Cancellation fee after selling bike?

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HonDerpa500r

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Looking at getting a new bike this year, and I'm hoping to get it within a couple months if everything goes as planned.
I've currently been insured on my bike right now since September.

My question is, does anyone have a ballpark figure of what my cancellation fee will be once I sell my current bike and switch to a different insurance company (Current insurance company won't insure a new rider on a 600 SS, without taking an arm and a leg with it)
 
There is a sticky in this forum that describes the pro-rating scheme that is typically used
 
You just started the policy in September?

Then that's good news as you'll probably get a good portion of the premiums you've paid all winter refunded, actually. Some insurers may charge a cancellation fee or a penalty amount (varies from company to company), but you'll still end up with a refund.

Just take note that if you're starting another policy in the spring this time around, the opposite will hold true if you try to cancel again in the fall - you'll get a big BILL for the remainder of your summer premiums that you would have paid for over the winter.
 
Motorcycle insurance companies know most of us don't ride our bikes in a snow storm in January so your policy is priced and your premium is earned based the typical riding season. This means how much premium you've earned if you are looking to cancel mid-term is determined by when you started your policy and when you are looking to cancel your policy, not just by how many days it was in force.
Most insurance companies use the table bellow to calculate your earned premium. When it comes time to cancel they will calculate how much premium you have earned by the time of year you have had your policy active and subtract your payments from the total earned premium. If you started your policy at the beginning of September and cancelled at the end of march you would have earned 20% of your total policy premium. If your annual premium was $2400 and you are paying it in 12 equal installments with your first installment in September, and you 7th installment in March you would have paid a total of $1400. Your earned premium would be ~$480, so you would get a refund of ~$920. Most companies will charge a minimum retained premium so if you start a policy in January and cancel in January which has a 0% earned premium you would still be responsible for a small payment to cover the costs of setting up your policy.
If you are looking to cancel be sure to ask your company about their specific motorcycle cancellation policies and how they calculate your earned premium before you cancel, but hopefully the table bellow will give you a better understanding of how motorcycle policies differ from a regular auto policy.
[TABLE="class: cms_table_aqua_table, width: 870"]
[TR]
[TH="class: cms_table_coverage, align: center"]Month[/TH]
[TH="class: cms_table_coverage_amt, align: center"]Earned Premium[/TH]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]January[/TD]
[TD]Nil[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]February[/TD]
[TD="bgcolor: #F7F7F7"]Nil[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]March[/TD]
[TD]5%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]April[/TD]
[TD="bgcolor: #F7F7F7"]10%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]May[/TD]
[TD]10%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]June[/TD]
[TD="bgcolor: #F7F7F7"]20%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]July[/TD]
[TD]20%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]August[/TD]
[TD="bgcolor: #F7F7F7"]20%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]September[/TD]
[TD]10%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]October[/TD]
[TD="bgcolor: #F7F7F7"]5%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]November[/TD]
[TD]Nil[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]December[/TD]
[TD="bgcolor: #F7F7F7"]Nil[/TD]
[/TR]
[/TABLE]
 
Op. Contact your insurance company and tell them you are changing bikes. And the new one rates is unrealistic.

They will cancel flat rate without penalty due to the material change and understanding the can’t provide you with affordable rates.


My wife had to change the coverage of her vehicle. The increase was ridiculous.

Told them we had to go elsewhere and they cancelled mid term without an issue.

A long as it’s on the up and up. Should be ok.


If you cancel because you sold the bike and PLAN on buying a new bike and haven’t purchased yet, don’t think you’ll receive the same treatment.


And as been posted, if you have been paying all winter, the portion of premium you’ve paid hasn’t even been used yet. Should receive a decent refund.


Sent from my iPhone using Tapatalk
 
Same as others have posted. I started riding in the month of August, few years later I upgraded in April. When I switched from State Farm to Intact I received a refund for paying my premium all winter long when the weighting was low. Was a nice bonus.
 
That's odd. Based on the info on this thread I should be getting a refund, but broker told me I'll need to pay more money ($1xx) to cancel. My policy is with intact and started mid july. I'm thinking of cancelling before end of this month (march). My annual premium is $1450. Shouldn't I be getting some money back ?

Based on the table, I should've earned 50% premium by end of March this year, which is 50% * $1450 = $725. My total payments by end of July will total $960 (I think Intact doesn't take last month's payment upfront). Refund should be roughly $235. Is there cancellation penalty tacked on top of this ?
 
Last edited:
They may have some penalties or partial month clauses or something that are causing that since you did use quite a bit of the summer weighting. Or perhaps their weighting tables are different than others. Ultimately every company can be different if they want.
 
PrivatePilot said:
They may have some penalties or partial month clauses or something that are causing that since you did use quite a bit of the summer weighting. Or perhaps their weighting tables are different than others. Ultimately every company can be different if they want.
Click to expand...

Sucks. Losing so much money on this BS insurance game in the GTA. I'm cancelling because they won't write the bike I just purchased. They should waive the cancellation penalty in these cases. Crooks!
 
I just cancelled my insurance and the guy said I might owe them 15-20 percent of my premium if I haven’t paid it.
I’ve paid monthly, and have paid every month from September to March. My yearly insurance rate is $1600 right now.

