Switching insurance companies mid-term

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bigdannyd

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Hey folks,

So here's the story:

I just received my M2 at the end of August (did a safety course) and picked up a Honda cbr250r. My intention was to ride this bike both for rest of this season and next season as well and move into my dream bike, a Honda cbr600rr the following season. Since it's my first season riding I didn't really know what to expect, I'm very pleased to say that I am having a blast riding and I'm very happy to have gotten into the sport/hobby/mode of transport. The truth is that this bike is lacking significantly in power and I prefer a more aggressive (leaned over) riding position that what the cbr250r offers. I honestly can't imagine myself staying on this bike next season without feeling like I'm seriously compromising. I know it's early, but I'm leaning toward picking up a cbr600rr for next season. FYI, I'm a mature rider and I understand the added power and thus responsibility that goes along with a supersport. My issue is that I'm with Rider's Plus Insurance for my cbr250r and they told me outright when I was shopping for quotes that they do not insure any bikes in the 600cc supersport class. As a result, I would have to cancel my policy with them and move onto another insurer when I pick up the 600.

My question is: what are the consequences of cancelling a policy mid-way. My plan is to sell the cbr250r, cancel the policy, then pick up the cbr600rr in April of 2018.

If it's not worth it premium-wise, I might just stay on the 250 for one my season.

thanks
 
The premium for seasonal vehicles like motorcycles and snowmobiles are priced based on the usable season. Motorcycle policies earn their premium during the spring, summer and fall during the riding season and snowmobile policies earn their premium during the winter months. Most companies follow the chart below for how they calculate your earned premium. For example if you were to start your policy April 1st and cancel at the end of October you would have earned 95% of your policy premium. If you paid your policy in full you would normally get a refund of 5%. If you are paying in monthly installments through out the year you would still owe a balance. You'll have to chat with your broker to see the specific numbers for your policy but hopefully this will give you a bit of a rough guide.
You can expect a significant increase in premium going from a 250 to a 600cc so make sure you get some quotes before you drop the cash on a 600cc super sport. Many insurance companies have filed decline rules on new riders with super sports so you'll have fewer options available to you than on the 250. If you want to keep your premium lower than the super sport, but still have more power than the 250 you might want to look at some standard motorcycles as well.
Enjoy the great weather before winter comes!
[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]
 
Thorough explanation above.

Coles Note version:

- You'll end up with a big bill in the mail equal to roughly 6 months worth of your insurance premiums on your current bike if you cancel a policy started in the spring now.

- You'll then have a massive bill trying to insure the RR that, if you insure it now, will start immediately.

Personally I would wait until the spring to buy the new bike, and just keep your current one and it's policy until then – doing it any other way will cost you six arms and three legs

Beware buying the RR now based on an insurance quote....as there's a good chance it'll not be the same come spring.

And on that topic, I'm hoping you have called around and realize how much a 600RR is going to cost you to insure, correct? That's assuming you can find an underwriter even willing to write it for a 1 year M2 rider.
 
PrivatePilot said:
Thorough explanation above.

Coles Note version:

- You'll end up with a big bill in the mail equal to roughly 6 months worth of your insurance premiums on your current bike if you cancel a policy started in the spring now.

- You'll then have a massive bill trying to insure the RR that, if you insure it now, will start immediately.

Personally I would wait until the spring to buy the new bike, and just keep your current one and it's policy until then – doing it any other way will cost you six arms and three legs

Beware buying the RR now based on an insurance quote....as there's a good chance it'll not be the same come spring.

And on that topic, I'm hoping you have called around and realize how much a 600RR is going to cost you to insure, correct? That's assuming you can find an underwriter even willing to write it for a 1 year M2 rider.
Click to expand...

Maybe you could read and understand the post directly above your post, written by an insurance professional, that contradicts pretty well everything your post says.
 
There are no short cuts. You can be the coolest customer, mature, and responsible etc.

Want your dream bike? Just gotta pay for it.

