is it better to cancel insurance or keep only fire and theft? | GTAMotorcycle.com

is it better to cancel insurance or keep only fire and theft?

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rashidme

Well-known member
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i just talked to my insurance agent (statefarm) and asked them what would happen if:
1 - i only put fire and theft
2 - if i cancel my insurance would there be any charges?

my agent says:
1 - [FONT=&quot]You can definitely put fire and theft only on your bike. Just remember that when you reinstate the coverages when the weather gets better you will have a pro-rated amount due based on the amount of premium calculated verses how much you paid.
2 -[/FONT][FONT=&quot]Yes, your prorated amount due would be due within 30 days.[/FONT] [FONT=&quot]It’s better to have fire and theft on it and then wait for the bigger bill upon reinstatement.[/FONT]


should i cancel it?? i am kinda worried about the bigger bill they are talking about? I will be storing bike at a storage place.
 
Depending on when you started getting insurance; when you cancel you'll either owe or be owed money by statefarm.

http://www.gtamotorcycle.com/vbforu...-Farm-policy-Want-to-know-your-Penalty-Refund

Read and understand that link. Each month you use up so much % premium depending on what month it is (summer months = more), but each month you pay the same amount towards your premium. So if you've paid more premium than you've used up, you'll be owed money if you cancel. If you used up more than you've paid, you'll owe money.
Switching to just fire and theft should do the same thing.

I'm willing to bet you'd owe statefarm money btw. They do it like this to stop people from getting full insurance for the good riding months ,and then dropping or switching to fire and theft once bad weather rolls around.
 
Putting on Fire and Theft is more hassle free if your keeping your bike or switching to different bike. It only costs you <$100/year.
 
well i am keeping my bike. And i started insurance in April of this year.
 
at the end of the day it doesnt make a difference if you intend to keep your bike. it's all pro rated so if you wanna pay less now, you are gonna pay more at the reinstatement when the next season starts.
 
I leave my bike fully insured year round. Normally riding from beginning March to November sometimes December full time. In that time, I would take my car off the road, remove all insurance from it, and there was never any issue with that, only insuring 3 to 4 months of the year. Now I just leave everything insured year round, don't bother going back and forth anymore.
 
rashidme said:
well then explain it mr genius!!!
Click to expand...

There is an entire insurance forum where anyone can read all that stuff.

Does your mom chew your food for you too?
 
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rashidme said:
well then explain it mr genius!!!
Click to expand...
What he means, is say if your policy with state farm is $1120 per year for full coverage:

January is $4/mo, Feb is $6/mo, March is $65/mo, April is $100/mo, May is $175/mo, June is $210/mo, July is $210/mo, August is $175/mo, September is $100/mo, October is $65/mo, November is $6/mo, December is $4/mo.

So what they do is just take the $1120 per year and divide it by 12, so you'd pay $93.33/mo, every month.

If you signed up with state farm in November and cancelled your policy in Feb they'd owe you a REFUND of $353.32 because you've paid them $373.32 but the actual insurance cost was only $20.

Same goes if you sign up in April and cancelled in September you'd owe them $410.02 because you've only paid them $559.98 for the equivalent in $970 in insurance.

These prices are based on State Farm's "A"/preferred rate for a 600cc motorcycle.

I hope that makes sense for you.

-Jamie M.
 
toysareforboys said:
What he means, is say if your policy with state farm is $1120 per year for full coverage:

January is $4/mo, Feb is $6/mo, March is $65/mo, April is $100/mo, May is $175/mo, June is $210/mo, July is $210/mo, August is $175/mo, September is $100/mo, October is $65/mo, November is $6/mo, December is $4/mo.

So what they do is just take the $1120 per year and divide it by 12, so you'd pay $93.33/mo, every month.

If you signed up with state farm in November and cancelled your policy in Feb they'd owe you a REFUND of $353.32 because you've paid them $373.32 but the actual insurance cost was only $20.

Same goes if you sign up in April and cancelled in September you'd owe them $410.02 because you've only paid them $559.98 for the equivalent in $970 in insurance.

These prices are based on State Farm's "A"/preferred rate for a 600cc motorcycle.

I hope that makes sense for you.

-Jamie M.
Click to expand...


Jamie always the man! thanks :)
 
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