stated that her Harley-Davidson experience was one of her most significant of her life.

MBA Holdings, Inc. (OTC BB: MBAH) is pleased to announce the acquisitions of iDigital, LLC as well as Street Eagle Motorcycle Rental/Rent 2 Ride Motorcycle Rentals.

iDigital is the supplier of a line of chotchkies, specialty marketing products designed to be given to customers as a personal memento of their recent experience with a company’s products, such as Motorcycle and Auto Rentals and Purchases.

Rent 2 Ride has two (2) licensed rental stores operating, one (1) in Scottsdale, Arizona, and one (1) in Albuquerque, New Mexico. Street Eagle (www.streeteagle.com) and Rent 2 Ride (www.rent2ride.com) are specialty motorcycle rental companies specializing in Harley-Davidson, Metric and Custom Motorcycle rentals. With several additional stores planned for the near future. Street Eagle has processed in excess of 25,000 rental reservations in the last two years.

MBA owns and operates Blue Sky Motorcycle rentals in fourteen (14) locations in Hawaii and across North America.

Gaylen Brotherson, CEO, of MBA Holdings, Inc., summarized the deals as both timely for and indicative of the company’s future growth. “With these acquisitions, MBA Holdings can begin to significantly enhance sales revenues and profitability,” stated Mr. Brotherson. “We are very optimistic with respect to adding shareholder value in the coming quarters,” he concluded.

M.B.A. Holdings, Inc., through its wholly owned subsidiary, Mechanical Breakdown Administrators, Inc., markets and administers vehicular mechanical breakdown insurance policies on automobiles, light trucks, recreational vehicles, motorcycles, boats and certain automotive components and sells contracts for repair services to vehicles and certain vehicle components at www.mbadirect.com. Its second subsidiary, National Motorcycle Dealers Association, LLC (”NMDA”), provides products and programs for Motorcycle Dealership via memberships in NMDA, and it has products like extended warranties for new and used motorcycles, tire and wheel warranties, Gap Coverage, Credit Life, ATVs and trailers. NMDA also provides and/or plans to provide Gap Coverage, Motorcycle Leasing and Financing, Credit Life/Accident insurance, Open Lot and Garage Keepers Legal Coverage, Health insurance and Family Hospitalization insurance for Dealership owners, employees and their families.

n partnership with Jane magazine, Harley-Davidson (NYSE: HDI) is cruising the back roads of America to salute women who take life by the handlebars.

The first-ever national search — titled the Spirit of Freedom Contest — will recognize and celebrate every-day women who overcome fears, obstacles and boundaries to achieve a life-long dream. One contest grand prize winner will walk away with a new Sportster 883 Low and Rider’s Edge New Rider Course training.

“The adrenaline rush of riding a motorcycle out on the open road is like no other experience,” said Kathleen Lawler, vice president of communication at Harley-Davidson Motor Company. “Through this contest, we are saluting women who embody that spirit of adventure through small gestures, inner strength and every-day selfless acts.”

The Spirit of Freedom recognitions will not focus solely on motorcycle riders. Instead, the awards will honor women who achieve independence in many ways.

“The Spirit of Freedom Awards will honor those incredible women who often go unrecognized,” said Annemarie Conte, editor from Jane magazine. “Whether it’s a mother who returns to school after raising her family, a friend who always provides a shoulder to cry on or an athlete pushing her limits to complete a marathon, we are teaming up with Harley-Davidson to salute women who live life every day to the fullest.”

ominate yourself or another woman who possesses a strong Spirit of Freedom by visiting www.harley-davidson.com for an official award entry form, judging criteria and program rules. Any woman 18 or older is eligible to win. To nominate someone, simply submit a 200-word essay on how she showcases her spirit. The award will be presented in August during the 2005 Sturgis Rally and Races in Sturgis, S.D.

All entries must be submitted to Spirit of Freedom Awards Program c/o Weber Shandwick, 676 N. St. Clair, Suite 1000, Chicago, IL 60611. Nominators must be at least 18 years of age. Entrants are encouraged to include a picture of the nominee. All entries must be postmarked and submitted by June 30, 2005.

MORE WOMEN HITTING THE OPEN ROAD

More and more women embrace the open road. In fact, the Motorcycle Industry Council reports that women now represent one in 12 U.S. motorcycle owners. The number of female Harley-Davidson owners has grown from only 600 in 1985 to more than 30,000 last year — accounting for nearly 10 percent of new Harley buyers.

Helping fuel the growth of the sport among women is the Harley-Davidson Rider’s Edge program, which teaches basic riding skills at select Harley-Davidson dealerships across the country. Since the program’s inception in 2000, more than 40,000 people have learned to ride a motorcycle, and 42 percent of the students are women.

For more information about The Spirit of Freedom Award, visit www.harley-davidson.com.

Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services. Harley-Davidson Motor Company produces heavyweight street, custom and touring motorcycles and offers a complete line of motorcycle parts, accessories, apparel and general merchandise. Buell Motorcycle Company produces sport motorcycles in addition to motorcycle parts, accessories and apparel. Harley-Davidson Financial Services, Inc. provides wholesale and retail financing and insurance programs to Harley-Davidson/Buell dealers and customers.

MAYFIELD VILLAGE, Ohio — The Drive Group of Progressive Insurance Companies Debunks Common Car Insurance Myths; Insurance Agents and Brokers Can Help Consumers Separate Fact From Fiction

The color of a car influences how much it costs to insure it, Comprehensive coverage protects drivers in all situations because, after all, it’s “comprehensive,” and car insurance companies can charge whatever they want. Have you ever thought one or more of these statements to be true? You’re not alone.

A recent online survey of 1,000 drivers conducted by DriveSM Insurance from Progressive (NYSE:PGR), the largest writer of personal auto, motorcycle, recreational vehicle and boat insurance through independent insurance agencies in the U.S., finds many drivers accept common car insurance myths as true. Here’s a sampling of the survey findings along with the facts behind each:

– Myth: Car insurance companies consider vehicle color when
determining rates.
Survey Says: Twenty-five (25) percent of drivers surveyed
mistakenly believe that the color of their car affects their
auto insurance rate.
Fact: Color is not used to calculate auto insurance rates.
Information that is used includes the vehicle’s year, make,
model, body type and engine size, as well as information
about the driver.

— Myth: Car insurance rates are not regulated and car insurance
companies can charge whatever they want.
Survey Says: More than half of those surveyed (54 percent)
did not know that each state has a regulatory body that
oversees insurance companies operating within that state.
Fact: Each state has regulators who review the information
companies collect as well as the rates they charge; insurers
cannot deviate from those rates.

— Myth: Comprehensive coverage protects drivers in all
situations.
Survey Says: Almost half of drivers surveyed (48 percent)
wrongly believe their car insurance policy’s Comprehensive
coverage protects them in all situations because, after all,
it’s “comprehensive.”
Fact: Comprehensive coverage is one type of protection
available on an auto insurance policy (others being Collision,
Uninsured Motorist, etc.). Comprehensive coverage pays only
for damage caused by an event other than a collision, such as
fire, theft, or vandalism; it also covers weather-related
(e.g., hail, flood) damage, damage caused if a vehicle
collides with an animal and it provides a rental car if a
vehicle is stolen.

— Myth: Rental reimbursement coverage protects drivers who crash
their rental car while on vacation.
Survey Says: One out of three drivers surveyed (33 percent)
did not know what protection is provided through rental
reimbursement coverage.
Fact: Rental reimbursement coverage pays for the cost of a
rental car if a driver’s personal car is in the shop as a
result of an accident and he or she needs a replacement
vehicle.

— Myth: Bundling insurance coverages always results in a cheaper
car insurance rate.
Survey Says: The majority of drivers surveyed (51 percent) say
they’ll always get a better rate if they “bundle” their
insurance, i.e., buy their car insurance policy from the same
company that insures their home.
Fact: Just because a driver buys more than one product from
the same insurance company doesn’t always mean they are
getting the best rate available. In many cases there are
savings to be had by talking with an independent agent or
broker who can create a custom insurance package with
policies from competing insurance carriers.

— Myth: Car insurance rates go down dramatically when drivers
turn 25.
Survey Says: Sixty (60) percent of those surveyed mistakenly
think rates go down drastically when a driver turns 25.
Fact: Young and older drivers typically have the most car
crashes and different car insurance companies’ customers have
different claims experiences. At Drive Insurance, for
example, crash frequency starts to decline when a driver
reaches their mid to late twenties. However, when developing
an auto insurance rate, insurers generally consider a variety
of other information about the driver in addition to their
age, including information about their vehicle, their past
claims history and the claims experience for other customers
like them. One or more of these pieces of information could
lead to a driver getting a higher, lower or the same rate
when they turn 25.

“Car insurance is complicated stuff. Adding to the confusion are the myths floating around out there,” says Rick Crawley, product development general manager, Drive Insurance from Progressive. “It’s important for drivers to have accurate information so they can make more informed decisions. We hope that by debunking these myths, and by letting people know that independent agents and brokers can help separate fact from fiction, they’ll ultimately get the right coverage and services for their needs.”

Drive Insurance is represented by more than 30,000 independent insurance agencies across the country, and it’s easy to find one locally. Simply go to driveinsurance.com and use the “Find an Agent” tool to locate an independent agent or broker who sells Drive Insurance.

The Progressive Group of Insurance Companies, in business since 1937, is the nation’s third largest auto insurance group and the largest writer of personal auto insurance through independent agencies in the U.S. based on premiums written. Progressive companies under the DriveSM Insurance from Progressive brand provide consumers with competitive prices and superior service along with knowledgeable advice from an independent agent or broker. More information can be found at driveinsurance.com. The Common Shares of The Progressive Corporation, the holding company, are publicly traded at NYSE:PGR.

Rick Crawley, product development general manager, Drive Insurance from Progressive, is available for interview.