Call the insurance company and ask about cancelling your policy before it expires. Don’t have to give them specifics. Just say you are looking to cancel and what is the implications. Easy enough.

Now call around and ask for quotes on the 600 SS.

You are xx years old, driving for a long time, married, homeowner. Had M1 less than a year, M2 since XX date.

Ask what difference it is come April. Brokers get a little nervous because they can say what the rates will be in the future. Don’t want to be held responsible for telling you something today and come April, said insurance company won’t insure you or the premium is higher etc.

But it will get you an idea.

The 250 might not turn your crank now. And that’s cool. I had a Ninja 500 and it was a blast to ride.

You can probably pick up something a little bigger than the 250 and not jump straight to the 600. Even consider something in the middle weight naked class that has a little more power, looks nice and still gain some experience before jumping onto a 600.

There is a reason why it costs a substantial amount of premium for a new rider on any SS class of bike. Up to you to decide if you can afford it.

Or ride something a little easier on the pocketbook and enjoy riding and seat time.


Sent from my iPhone using Tapatalk
 
bitzz said:
Maybe you could read and understand the post directly above your post, written by an insurance professional, that contradicts pretty well everything your post says.
Click to expand...

Umm. No, it doesn't. It reinforces it actually.

The OP has used ~35% of his yearly premium (Aug through Oct) but will have paid for only around 25% of it, so there will be a bill in the mail. Yes, not 6 months as I noted (I misread August as April) but he will still owe at least 10% or so of his premium plus any fees if applicable. If it's a $2000/year policy, that's $200.

My recommendation to leave the policy in place is to not only avoid this and keep insurance continuity, but when he cancels in the SPRING he will get a refund of much of the winter premiums paid. This will help out with the stinging costs of the RR.
 
Hey OP

good luck on the RR, you have been advised well up above.....

I just want to know what your premium is and who is insuring you.....I have a feeling once you get this info

you will not be changing bike or insurance company as quickly as you think

but I have been known to be wrong from time to time....

.
 
Great advice all around, thank you.

Indeed Ontario is a precarious place to own supersport motorcycles (or motorcycles generally, depending on who you ask). It was suggested at least once on this thread that having less than one full year with an M2 is a red-flag insurance wise when it comes to the supersport class. Now, I'm aware of the costs of owning motorcycles and I'm budgeting accordingly, however if there would be a substantial premium drop-off between starting a policy on a 600cc before I hit the one-year mark with my M2 and after I'm passed the one year mark (90% less or something like that), then I probably can't justify jumping the gun before I hit 12 months with the M2 (no matter how well I do financially this winter).

Ultimately, the decision will come down to what sort of premium I can find and based off what you guys are hinting at I should expect an exorbitant number. I was hoping rather optimistically that it would come just below $4000 as that would be a reasonable price for me, but after reading the replies I'm expecting $6000+.

I'll update the thread shortly with a quote when I get a second to call at work. I was told State Farm is the way to go for SS policies.

On a side note, any specific bikes that you would recommend that aren't supersports? I'd prefer as aggressive or more aggressive than a cbr250r and more powerful.
 
Called State Farm. Quoted me $13,000 for the year for the cbr600rr for $1,000,000 liability and comprehensive.

Craziness. I don't know what's going on here, but this is just bizarre.
 
bigdannyd said:
Called State Farm. Quoted me $13,000 for the year for the cbr600rr for $1,000,000 liability and comprehensive.

Craziness. I don't know what's going on here, but this is just bizarre.
Click to expand...

Not surprising and not the highest we've seen here.

5 years riding and a full M with no tickets and a clean claim record will help. Being over 25/30 will help more combined with that.

Until then you're not going to find anything close to the numbers you posted for a RR.
 
Alright, thanks for the info folks. Unless I find myself living the US any time soon, there won't be supersports in my garage. Shame.
 
Sorry, but it's reality.

Stick with the 250 for another season and some more doors will open at more moderate costs in the <RR/SS category.

