Bike crashed payments wont stop

[jukon]

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Hi...

I'm having some problems with my Ins co (TD Melloche). I was involved in a not at fault accident 3 months into my policy and they continue to take monthly payments from my account even after my bike is declared a total loss and in their possession. I called them and they gave me some BS and said they aren't going to refund me. The first time I called they said they would make sure it didn't happen again and it did, now it's three months extra payment. Has anyone else had problems like this? What else can I do?

 

[Baggsy]

Hi...

I'm having some problems with my Ins co (TD Melloche). I was involved in a not at fault accident 3 months into my policy and they continue to take monthly payments from my account even after my bike is declared a total loss and in their possession. I called them and they gave me some BS and said they aren't going to refund me. The first time I called they said they would make sure it didn't happen again and it did, now it's three months extra payment. Has anyone else had problems like this? What else can I do?

Normally you pay insurance a year at a time. Some places let you pay monthly over that year. When does your policy expire? Did you cancel it?

 

[GreyGhost]

Read vifferfun's sticky on used vs paid premium, Assuming your crash was in the summer, you would owe a lot more than you had paid. That being said, TD should be able to tell you what was owed and let you clear it up (and I highly doubt there would be much more after riding for 3 months and paying for 6.) Keep harassing TD or ask to speak to their ombudsman if the first line can't help you.

 

[Malks]

First of all, I am not connected with the Insurance industry in Ontario and have my own issues with them.

However, I am wondering why you would expect your payments to stop, when you had only made three monthly payments. If you had paid the entire policy in one payment when you began the insurance coverage at the start of the season, totaled the bike three months later and then cancelled the policy, I would doubt there would be anything left to refund at that point. Since you are making monthly payments you had not likely reached the point where you had paid what was owed on the policy by the time you crashed.

Think of it this way, you take a 12-month loan to buy something that stops working, would you stop making payments to the bank because you no longer have the use of the item?

 

[ZX600]

Hi...

I'm having some problems with my Ins co (TD Melloche). I was involved in a not at fault accident 3 months into my policy and they continue to take monthly payments from my account even after my bike is declared a total loss and in their possession. I called them and they gave me some BS and said they aren't going to refund me. The first time I called they said they would make sure it didn't happen again and it did, now it's three months extra payment. Has anyone else had problems like this? What else can I do?

I had that problem with State farm, they took 2 payments after my bike was totalled, one phone call and they refunded me back from the day of the accident (the day in which I reported it) take it to the managerial level if you haven't done so yet.

Cancelling your insurance on your own accord will cause what others are saying, having to continue paying or having to pay a cancellation premium, but crashing your bike at a non at fault accident, will void those clauses.

I am not an expert, and maybe your company has different rules than state farm, I am only going by what happened to me

 

[Aleks Hara]

Insurance companies will also keep the policy in force (along with the regular withdrawals) until the claim is deemed closed. If you don't end up using a rental vehicle provided by them, then the original date of loss is used to backdate the cancellation (provided you actually want to cancel, and will not be getting a replacement - most companies can keep a policy running without a vehicle for about 2 - 4 weeks to give you time to obtain a new one). If you do use their rental, then the cancellation date of the policy will be the date you return the rental. Other benefits such as bodily injury, income replacement, rehab, etc... would continue to be available after the policy is cancelled.

I am not an expert on TD, but keeping 100% of the annual premium for 3 months of coverages doesn't sound right. I can imagine it being around 50 - 70% at most. Therefore, they are probably taking withdrawals until they make that 50-70% and then they should stop. You might want to speak with them and find out what their percentage of used premium is for 3months of coverage.

 

[jukon]

Think of it this way, you take a 12-month loan to buy something that stops working, would you stop making payments to the bank because you no longer have the use of the item?

But I didn't buy something, it's a service they are providing. If I am no longer in need of that service (through no fault of my own) why I am being charged for it?

 

[jeffjones]

But I didn't buy something, it's a service they are providing. If I am no longer in need of that service (through no fault of my own) why I am being charged for it?

Because as everyone has said, You probably haven't fully paid for your insurance.
Motorcycle insurance is not a month to month basis, As you put it on in June and crash your bike in August, You are not fully paid up after 3 payments.

The only answer for you to know exactly what is going on is to call and try not to be rude and ask why, If that person can't answer you ask for the next person up.

 

[W8INLINE]

WOW.... maybe the rules have changed since the last time I wrote of a car.... I pay month to month and when I wrote off my car the payments stopped once the vehicle was no longer in my possession.

I have never been on an annual contract type basis with any insurance company, and I have never heard of anyone until I read all your posts. And if insurance is not like gym memberships or cell phone contracts, that lock you in for 12 months, then I don't see the reason why jukon can't cancel after 3 months for whatever the reason is.

Motorcycle insurance is not a month to month basis, As you put it on in June and crash your bike in August, You are not fully paid up after 3 payments.

I am not disagreeing with this since I am a noob with motorcycles, and you probably know more than me on the subject, but It makes no sense to me. I just bought a bike in June. I ride it for a month, then realize I hate riding, or my best friend died on a motorcycle crash or whatever, and I decide to sell the bike and never ride again a month later. I still owe the insurance a balance of 11 or so months? This makes no sense to me

 

[jeffjones]

WOW.... maybe the rules have changed since the last time I wrote of a car.... I pay month to month and when I wrote off my car the payments stopped once the vehicle was no longer in my possession.

Keyword : Car

I have never been on an annual contract type basis with any insurance company, and I have never heard of anyone until I read all your posts. And if insurance is not like gym memberships or cell phone contracts, that lock you in for 12 months, then I don't see the reason why jukon can't cancel after 3 months for whatever the reason is.



