Different bikes every year. | GTAMotorcycle.com

Different bikes every year.

joey12jet1

joey12jet1

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If i buy bike a month or two before riding season starts then sell a month or two before season ends, will i get in trouble getting insurance for the years to come?

This way i can get up and down engine displacement and be excited for different(not new bikes to avoid big depreciation) bikes every season.

Pros:
1. no more storage for winter.
2. Diff bikes every yr.
3. Pay 8 to 10 mo of insurance( maybe this will fall on cons if i pay more insurance when they notice i change bikes each yr.)
4. Bike shopping( who doest get excited getting a new(not brand new, used but new to me) bike

Cons:
1. Insurance(will every company drop me if they find out i change every yr? How does that work? THIS is the main concern of the thread.)
2. Pays a bit higher on bike if i buy during riding season(maybe less if i buy a month or 2 before season starts)
3. Sells a bit lower if i sell at the end of the season.

Will the pros outweigh the cons?

Thanks

Note:
Im a new rider and wants to experience range of diff bikes

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Just my opinion.

This sounds great but if you have storage for two bikes I recommend buying your new bike in the fall and selling your old bike in the spring.

This would keep your insurance continuous and allow you to benefit from the small pricing disparity between the seasons.

You would have to risk having a uninsured bike in your garage over the winter and would have to store both.

Just my 2 cents.

On another note usually takes me about 3 years to get to know and master the bikes I have owned to date.
 
Insurance during winter months is like $10/mo, not much saving there by avoiding insurance during those months.
 
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You pay for the full premium one way or another. There is no benefit to your proposal. The best way to try various bikes is to go to demo days, have generous friends or be patient and hold on to a bike a little longer.
 
samurai said:
Insurance during winter months is like $10/mo, not much saving there by avoiding insurance during those months.
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Why do i get to pay the same payment? No difference on winter or summer payment. From statefarm.

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matt365 said:
Not to mention taxes, licensing, safety,... every time you switch.
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I can get around with taxes and safety if i can get the seller to do the safety and agree to lower the price on paper but i will pay what price we agreed on.

Licensing: we do this every yr or 2 dont we? So, one bike or more not much difference there because we renew every yr.

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nfq said:
You pay for the full premium one way or another. There is no benefit to your proposal. The best way to try various bikes is to go to demo days, have generous friends or be patient and hold on to a bike a little longer.
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There is no benefit on insurance premium but storage for winter is still a benefit for me.
Trying various bikes is different from owning different bikes. I want to own them. Hehe.

I guess i have to wait 2 or 3 yrs before changing bikes as mentioned above.

Thanks

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Unless you're declaring a $1 for your bike you're gonna be paying taxes
 
RockerGuy said:
Unless you're declaring a $1 for your bike you're gonna be paying taxes
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This is extreme but thats the idea. Haha.

Or maybe just lessen the tax and not remove it completely by pricing the bike in half on papers

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joey12jet1 said:
Why do i get to pay the same payment? No difference on winter or summer payment. From statefarm.

Sent from my SM-G900W8 using Tapatalk
Click to expand...

Do you pay monthly or yearly for your bike insurance?

The reason it's less in winter because insurance companies know people don't ride in the winter and that's the reason why people keep the insurance throughout the year, you are basically paying for fire/theft during those months.


If insurance for bike here in Canada was same in winter and summer than most people will cancel insurance after each summer and restart after each winter.


There was a thread here that showed % distribution of your premium over each month of the year.
 
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joey12jet1 said:
Why do i get to pay the same payment? No difference on winter or summer payment. From statefarm.
Click to expand...

Even though the rates are different every month, SF will average out the payments over the year so you pay the same monthly premium.

When you cancel prematurely, you will be charged the difference between what you used and what you paid for.

Here's the chart on what you pay (from SF):

SF.jpg


There's a whole thread on why cancelling a State Farm policy to save on costs doesn't work out the way you think it does:

http://www.gtamotorcycle.com/vbforu...-Farm-policy-Want-to-know-your-Penalty-Refund
 
joey12jet1 said:
Why do i get to pay the same payment? No difference on winter or summer payment. From statefarm.

Sent from my SM-G900W8 using Tapatalk
Click to expand...