Do you guys think I’ll get a refund or have to pay them?
My earned premium rate is the same as the chart that a previous posted put.

thanks
 
HonDerpa500r said:
I just cancelled my insurance and the guy said I might owe them 15-20 percent of my premium if I haven’t paid it.
I’ve paid monthly, and have paid every month from September to March. My yearly insurance rate is $1600 right now.

Do you guys think I’ll get a refund or have to pay them?
My earned premium rate is the same as the chart that a previous posted put.

thanks
Click to expand...


Most likely you'll have to pay, I was in a similar situation last season and had to pay the cancelation fee regardless of the reason.
 
Just got my policy cancellation letter from Intact. I can't seem to understand whether I owe them money or I'm getting a refund, because the amount is much much larger than I expected.

On the statement, it says "Your next payment: Refund Due -$362". How can refund be negative ? Does that mean I owe them ? I'll call my broker tomorrow morning to confirm, but if someone has any idea from past experience with Intact, please let me know.

Breakdown, as seen on the statement:

Prior Balance $362
Cancelled Policy -$715
Interest Charge -9.30

New Balance -362

My annual premium is $1450, and renews mid July. I cancelled on March 20 and last payment went out on March 14. Don't know whether to cry or celebrate.

Hope I'm overthinking this, and it is a refund.

Edit: I did the calculation. Earned roughly 50% premium from mid July 2017 to end of March 2018.
Made total of 9 payments so far of $120.72 each

(9*120.72) - (50% * 1450) = roughly $361 .. so should be a refund?
 
Last edited:
You're getting $362 back.
 
I ended up getting $630 bucks back.. which I’m very confused about..
September-March is 7 months, 7x160= 1120.
so I got back more than half of what I paid in the 7 months I had my bike insured.. not that I’m complaining, I just didn’t think I’d be getting back so much.
 
HonDerpa500r said:
I ended up getting $630 bucks back.. which I’m very confused about..
September-March is 7 months, 7x160= 1120.
so I got back more than half of what I paid in the 7 months I had my bike insured.. not that I’m complaining, I just didn’t think I’d be getting back so much.
Click to expand...
September till March means you earned 20% of the premium.

Earned premium = 20% x ($160*12mo) = $384
Paid premium = $160 * 7 = $1120
Refund = $1120 - $384 = $736 minus fee/penalty

Makes sense to me that you got $630.
 
roadrash said:
September till March means you earned 20% of the premium.

Earned premium = 20% x ($160*12mo) = $384
Paid premium = $160 * 7 = $1120
Refund = $1120 - $384 = $736 minus fee/penalty

Makes sense to me that you got $630.
Click to expand...

Makes sense now. Science was never my best subject
 
MitchellandWhaleinsurance said:
Motorcycle insurance companies know most of us don't ride our bikes in a snow storm in January so your policy is priced and your premium is earned based the typical riding season. This means how much premium you've earned if you are looking to cancel mid-term is determined by when you started your policy and when you are looking to cancel your policy, not just by how many days it was in force.
Most insurance companies use the table bellow to calculate your earned premium. When it comes time to cancel they will calculate how much premium you have earned by the time of year you have had your policy active and subtract your payments from the total earned premium. If you started your policy at the beginning of September and cancelled at the end of march you would have earned 20% of your total policy premium. If your annual premium was $2400 and you are paying it in 12 equal installments with your first installment in September, and you 7th installment in March you would have paid a total of $1400. Your earned premium would be ~$480, so you would get a refund of ~$920. Most companies will charge a minimum retained premium so if you start a policy in January and cancel in January which has a 0% earned premium you would still be responsible for a small payment to cover the costs of setting up your policy.
If you are looking to cancel be sure to ask your company about their specific motorcycle cancellation policies and how they calculate your earned premium before you cancel, but hopefully the table bellow will give you a better understanding of how motorcycle policies differ from a regular auto policy.
[TABLE="class: cms_table_aqua_table, width: 870"]
[TR]
[TH="class: cms_table_coverage, align: center"]Month[/TH]
[TH="class: cms_table_coverage_amt, align: center"]Earned Premium[/TH]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]January[/TD]
[TD]Nil[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]February[/TD]
[TD="bgcolor: #F7F7F7"]Nil[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]March[/TD]
[TD]5%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]April[/TD]
[TD="bgcolor: #F7F7F7"]10%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]May[/TD]
[TD]10%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]June[/TD]
[TD="bgcolor: #F7F7F7"]20%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]July[/TD]
[TD]20%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]August[/TD]
[TD="bgcolor: #F7F7F7"]20%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]September[/TD]
[TD]10%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]October[/TD]
[TD="bgcolor: #F7F7F7"]5%[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth"]November[/TD]
[TD]Nil[/TD]
[/TR]
[TR]
[TD="class: cms_table_pseudoth, bgcolor: #F7F7F7"]December[/TD]
[TD="bgcolor: #F7F7F7"]Nil[/TD]
[/TR]
[/TABLE]
Click to expand...

Thank you for this table! It's spot on for Intact. Happy to have learned how to factor in earned premium when cancelling policies!

Got my refund today, and it's exactly what I calculated it to be.
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