I am not disagreeing with this since I am a noob with motorcycles, and you probably know more than me on the subject, but It makes no sense to me. I just bought a bike in June. I ride it for a month, then realize I hate riding, or my best friend died on a motorcycle crash or whatever, and I decide to sell the bike and never ride again a month later. I still owe the insurance a balance of 11 or so months? This makes no sense to me

He can cancel whenever he wants but I have SF so with them, If you ride for June and cancel, You owe them 18% of your yearly premium. There is a sticky at the top of this section from Viffer that explains it, I am not 100% how TD works but it is really a good idea to understand your insurance and how it works before signing it.

 

[m.breen]

I had a beef with my insurance company once, ( (one payment was nsf) when I called to rectify it, the guy on the phone (Sam) was rude to me, so I was rude back, he threatened to cancel my policy...maybe you have to be not so nice and they will cancel it?

 

[jukon]

I had a beef with my insurance company once, ( (one payment was nsf) when I called to rectify it, the guy on the phone (Sam) was rude to me, so I was rude back, he threatened to cancel my policy...maybe you have to be not so nice and they will cancel it?

It's not a matter of cancelling it. They told me they cancelled it the day after my accident. I'm trying to get my money back because they are taking payments after the policy was cancelled.

 

[jeffjones]

It's not a matter of cancelling it. They told me they cancelled it the day after my accident. I'm trying to get my money back because they are taking payments after the policy was cancelled.

Which months did you have insurance on for? That way you can get a more accurate answers to your question.

Here is the Premium% per month:

JAN: 0.0%
FEB: 0.0%
MAR: 5.0%
APR: 10.0%
MAY: 10.0%
JUN: 20.0%
JUL: 20.0%
AUG: 20.0%
SEP: 10.0%
OCT: 5.0%
NOV: 0.0%
DEC: 0.0%


Got from Viffers post in the sticky section.
http://www.gtamotorcycle.com/vbforu...immum-policy-Want-to-know-your-Penalty-Refund

 

[elton_t]

Which months did you have insurance on for? That way you can get a more accurate answers to your question.

Here is the Premium% per month:

JAN: 0.0%
FEB: 0.0%
MAR: 5.0%
APR: 10.0%
MAY: 10.0%
JUN: 20.0%
JUL: 20.0%
AUG: 20.0%
SEP: 10.0%
OCT: 5.0%
NOV: 0.0%
DEC: 0.0%


Got from Viffers post in the sticky section.
http://www.gtamotorcycle.com/vbforu...immum-policy-Want-to-know-your-Penalty-Refund

0%? so free insurance from Nov-Feb?

make sure it makes sense before copying something

I have the premium per month data from SF and it's clearly very different from yours.

 

[ZX600]

Probably someone that actually knows what they are talking about should post in here. There is a lot of wrong information on this thread.

 

[nakkers]

Doesn't matter if the claim is at fault or not. When there is a claim, the insurance coverage doesn't stop. Depending on your policy, there can be loss of use and the option to replace your vehicle (bike or cage). Just because you opt to take a settlement doesn't mean your policy is no longer in force. You have to cancel it. It's often required you provide a signed cancellation request. It's up to the insurance company to determine how far back they wish to accept the back date. Considering you had a claim and couldn't ride, they may consider back dating the full amount.


One thing to consider. Insurance premium is typcally charged up front for coverage over a period of time. With seasonal things like boats, bikes, atvs etc. they understand certain months wont be used but, it's possible they "could" be. In any event, monthly payments is simply a way to finance the premium over a period of time. It's not like cable or a gym membership. Each month's payment isn't truly towards a month's coverage.

PS. You can also notify your bank to put a stop payment on the automatic withdrawals.

 

[jeffjones]

0%? so free insurance from Nov-Feb?

make sure it makes sense before copying something

I have the premium per month data from SF and it's clearly very different from yours.

If you can comprehend what was posted it states that if you make equal payments through out the year and start your insurance in March and ride till the end of October you owe 100% of your yearly premium.
Also if you look at the link I attached it clearly states for TD insurance and not SF.

make sure it makes sense before trying to prove someone wrong

 

[VifferFun]

I am not disagreeing with this since I am a noob with motorcycles, and you probably know more than me on the subject, but It makes no sense to me. I just bought a bike in June. I ride it for a month, then realize I hate riding, or my best friend died on a motorcycle crash or whatever, and I decide to sell the bike and never ride again a month later. I still owe the insurance a balance of 11 or so months? This makes no sense to me

Bikes are seasonal, cars are not. If your annual premium is $1200, the insurance company does you a favour and allows you pay in 12 equal monthly installments, even in the winter when the bike isn't being used. Rather than paying, say, $200/mo over the Spring/Summer, they let you pay $100/mo year-round. Suppose you buy a bike and ride for the month of August, you will have paid $100 but "used up" $200 of insurance services, and you are on the hook for $100 as a result. I have posted very detailed explanations in my stickies for State Farm, TD, and Jevco.

 

[VifferFun]

It's not a matter of cancelling it. They told me they cancelled it the day after my accident. I'm trying to get my money back because they are taking payments after the policy was cancelled.

What day did your policy start, and what day was your policy cancelled?

 

[VifferFun]

0%? so free insurance from Nov-Feb?

make sure it makes sense before copying something

I have the premium per month data from SF and it's clearly very different from yours.

The premium-per-month from State Farm is very different because each company has different premium earning schedules. This is why I post a separate sticky for each company.

It may seem like it doesn't make sense, but that is indeed TD's correct premium-earning schedule. Yes, they do provide coverage free of charge for November to February, but I'm sure that they have processes in place to ensure that people don't abuse the system by *only* purchasing insurance for the winter and then cancelling. TD is unique, because they force all motorcycle policies to renew on March 1 and charge 7 equal monthly installments from March to September. Read my sticky for more info.

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