insurance payment periods

E

EC2010

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hello,

I'm shopping around for insurance again, and just want to get your opinion on payment periods: 7months vs. 12months

the way I understand this is there's the annual amount, and it's either divided by 7 or 12.
is there any advantage of one over the other?
What's your preference?

for now, I think I'd prefer 12 because it's a constant amount every month till renewal so easier to budget.
I just want to make sure I'm not missing anything. Thanks in advance.
 
It's theoretically possible with the 12 months, if they're prorated for riding months, that you may have to continue payments for a couple of months if you get rid of the bike at certain times of the year, but ask the individual company/agent.
 
Do the math, the yearly total may or may not be the same for 7 month payment vs 12 month (eg 250*7=1750 or 177*12=2000). I doubt the spread is that much, but it isn't always 0.

Understand that premium is used up based on the riding season (eg. approx 20%/month in the summer and 1%/month in the winter) so cancelling your policy partway through can cause refunds or large payments owing. On the 7 month plan, you stay on top of the premium you are using up, on the 12 month plan you can get way behind. None of this matters if you keep insurance for the year.

Good luck.
 
I pay 7 with TD, March to September. No real savings etc but its nice not paying it through the winter months.

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Iceman said:
I pay 7 with TD, March to September. No real savings etc but its nice not paying it through the winter months.

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Does anyone know if TD will do 12 months ? I'd rather not be giving them money in advance, we all know they have enough! (Not too lazy to call, but want to get others experiences before calling so I know what to expect ahead of time.)
 
rust0r said:
Does anyone know if TD will do 12 months ? I'd rather not be giving them money in advance, we all know they have enough! (Not too lazy to call, but want to get others experiences before calling so I know what to expect ahead of time.)
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I pay TDMM auto insurance every month. I have never had a bike insured with TD so I don't know if they treat them any differently.
 
rust0r said:
Does anyone know if TD will do 12 months ? I'd rather not be giving them money in advance, we all know they have enough! (Not too lazy to call, but want to get others experiences before calling so I know what to expect ahead of time.)
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Both my cars with TD 12 payments, the bikes are only 7 payments with no option for 12.

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Riceburner said:
That's weird of them to have different schedules. My co. does all on 12 month plan.
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I think it might be their way of discouraging the seasonal cancellations. Why cancel in October if you're completely paid up by September?
The 7 payments would be harder to swallow if you were paying $2000+/year, but I'm under $600/year so less then $100/month for 7 months is nothing.

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Doesn't matter if you cancel in Oct(for the most part)cause you have to pay the bulk of the premium for the summer months. When plate stickers weren't full year, I used to renew one bike for a year and not the others. Left the sticker renewal to spring for them, so paid only for the summer....renewal for me was in the fall. Still had ins. on all for the full year though as it cost the same in the end.
 
Iceman said:
I think it might be their way of discouraging the seasonal cancellations. Why cancel in October if you're completely paid up by September?
The 7 payments would be harder to swallow if you were paying $2000+/year, but I'm under $600/year so less then $100/month for 7 months is nothing.

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Exactly this. It's easier to put everyone on a 7MO payment schedule (which starts in the Spring) than having to explain to people on 12MO payment schedules that they own money to the insurer they start a policy in April and then try to cancel in October.
 
My bike and truck are with TD, truck is 12 bike is 7 I guess, thought it was 6. Anyway, there is no option, they want their money when they want it, I can't move the awkward arbitrary date, I can't pay them biweekly, and it seriously pisses me off. When my car was with Cumis, I had everything set up to neatly come out on payday every 2 weeks. Then the remainder of my pay aside from a small stipend for incidentals, would be transferred to savings. Now I have to use a calendar to remember scattered payments and make sure I transfer money back to main account for random bills to come out. I pay my home rent biweekly, and previously paid all other bills biweekly as well. Now home is biweekly, garage rent is monthly on the first, honda monthly on the 5th, truck insurance 9th, phone 19th, bike insurance 25th. It's a huge mess and I hate it.
 
VifferFun said:
Exactly this. It's easier to put everyone on a 7MO payment schedule (which starts in the Spring) than having to explain to people on 12MO payment schedules that they own money to the insurer they start a policy in April and then try to cancel in October.
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Exactly - people still don't fully understand how MC insurance is weighted here so far as payments, so it probably saves a lot of hassle for the ins companies doing it this way. I'm sure a lot of newbies (especially the $500/month newbie with a SS crowd) put their bike on the road in April and then think they're going to save all sorts of money by cancelling their policy in October only to get a big bill in the mail they don't comprehend.
 
PrivatePilot said:
Exactly - people still don't fully understand how MC insurance is weighted here so far as payments, so it probably saves a lot of hassle for the ins companies doing it this way. I'm sure a lot of newbies (especially the $500/month newbie with a SS crowd) put their bike on the road in April and then think they're going to save all sorts of money by cancelling their policy in October only to get a big bill in the mail they don't comprehend.
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this...and if you dont pay it you have a outstanding balance and a non pay marked on your record...have fun finding a company that will pick you up after that.

i didnt read the rest of the thread...but i generally pay 1 shot or 3 pay...it just depends on your personal finances.
keep in mind some companies have a financing fee, some dont and some have transaction fees.
for example i did 3 pay this year and had a $5 fee tacked on to each payment.
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