Insurance renewal date

[Ghostrider619]

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Hello,
Is it possible to start your policy from today March 2018 & have your renewal date to be lets say 3-4 months later July 2019 ?
or renewal date has to be 12 months after your policy starts. Thanks.

 

[Mitchinsurance]

@Ghostrider. Motorcycle policies are set for a 12 month term and priced based on the riding season. You can always cancel your policy mid-term and you will only owe for the earned premium for the amount of time the policy was in force.
If you are looking to start a policy today and then cancel your policy in July 2019 you would have 1 policy start now, and renew 12 months later and then you could cancel your renewal mid-term in July 2019.
For calculating the cost of your earned premium when cancelling mid term, most insurance companies use the table bellow.
For example if you were to start the policy March 1st and cancel your policy after 4 months and the end of June you would have earned 45% of your premium. If your annual policy was $2000 you would owe the insurance company a total of $900 for your time on risk.
Hope that helps answer your question. Always good to ask your broker or insurance company about your specific situation before making a change to your insurance to avoid surprises. [TABLE="class: aqua_table, width: 870"]
[TR]
[TH="class: coverage, align: center"]Month[/TH]
[TH="class: coverage_amt, align: center"]Earned Premium[/TH]
[/TR]
[TR]
[TD="class: pseudoth"]January[/TD]
[TD]Nil[/TD]
[/TR]
[TR]
[TD="class: pseudoth, bgcolor: #F7F7F7"]February[/TD]
[TD="bgcolor: #F7F7F7"]Nil[/TD]
[/TR]
[TR]
[TD="class: pseudoth"]March[/TD]
[TD]5%[/TD]
[/TR]
[TR]
[TD="class: pseudoth, bgcolor: #F7F7F7"]April[/TD]
[TD="bgcolor: #F7F7F7"]10%[/TD]
[/TR]
[TR]
[TD="class: pseudoth"]May[/TD]
[TD]10%[/TD]
[/TR]
[TR]
[TD="class: pseudoth, bgcolor: #F7F7F7"]June[/TD]
[TD="bgcolor: #F7F7F7"]20%[/TD]
[/TR]
[TR]
[TD="class: pseudoth"]July[/TD]
[TD]20%[/TD]
[/TR]
[TR]
[TD="class: pseudoth, bgcolor: #F7F7F7"]August[/TD]
[TD="bgcolor: #F7F7F7"]20%[/TD]
[/TR]
[TR]
[TD="class: pseudoth"]September[/TD]
[TD]10%[/TD]
[/TR]
[TR]
[TD="class: pseudoth, bgcolor: #F7F7F7"]October[/TD]
[TD="bgcolor: #F7F7F7"]5%[/TD]
[/TR]
[TR]
[TD="class: pseudoth"]November[/TD]
[TD]Nil[/TD]
[/TR]
[TR]
[TD="class: pseudoth, bgcolor: #F7F7F7"]December[/TD]
[TD="bgcolor: #F7F7F7"]Nil[/TD]
[/TR]
[/TABLE]

 

[Ghostrider619]

Thank you for the very detailed response.

So basically renewal date will always be 12 months from the day your policy starts.

My policy started on May 2017 & the renewal date is May 2018 but I wanted it to be on August 2018 so its a bit convenient ( Its my month of birth so its easier to remember all the things that needs renewal every year )

& no way of doing that without cancelling my new 2018 policy on August and starting a new policy AGAIN on August 2018 so that the 2019 policy renewal will be August.

 

[Evoex]

Thank you for the very detailed response.

So basically renewal date will always be 12 months from the day your policy starts.

My policy started on May 2017 & the renewal date is May 2018 but I wanted it to be on August 2018 so its a bit convenient ( Its my month of birth so its easier to remember all the things that needs renewal every year )

& no way of doing that without cancelling my new 2018 policy on August and starting a new policy AGAIN on August 2018 so that the 2019 policy renewal will be August.

Your insurance company should mail you a copy of your renewal date and the quoted rates for the next year a few months before its due to reset.

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