How does Statefarm's fire/theft insurance work?

V

veno78

Well-known member
My quote for the year is $3500, it started April 22. It is now July 9 and unfortunately I have to leave the city for a few months. Most likely returning at the beginning of October.

If I put it on fire/theft indefinitely.. do I still have to pay for the year's premium ($3500)? Or just the months I used up (April till July 9th)?

My SF agent says I have to pay the whole year's ($3500) premium even though I only used April, May, June and 9 days of July.
 
My agent told me that I can cancel at any time during the policy and they'll return my premium based on the number of months I used. Bear in mind that they allocate more of your premium to the summer months though. There should be a card in your policy that tells you how many percent of your premium is allocated to each month.
 
WeatherB said:
My agent told me that I can cancel at any time during the policy and they'll return my premium based on the number of months I used. Bear in mind that they allocate more of your premium to the summer months though. There should be a card in your policy that tells you how many percent of your premium is allocated to each month.
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That's what I keep telling the agent. I should be charged by how much premium I used up. But the agent says I have to pay the entire year's total premium if I have the bike on fire/theft. How does that make any sense?

I also called the agent's office today and the office manager says Statefarm doesn't allow fire/theft for bikes. wtf?
 
Without more info I can really only guess here but I think your problem is that the agent won't insure a stand alone comp only policy. They can't stop you from cancelling your policy and they are obligated to return unused premium as per a previously agreed upon schedule BUT they can refuse to provide you with comp only with no liability coverage. Insurance laws in Ontario regarding insurance companies obligation to provide coverage only pertain to mandatory coverages, not things like comp coverage. So I think what is being said is you can keep the whole policy or cancel it but not go on 'fire and theft' only.
 
Wasted said:
Without more info I can really only guess here but I think your problem is that the agent won't insure a stand alone comp only policy. They can't stop you from cancelling your policy and they are obligated to return unused premium as per a previously agreed upon schedule BUT they can refuse to provide you with comp only with no liability coverage. Insurance laws in Ontario regarding insurance companies obligation to provide coverage only pertain to mandatory coverages, not things like comp coverage. So I think what is being said is you can keep the whole policy or cancel it but not go on 'fire and theft' only.
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Thanks for the info. It's weird because they put it on comp only last season.

When you say "they can refuse to provide you with comp only"... do you mean the agent or Statefarm? Because if it's the agent couldn't I just go to another one?
 
veno78 said:
Thanks for the info. It's weird because they put it on comp only last season.

When you say "they can refuse to provide you with comp only"... do you mean the agent or Statefarm? Because if it's the agent couldn't I just go to another one?
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I don't work for statefarm so I can't tell you for sure. They will have standard underwriting guidelines but that type of decision might fall to an agents discretion. Do you have a home or auto policy with them? Sometimes they will let you move your bike to comp only if you have a full coverage car on the policy as well.
I mean, if I was an agent I wouldn't want to maintain your policy for the 5 percent commission on $15/ month lol.
 
Monnex recently changed their policy regarding reducing coverage, I am not sure if State Farm had a similar change that was not properly explained to you.

The old way
Put full coverage on summer car in May, turn off in october (premium paid ~$300)
Reduce to fire+theft october to May (premium paid ~$50)

The new way
Put full coverage on summer car in May, turn off in october (premium paid ~$300)
Reduce to fire+theft october to May (premium paid ~$300)
Next year when I turn on full coverage again I get a refund of ~$250

They told me people were reducing their coverage but continuing to drive (and then getting in accidents without liability insurance). When I call in next May to turn coverage on again, they know they haven't had to pay a claim from October to May.

The new system is stupid and annoying, but I understand their point.
 
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