Just change your mindset on the 250 being limiting and have fun with it - lots here repeat the "it's more fun to ride a slow bike fast than a fast bike slow" mantra. Sometimes just changing ones outlook and running with what you have vs what you want makes all the difference.
 
PrivatePilot said:
Thorough explanation above.

Coles Note version:

- You'll end up with a big bill in the mail equal to roughly 6 months worth of your insurance premiums on your current bike if you cancel a policy started in the spring now.

- You'll then have a massive bill trying to insure the RR that, if you insure it now, will start immediately.

Personally I would wait until the spring to buy the new bike, and just keep your current one and it's policy until then – doing it any other way will cost you six arms and three legs

Beware buying the RR now based on an insurance quote....as there's a good chance it'll not be the same come spring.

And on that topic, I'm hoping you have called around and realize how much a 600RR is going to cost you to insure, correct? That's assuming you can find an underwriter even willing to write it for a 1 year M2 rider.
Click to expand...
*Cool Facts*

Contrary to popular belief, insuring a 600 SS for a first rider is not difficult.

The exact day I got my M1 was the exact day I got the R6 insured (after abit of research).

The only issue is cost really.
 
Genesis said:
not difficult.

The only issue is cost really.
Click to expand...

Dictionary.com:

http://www.dictionary.com/browse/difficult


difficult
[dif-i-kuhlt, -kuh lt]

1. not easily or readily done; requiring much labor, skill, or planning to be performed successfully; hard: a difficult job.
2. hard to understand or solve: a difficult problem.
3. hard to deal with or get on with: a difficult pupil.
4. hard to please or satisfy: a difficult employer.
5. hard to persuade or induce; stubborn: a difficult old man.
6. disadvantageous; trying; hampering: The operation was performed under the most difficult conditions.
7. fraught with hardship, especially financial hardship: We saw some difficult times during the depression years.
 
Genesis said:
*Cool Facts*

Contrary to popular belief, insuring a 600 SS for a first rider is not difficult.

The exact day I got my M1 was the exact day I got the R6 insured (after abit of research).

The only issue is cost really.
Click to expand...

Yes, lol. This is true. For some, myself included, it comes down to value for money, not so much whether or not one can "afford" something. If you're one of those who grew up with little but found yourself one day as a youngish adult and doing quite well due to some hard work and luck, it still proves difficult to part with $13,000 for the privilege to ride your bike for a year on public roads.

Just a thought. I don't know how much wealth and cash flow I'd need to have in order to pay that much for insurance.
 
bigdannyd said:
Called State Farm. Quoted me $13,000 for the year for the cbr600rr for $1,000,000 liability and comprehensive.

Craziness. I don't know what's going on here, but this is just bizarre.
Click to expand...

As I said, once the numbers come in, you just might be changing your mind.....

And no one ever said a first time rider wouldn’t be able to get insurance, wouldn’t even be difficult, but at what cost......is more the question....

Now let’s see, if I grew up with a silver spoon in my mouth, had some huge trust fund and wealthy family, or won the lottery, well I wouldn’t give the cost of insurance a second thought, heck I wouldn’t even give what bike I would buy a second thought....
 
State Farm isn’t the same after being purchased by Desjardins. Call around.

As for alternatives to a SS that has power and fun and looks cool?

Loving KTM 390.

Also F07.

BMW 310 series looks interesting.

Latest SV650.

I’d be looking at insurance quotes for these and then swinging a leg over some and even arranging a demo once I had my M2 in hand.




Sent from my iPhone using Tapatalk
 
It's usually the rider that's "lacking significantly in power" for the first two or three years.
 
bigdannyd said:
Alright, thanks for the info folks. Unless I find myself living the US any time soon, there won't be supersports in my garage. Shame.
Click to expand...
Check out an sv650. Pretty aggressive riding position, way more hp than your 250 and surprisingly cheap to insure. They are a perfect stepping stone to a full ss.

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