Your payment plan is one thing, it's a fixed monthly amount to make payments easier. The actual cost is a curve that peaks during the summer months. 90% of your insurance cost covers half the year. If you cancel early you will probably owe money. There is no savings in your plan, only extra cost.
 
joey12jet1 said:
Why do i get to pay the same payment? No difference on winter or summer payment. From statefarm.

Sent from my SM-G900W8 using Tapatalk
Click to expand...
It's pro rated. you pay like 15% a month in the riding months and like 2% a month in the winter. So if you cancel in october you get a bill for the extra premium from the summer that they split up into equal payments for you.
 
joey12jet1 said:
Why do i get to pay the same payment? No difference on winter or summer payment. From statefarm.
Click to expand...

Your insurance cost varies with the riding season. The more we can ride the more we pay for motocycle insurance. This means that May/June/July/Aug is more expensive, and the rest of the months are cheaper. Nov-Feb we pay almost nothing.

If, however, State Farm charged you the actual used premium for the month, almost every monthly premium would be different, which would surely confuse the insured. Instead they add up your total yearly premium and divide by 12, all for the sake of simplicity. If you cancel your insurance part way through the year, however, depending on when, you may owe them or have overpaid and will get a refund. This is why cancelling in the winter will get you almost no refund, as the premium for winter months is almost zero.
 
joey12jet1 said:
If i buy bike a month or two before riding season starts then sell a month or two before season ends, will i get in trouble getting insurance for the years to come?

This way i can get up and down engine displacement and be excited for different(not new bikes to avoid big depreciation) bikes every season.

Pros:
1. no more storage for winter.
2. Diff bikes every yr.
3. Pay 8 to 10 mo of insurance( maybe this will fall on cons if i pay more insurance when they notice i change bikes each yr.)
4. Bike shopping( who doest get excited getting a new(not brand new, used but new to me) bike

Cons:
1. Insurance(will every company drop me if they find out i change every yr? How does that work? THIS is the main concern of the thread.)
2. Pays a bit higher on bike if i buy during riding season(maybe less if i buy a month or 2 before season starts)
3. Sells a bit lower if i sell at the end of the season.

Will the pros outweigh the cons?

Thanks

Note:
Im a new rider and wants to experience range of diff bikes

Sent from my SM-G900W8 using Tapatalk
Click to expand...

Pros:

1. Depending on your living arrangements, this could be a significant benefit. On the other hand, this means you would need to stick to a tight schedule in terms of selling the old bike in the fall and potentially accept a lower than usual price for it.
2. That's always nice!
3. Generally, there is no benefit to cancelling motorcycle insurance for the winter. Unlike with cars, your premiums for a bike are not the same in December compared to July.

Cons:
1. As a rule, insurance companies like when you do not have lapses in coverage. This will not make them drop you, but the premiums might get higher as a result. If I were to proceed with this plan, I would not even let them know I sold the bike. Just give them the new VIN when you get a new bike. Also, you have to pay $10 at Service Ontario every time you change the VIN your plate is attached to, but this is pretty minor.
2. Depends on your deal hunting abilities ;) You can definitely
3. Depends on your selling abilities and the bike ;) I've seen people take a very strict position when selling in October, and they still manage to get asking price (this is easier when there is only 2 of the bike sold in the entire province).

As for taxes, you can reduce them, but you can't go too crazy. Every time I've bought a bike privately, the seller left the price blank on the bill of sale - for me to decide how much I can get away with. I would not put $1 in there - that's just stupid. While there is no Blue Book equivalent for motorcycles, I think a reasonable way to calculate a safe number to put is:

- take a price low enough that if you were to offer it to a seller, they would not just say no, but would get an urge to punch you in the face. Put a number just a bit higher than that on the bill of sale. :)
 
Like already said, premium payments are evened out, but are weighted to summer months. You could swap every couple of years or every year and not loose $ if you buy low(fall) and sell high(spring). The amount you pay in taxes and transfer fees could be made up in the selling price if you get a low enough price on purchase. I used to swap bikes every 3 years, but would have multiple bikes in the garage over the winter.
 
I got a bike in the spring and sold it late fall

When i went to cancel insurance.... I still had to pay because i used the majority of the premiums

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