Continuous Coverage? | GTAMotorcycle.com

Continuous Coverage?

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Yusiro

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Hey all,

I've searched through the forum and can't find an answer for the situation I'm in.

I've had insurance on my 1982 xs400 with State farm for two years. The renewal date is May 15th. I sold that bike last night, it is now gone. I've got a new bike (2002 Vulcan 800 Classic), in my garage, without insurance on it yet. The insurance for the new bike from State Farm is 150$ more per year than where I was planning on getting it from (TD).

My question is, if I were to cancel the State Farm policy today, then not get a policy on the new bike with TD until, say, April - will there be a penalty with the new insurance for the time with no coverage on a bike? Is it possible to just shift (and upgrade) the coverage from my old bike to the new one, avoiding any disruption? Sorry, this is my second bike so I've never had to deal with this type of thing before.

Just trying to judge if I should get the new insurance first then cancel the old, if it even makes a difference.

Thanks for the help!
 
Why not just start your policy now with TD anyways if you have the bike? I believe you don't even start using any of your premium until at least march?

Get some months of your premium paid so you don't end up owing money like you are going to do on your SF policy.
 
Also besides theft, what happens if your garage catches fire the insurance won't cover your bike as they will say ti should have been insured on it's own. Even though your paying a premium this time of year, very very little of it is actually being used, Just the comprehensive is used the "riding premiums will be used mainly during the season.

Letting the insurance "lapse" could, (maybe not this policy, affect you in the future if you go to another company as you can't truthfully say you were "continuously insured" for XX years).

So put the new bike on the SF policy until May and then notify them your not renewing and go with the new company at that time.
 
TD prorates the premium so you really aren't paying anything to have it insured now. I think they consider April 1 to October 31st as the riding dates (for cancellation/rebate purposes) but cover you for the full year.

You just need to figure out if it's best to insure the new bike with Statefarm and switch to TD. Or just cancel the Statefarm policy and insure the new bike with TD now. Probably worth calling TD to find out the cost of insuring now vs. later in the year.
 
Thanks for the help all. I took all this into account, and called state farm today to see what penalties I would incur from cancelling early (in order to go over to TD). The agent said - ok, but would you give me a chance to quote on your car insurance? If you do both, your full coverage quote on the bike goes from 1940 down to 1150. Needless to say, I'm now waiting on the quote for car insurance to see what to do going ahead, but have switched the bike on the coverage so it's covered in case of theft/fire.

Didn't realize that the drop was that drastic, here's hoping the car insurance quote comes at least close to what I'm paying now!
 
Yusiro said:
Thanks for the help all. I took all this into account, and called state farm today to see what penalties I would incur from cancelling early (in order to go over to TD). The agent said - ok, but would you give me a chance to quote on your car insurance? If you do both, your full coverage quote on the bike goes from 1940 down to 1150. Needless to say, I'm now waiting on the quote for car insurance to see what to do going ahead, but have switched the bike on the coverage so it's covered in case of theft/fire.

Didn't realize that the drop was that drastic, here's hoping the car insurance quote comes at least close to what I'm paying now!
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Bundling you car with SF will drop you bike policy 40%.
On the other hand my car insurance was 60% higher through them.

Sent from my HTC One S using Tapatalk
 
Have you gone to the MTO to put the new bike in your name (new ownership)? They require the bike to be insured when this happens.
 
I'm not sure how they did it, but GP bikes already put it in my name Fit Unplated (no need for a safety either apparently). It's my understanding that once I have insurance I then go into the MTO at that point and transfer the plates over from the old bike.
 
redridernl said:
The link doesn't work. I'm curious about this because they all quote based on this. In fact I'm waiting on answer regarding this very issue.
Click to expand...

Works fine for me.....


[h=2]The Regulation
[/h]
Ontario Regulation 664 was amended effective November 1, 1996 to prohibit the use of lapses in insurance coverage as a rating variable, except in those limited circumstances set out in the regulation. A copy of the regulation is attached.

This regulation prohibits an insurer from considering a lapse in insurance coverage for purposes of risk classification unless:


  • the insured person was convicted of driving without insurance during the lapse in coverage;
  • the lapse resulted from the termination of an automobile insurance policy because the insured person failed to pay the premiums due under the policy;
  • the lapse resulted from the suspension of the insured person's driver's license as a result of a driving conviction;
  • the lapse resulted from the insured person's attempt to misrepresent their driving record due to earlier accidents or convictions, in order to avoid paying higher insurance premiums.
Insurers cannot use any lapses in rating, other than those set out in the regulation. In addition, surrogate rating variables may not be used to circumvent the intent of the regulation (see examples below). The regulation will be strictly enforced by the OIC.


[h=2]Application of the Regulation
[/h]
In order to provide guidance to insurers, agents and brokers, we are providing both examples of criteria that insurers cannot consider and criteria that insurers can consider in determining automobile insurance rates.

The following are examples of criteria insurers cannot consider in assigning a driving record or in determining automobile insurance rates:


  • the number of years of continuous insurance;
  • the length of time a person has been insured;
  • any lapse in insurance coverage that was not due to a reason set out in the regulation;
  • the length of time a person has owned or leased a vehicle;
  • whether the insurer can verify the claims history of the person.
The following are examples of criteria insurers can consider in determining automobile insurance rates:


  • the length of time a person has held a driver's license;
  • the number of at-fault accidents;
  • whether a person has been a named insured or a listed driver on an automobile insurance policy.
Click to expand...
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