Paid insurance, now underwriters want more.

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why dont you cancel your policy and then whatever they charge you for that give the broker the option of paying it or taking them to small claims court. Thats why it is there so you can represent yourself for small amounts. Nothing ventured nothing gained??
 
Araqiels said:
So this is the story,

I went with a new broker to insure my bike. Quote came out 840ish/year. I paid in full via credit card, signed the papers, got my temporary slips, and my full slips will arrive in the mail after the strike. This happened three days ago.

When I was getting my insurance, I disclosed to the broker that I was in an accident where I damaged the rear bumper of a car ever so slightly. The lady was insistant we take it through claims, and that is what we did. All this was revealed to my broker prior to signing the papers.

So today I get a call from him, along with an email that states:

Hello Robin,

We have received the new business motorcycle application for Mr. (my name) and it has been issued under policy number (policy number). His policy has been re-rated as the insured had an At Fault motorcycle claim with us Aug. 5, 2010 which brings his driving record down to a 0.

Mr. (my name) premium is now $1658. It has been issued on Full Pay with $843 applied via credit card as per the attached authorization form.

Attached is an underwriting memo and a copy of Mr. (my name) Autoplus for reference.

Sincerely,

xxxxxx




He states that he has misunderstood what I said about the accident. He thought I had said a car hit me. He acknowledges that it was HIS misunderstanding, because he recalls me telling him about the bumper, and clearly, my bike doesn't have a bumper. So, Jevco, the company I was with when I had the accident, now - through some various logic - wants the difference of premium of $815.

I'm still waiting on my broker to explain the details behind this. But in the meantime, I thought I'd consult you all. What obligation do I have to pay Jevco these premiums? After all, I signed a legally binding agreement with the new company to pay insurance at $843/year after I disclosed my previous accident to them.

Can Jevco all of a sudden emerge with a demand for another $815 even though I'm not with them? Do I have the option to opt out, and cancel with my current company since I didn't quite agree to this?

This accident happened in August 2010, so if I wait till August 2011, it will have been cleared from my record and I'll pay $843/yo. I mean, it's not worth riding one month for an additional $815.

Please advise.

Thanks.
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You are entitled to a pro rata (without penalty) cancellation based on the quoted premium. I would recommend that you exercise this option and then start a new policy in August once your accident is one year old.

It is always best to deal with a broker that specializes in bike insurance, is well versed in their respective insurer's rules and rates and has the technology to run your auto insurance history and MVR prior to your contract inception. This will save you time, frustration and money.
 
Insurance Guy said:
You are entitled to a pro rata (without penalty) cancellation based on the quoted premium. I would recommend that you exercise this option and then start a new policy in August once your accident is one year old.
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I thought pro-rata wasn't an option with Jevco. Is this allowed in specific situations? If so, what would those situations be?
 
Araqiels said:
I do stand corrected. One of the articles state that my policy can be amended at anytime, and if I should choose to cancel it, a portion of my premium will not be refunded. It was well concealed.
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******. sorry to hear that.

Insurance bad guys win again.
 
Conclusion: Given that the OAP1 permits the insurer to alter the premium on the insured, it is my responsibility to pay the remainder of the premium, or to cancel the account, and pay the penalty for the time ridden.

I've worked out with my broker, and Jevco, that I will cancel my policy as of July 20th, and pay $224 (to Ride between June 24th-July 20th). I won't ride between July 20th, and August 5th. By August 5th my incident will have been dropped from my record, and I can reinstate insurance at the original rate of $843/year. Was a bit of a hassle, had to be a little cruel, and hardnosed with my broker, but in the end it will save me some $600 at the loss of about fifteen riding days.
 
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