Block
Well-known member
Anybody know what insurance company's allow you to pay by month, other than state farm?
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Insurance question
- Thread starter Block
- Start date
Signed on yesterday with TDMM theirs is called "pay as you ride" so although your covered 12 months they break it into 7 monthly payments, (Mar - Sept). They charge NO interest just $7.00, ($1 per monthly withdrawal). This is a new policy with TDMM so not sure about the above where someone said upon renewal after your first or second year.
Roomie
Banned
False. As said alrwady TD does monthly payments from day one however they only do them from March to Sept instead of all year.
MM stands for Meloche Monnex
I am part of a group plan with Economical Insurance. They have just made some changes to their policies in which they now combine my cars, bike into the same policy and offer monthly payments. However they will not insure sport bikes.
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Sent from my iPhone using Tapatalk
MikeLeinwand
Member
As somebody above mentioned, Intact Insurance does monthly payments but charges a 3% monthly service fee. The 3% monthly service fee is charged by most, if not all companies that offer MPP (monthly payment plans). If you are with a company that doesn't tell you they charge 3% then maybe they don't, however I'd say look at the policy paperwork to see if it is in there somewhere.
Just to add a little side note...
Insurance companies that break the payments up over twelve months, take into consideration that the bike will only be on the road for a few months every year and the premium is based on that. It is cheaper to insure for the full twelve months rather than to insure during the riding season, cancel your policy and than get insurance again the next season.
The reason is, when you cancel they will charge you a fee for cancelling midterm and when you go to get your policy again the next season, they will rate you as a brand new driver again rather than having one year experience (the more continuous experience you have, the better chance you have at finding cheaper rates).
Just to add a little side note...
Insurance companies that break the payments up over twelve months, take into consideration that the bike will only be on the road for a few months every year and the premium is based on that. It is cheaper to insure for the full twelve months rather than to insure during the riding season, cancel your policy and than get insurance again the next season.
The reason is, when you cancel they will charge you a fee for cancelling midterm and when you go to get your policy again the next season, they will rate you as a brand new driver again rather than having one year experience (the more continuous experience you have, the better chance you have at finding cheaper rates).
In the interest of perpetuating good information, you, as an insurance broker, should know that rating based on continuous insurance is not legal. (FSCO source: https://www.fsco.gov.on.ca/en/auto/autobulletins/archives/Pages/a-06_97.aspx)
Nothing happens with TD after Sept your coverage is for 12 months you only make 7 monthly payments. You pay Mar - Sept, (which means your monthly payment is higher than it would be if you were with a company that spread the payments over 12 months), but your still covered
MikeLeinwand
Member
Yes, I do know that and insurance companies do not rate you for having gaps in insurance. They do however give you discounts for having continuous insurance. They are called renewal discounts and an insurance company can offer you renewal discounts even if your experience up until that point was with another insurance company.
This means that if you cancel your motorcycle policy in October and go to get insurance again in March, you will not get any renewal discount and your rates would be higher than if you were switching to the new insurance company at renewal.
What I meant was, they will rate you without any renewal or loyalty discounts. When I said you would be rated as a new driver, I meant you would not receive any of the discounts just like a new driver wouldn't
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^^. This is slimey. You said continuous coverage increases your chance if finding a better rate. Now you clarify that they are discounts.
Seems like that was just an out to get around a FSCO ruling, don't change the policy - just the wording around it.
Nothing personal - I'm talking about a general practice.
Seems like that was just an out to get around a FSCO ruling, don't change the policy - just the wording around it.
Nothing personal - I'm talking about a general practice.
MikeLeinwand
Member
You are absolutely right. Remember, I'm a broker, not insurance company. I fight with insurance companies often to get these discounts added on for people who have had a gap.
Insurance companies can't SURCHARGE for gaps in coverage, but they can DISCOUNT for renewal and loyalty. So continuous coverage does help you get better rates even though they cannot charge additional premium for lack of insurance.
No matter how they word it, insurance is too expensive in the GTA for most riders.
redridernl
Well-known member
Slimey for sure but I wouldn't expect any better. When you call them on it they spin it and act like it's a completely different scenario.
It's funny how blatant of a loophole that is. It clearly goes against the intent of the law, but apparently adheres to the letter.
Kudos to you for keeping it professional, you must get flak all the time; people are (understandably) not happy in the least with Ontario's insurance system. I like to think we here understand that it's not your fault.
The worst part about the issue with insurance in Ontario is it's likely *lack* of action that's causing high rates, rather than actions taken to screw the consumer (execs taking high profit). No one wants to take responsibility for tackling the massive fraud issue.
Not to mention the *absolutely broken* medical system we've got that forces us to pay for the system with taxes, then pay again for private insurance with our auto policies.
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