Motorcycle Insurance Articles
What Happens To An In Full Motorcycle Insurance Payment When A Policy Is Cancelled
2010-04-01
In order to get the best possible motorcycle insurance premium, you'll sometimes need to cancel a policy--and occasionally, you'll need to cancel more than one policy. Using insurance providers' rates as a negotiation tool is an important part of the insurance process, but it is also important to know how your motorcycle insurance coverage is affected when you switch from one insurer to another. You need to know when your new coverage starts, when the old coverage ends, and, if you pay for your motorcycle insurance policy in full, you'll need to know what happens to the remainder of your in-full payment when you cancel a policy early.
There's good news here; you're legally entitled to a refund from your in-full payment, although fees can be subtracted by your motorcycle insurance company (and any fees that they can assess must be listed in your contract). Insurance providers typically send out checks for the unused portion of your payment, and in general, these will take about two to three weeks to arrive from the day that you cancel your policy. As these checks can often be significant, you should call your old insurance company as soon as possible when you've definitely decided to switch. Ask them when you can expect a refund check, and feel free to call back to check up--they may try to offer you a lower motorcycle insurance quote in order to avoid cancelling your policy, but stick to your guns (unless, of course, they offer you a really attractive policy).
If you feel that your insurance provider is stalling to avoid issuing a refund check for your motorcycle insurance premium, you can make a complaint to your state's insurance commission. Call them or visit their website to find out what rights you have; usually, you'll have to wait several weeks for a refund, and if none is issued, you can file a formal complaint which the insurance commission will investigate. In most cases, you simply need to be patient.
Before you switch your insurance provider, be sure to collect as many quotes as possible. Ideally, you want to avoid switching your bike's insurance policy around, especially if you're paying in full. It's a fairly simple matter to ask for a refund check, but you'll have to wait several weeks each time, and this can make insurance a hassle. Use online quote generators, and compare all aspects of your motorcycle insurance policy, not just the premiums that you'll need to pay. If you take your time when making an insurance decision, you'll pay much less in the long run, and you won't have to cancel your policy for quite a while.