Late season discount

The_big_dill

The_big_dill

Member
Hey all,

I Just brought the papers RTI gave me to the drivertest center yesterday to claim my M2 :D

Also heard that end of season is cheapest prices for used bikes.

I remember one of the people at RTI telling me that i can get something along the lines of "end of season" insurance premium, for a relatively low price.

What can you guys tell me about this?

Cheers,

Phil.
 
If you believe that, I've got a bridge, swamp land and some magic beans to sell you.
 
Well they are kind of right, as most insurance companies have a higher premium % during the summer (12-18%) and less during the winter (2-8%).
Look at the insurance section in the SF sticky and it will show you what percentage they use each month.
 
Got a quote from TD Meloche a couple of weeks ago. $50 for October to March for full coverage since to them, the riding season is over. $50 is basically their minimum premium just to cover some of the operating costs of sending you documents.
 
Insurance should be the same during every month regardless which month it is. You purchase insurance yearly and the insurance is spread out evenly during the 12 month of that year. Should never be less because it is the "off season" Pay $50 now, and regret later as the insurance will ask you to pay the premium to recover the cost.
 
Carriers said:
Insurance should be the same during every month regardless which month it is. You purchase insurance yearly and the insurance is spread out evenly during the 12 month of that year. Should never be less because it is the "off season" Pay $50 now, and regret later as the insurance will ask you to pay the premium to recover the cost.
Click to expand...
Nope.
TD and Statefarm do things a little differently...
For motorcycles, that is.
 
Carriers said:
Insurance should be the same during every month regardless which month it is. You purchase insurance yearly and the insurance is spread out evenly during the 12 month of that year...
Click to expand...

If you used your bike evenly throughout the year, as is the case for a car, then I would agree but we do not ride in winter and therefore the risk of a crash and injury due to riding is far less. Therefore insurance premiums should match the risk and also be far less.

You get no discount at the end of the season. You get less use of your bike, which means less vehicle crash risk and therefore less requirement for insurance. Weep not for the insurance companies, for they will quickly match the increased bike usage with their premiums in the spring.
 
Carriers said:
Pay $50 now, and regret later as the insurance will ask you to pay the premium to recover the cost.
Click to expand...

TD is a bit different than all the other carriers. Their policies always renew in February/March and they don't do 12 monthly payments. It's either pay your annual premium in full or have it split into 6 or 7 equal instalments that run from ~February/March to September/October to coincide with the riding season.

So, you may have a policy that runs from March to March but by October you would have already paid your entire year's premium based on TD's earnings schedule. A policy starting in October is outside of their premium earnings schedule that's why it's only $50. The policy will renew in March and every March from there on. Basically, they want you to pay when you ride which is why they do things their way.

Compare the above with a company like State Farm for instance where to my knowledge a policy will always renew 12 months from its inception and instalments are 12 equal monthly payments.
 
To clarify:



TD's Monthly premium usage:


  • JAN: 0.0%
  • FEB: 0.0%
  • MAR: 5.0%
  • APR: 10.0%
  • MAY: 10.0%
  • JUN: 20.0%
  • JUL: 20.0%
  • AUG: 20.0%
  • SEP: 10.0%
  • OCT: 5.0%
  • NOV: 0.0%
  • DEC: 0.0%



SF's Monthly Premium Usage:


  • JAN: 2.0%
  • FEB: 2.0%
  • MAR: 4.0%
  • APR: 8.0%
  • MAY: 12.0%
  • JUN: 16.0%
  • JUL: 16.0%
  • AUG: 16.0%
  • SEP: 12.0%
  • OCT: 8.0%
  • NOV: 2.0%
  • DEC: 2.0%


/thread
 
Last edited:
My Statefarm rate/mth is the same across the entire year. The distribution is likely as shown but that doesn't mean the rates vary per mth. The distribution shows how much of your total rate for the year is used up, thus if you cancel the amt you owe will vary depending on when your anniversary is and in what month you are cancelling the insurance.
 
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