Getting back into riding, need high risk insurance

[PrivatePilot]

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"Registered", "Plated", "Fit or unfit", and "Valid Valtag" are four different things. The first three things last forever as long as you don't change them. The only thing that expires is the valtag, and the Service Ontario people couldn't care less if it's been 30 years since the valtag was renewed - as long as you can provide proof of insurance, they'll just sell ya a new one, even though, yes, they can clearly see the last time the tag was renewed. They don't care.

 

[GreyGhost]

Deleted - Pps answer was better.

 

[CHRIS63]

As ghost touched on, motorcycle insurance is weighted towards riding months even when you may only ride 6 of 12 months of the year. Doing what you're suggesting has two possible outcomes:

1/ You were paying monthly pretty much twice what you would have been paying for a 12 month policy anyways since you're paying for the off months as part of the riding months.
2/ If not...when you cancel you're going to get a big fat bill in the mail from the insurance company for the other 6 months, cancelled policy, or not.

Not necessarily.

I did this the past two seasons.

I insured the bike for about 5 months. Paid the cancellation fee both seasons. It was about $2600 in total per season. Sure it's a lot of money theres no denying that, but I would have been paying like 1500 a year for a ninja 300 which made the decision to fork over the extra grand worth it to me. A lot of companies want you to pay the full premium up front which is retarded. When cancelling they cannot force you to pay the remaining months of the year since there is no contract obligating you to do so.

 

[GreyGhost]

Not necessarily.

I did this the past two seasons.

I insured the bike for about 5 months. Paid the cancellation fee both seasons. It was about $2600 in total per season. Sure it's a lot of money theres no denying that, but I would have been paying like 1500 a year for a ninja 300 which made the decision to fork over the extra grand worth it to me. A lot of companies want you to pay the full premium up front which is retarded. When cancelling they cannot force you to pay the remaining months of the year since there is no contract obligating you to do so.

You dont understand insurance. They dont force you to pay for the months you dont use. They price the winter months at something like $15 a month while the summer months are priced at more like $500 a month. Seems like a no brainer to me. Keeps fire and theft active and allows you to go for a rip when the weather is nice. If you told them you were making 12 equal installments on a 3000 yearly policy that you started at the beginning of the summer, you would have paid 1250 over five months but used up $2500 worth of coverage. If you try to cancel, you are on the hook for the additional 1250 that you have used but not yet paid for.

 

[CHRIS63]

You dont understand insurance. They dont force you to pay for the months you dont use. They price the winter months at something like $15 a month while the summer months are priced at more like $500 a month. Seems like a no brainer to me. Keeps fire and theft active and allows you to go for a rip when the weather is nice. If you told them you were making 12 equal installments on a 3000 yearly policy that you started at the beginning of the summer, you would have paid 1250 over five months but used up $2500 worth of coverage. If you try to cancel, you are on the hook for the additional 1250 that you have used but not yet paid for.

 

[GreyGhost]

What are you talking about? I am 24 years old paying 150/month for my Mercedes. I know exactly how insurance works. I am not paying 500 a month throughout the year, I just pay a little less during the summer months and cancel when September comes. No penalties, just pay the cancellation fee.

Car and bikes have a substantially different monthly premium distribution. This is a bike forum, you never mentioned you were talking about a car policy.

 

[BigEvilDoer]

I know exactly how insurance works. *SNIP*

Insurance used to be seasonal before my time, 6 month periods. Now that 3000 insurance annual premium is 250 a month instead of 500 if it were a semi annual premium. Yes you can obviously insure it for fire and theft during any period of the year but that doesnt allow you to go for a RIP whenever you want.

I don't think you understand how insurance works bud.

Wow. You truly have no clue how motorcycle insurance works.
It's bell curved. We'll make it easy math. 12 months a year, $100/month payment.

You will use about 1% of your premium for each of the months of December, January and February (3% total used - valued at about $36). In the months of November and March, you will use 2% of premium per month (4% total used, so $48). 5 months of coverage, paid $500, yet you've only actually used $84 of your annual premium. In the summer months lets say June, July, August, you will use 20% of your annual premium per month (60% of premium total, or about $720).

*NOTE* The above usage percentages are for example only, and not exact percentages. These will vary from company to company.

Understand now?
If you think you can ride for June, July, August and cancel your policy, thinking you've paid your $300 and it's all good, the insurance company will send you a little notice saying that you owe them $420 PLUS cancellation fee ($720 premium usage, - $300 what you've paid + cancellation fee)

And good luck getting a fire/theft only policy for a bike, unless it's a stupid valued show bike / crazy antique for display only which never gets ridden.

 

[rakkaus]

Wow. You truly have no clue how motorcycle insurance works.
It's bell curved. We'll make it easy math. 12 months a year, $100/month payment.

You will use about 1% of your premium for each of the months of December, January and February (3% total used - valued at about $36). In the months of November and March, you will use 2% of premium per month (4% total used, so $48). 5 months of coverage, paid $500, yet you've only actually used $84 of your annual premium. In the summer months lets say June, July, August, you will use 20% of your annual premium per month (60% of premium total, or about $720).

*NOTE* The above usage percentages are for example only, and not exact percentages. These will vary from company to company.

Understand now?
If you think you can ride for June, July, August and cancel your policy, thinking you've paid your $300 and it's all good, the insurance company will send you a little notice saying that you owe them $420 PLUS cancellation fee ($720 premium usage, - $300 what you've paid + cancellation fee)

And good luck getting a fire/theft only policy for a bike, unless it's a stupid valued show bike / crazy antique for display only which never gets ridden.

View attachment 41757

I don't think he's wrong but i don't think he's right either , he did say past 2 seasons.
When i was with state farm and a few others, they explained how the premium was used, pretty much what you said.

Anyway here's why i think he's not wrong, i had car insurance with rbc/aviva and I paid 153.77(1845 premium), policy was renewed on jan 24, 2019. In Mar 9, 2018, I switched my bike from another company to rbc and it was quoted as 543 since I had 9 months left til renewal on my car. 543 got divided into 9 equal payment and that got add to my payment plan and that was 213.xx. In 2019, the renewal came and both vehicles went up, the combined total came to 233.xx per month (car premium was 2050ish and 740ish). I was looking to switch my bike insurance since it went up quite a bit. On april 22, 2019, I switched to echelon and my payment went from 233.xx to 171.xx and i was hoping they would refund the money they charged from feb-apr during winter months but that never happened. I called them, pretty much the response was that I was wrong and they will not refund me. My 2020 renewal went up AGAIN to 192.xx(2300 premium), I didn't bother renewing with them and switched to another company, Botton line is now I'm paying 110.xx(1321 premium for car insurance and 408 premium for my bike). I'm thinking it's the administration that made the mistake.

 

[Jayell]

What are you talking about?

I know exactly how insurance works.

Haha! No you don't.

FYI, this is how Mitchell & Whale, for example, apply the insurance premium for motorcycles over 12 months:

January 0%
February 0%
March 5%
April 10%
May 10%
June 20%
July 20%
August 20%
September 10%
October 5%
November 0%
December 0%

 

[Trials]

I think I could be happy with a 40% discount for not riding street in June and July

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