Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Just as personal note to this subject, I cancelled my state farm policy at the end of last August, after getting it set up in March. I was aware of their premium schedule, so fully expected to owe them a couple hundred dollars. Bill never came, and I even called to follow up and they said I didnt owe anything. Might have been a glitch, or mabye they just talk a big game and never actually charge anyone.
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
Fusilli Jerry
Just as personal note to this subject, I cancelled my state farm policy at the end of last August, after getting it set up in March. I was aware of their premium schedule, so fully expected to owe them a couple hundred dollars. Bill never came, and I even called to follow up and they said I didnt owe anything. Might have been a glitch, or mabye they just talk a big game and never actually charge anyone.
You pay first and last up front, so it is possible that your prepaid month of insurance exceeded the balance owing on your account. Did you use my Excel calculator (which accounts for this)? If it shows you should owe money, then just consider yourself lucky :D
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
I always thought that you could put your motorcycle on "park insurance" with state farm during the winter months and only pay a few dollars a month ($9)... Im about to go with them since my JEVCO renewal came and its about 700 more than what I should be paying with State Farm...
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
albguy40
I always thought that you could put your motorcycle on "park insurance" with state farm during the winter months and only pay a few dollars a month ($9)... Im about to go with them since my JEVCO renewal came and its about 700 more than what I should be paying with State Farm...
No, you can't "park" your insurance with State Farm. The summer months are where the bulk of the premium is going, while the winter months when your bike is parked are 'cheap'. However, in the interest of not confusing their customers, they divide your monthly payments equally over the year. If you insured your bike in May at the start of the season and then decided to stop your policy at the end of summer, you will have only paid them a fraction of what you actually owed for those months.
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
iridebikes
No, you can't "park" your insurance with State Farm. The summer months are where the bulk of the premium is going, while the winter months when your bike is parked are 'cheap'. However, in the interest of not confusing their customers, they divide your monthly payments equally over the year. If you insured your bike in May at the start of the season and then decided to stop your policy at the end of summer, you will have only paid them a fraction of what you actually owed for those months.
Are you sure about that??? You should look around for another State Farm Agent than, because I am going to be paying $164 for my Katana monthly until the winter months at which time I will only have fire/theft for $9 per month for as long as i choose to.... Ill be paying just under the $1000 for the whole year (Just got my JEVCO renewal at $1650) and STILL have continuos insurance coverage for the entire year...
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
albguy40
Are you sure about that??? You should look around for another State Farm Agent than, because I am going to be paying $164 for my Katana monthly until the winter months at which time I will only have fire/theft for $9 per month for as long as i choose to.... Ill be paying just under the $1000 for the whole year (Just got my JEVCO renewal at $1650) and STILL have continuos insurance coverage for the entire year...
you will owe them a bunch of money for like 3 or 4 months when you go to fire and theft...you will only save like 50 or 100 bucks total if you do this.
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
kellen
you will owe them a bunch of money for like 3 or 4 months when you go to fire and theft...you will only save like 50 or 100 bucks total if you do this.
This is absolutely correct, and the reason why I created this post in the first place.
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
albguy40
Are you sure about that??? You should look around for another State Farm Agent than, because I am going to be paying $164 for my Katana monthly until the winter months at which time I will only have fire/theft for $9 per month for as long as i choose to.... Ill be paying just under the $1000 for the whole year (Just got my JEVCO renewal at $1650) and STILL have continuos insurance coverage for the entire year...
No matter which way you arrange your payments, you're gonna be paying them your full (in this case just under $1000) premium for the year.
Whether you pay $164 per month for 6 months and then $5 per month for the rest of the year makes no difference. You're still at $1000.
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
I have a quick question, i've searched and haven't found the answer.
Say your bike is being repaired and it is going to be unridable for 3 weeks of July. Can you freeze insurance and expect a refund since the majority of your insurance premium is in this month?
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
timyates519
I have a quick question, i've searched and haven't found the answer.
Say your bike is being repaired and it is going to be unridable for 3 weeks of July. Can you freeze insurance and expect a refund since the majority of your insurance premium is in this month?
I don't see why not, but you should ask an agent to be sure.
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
VifferFun
I'm not sure exactly what you are asking?
As far as I am aware, all companies earn motorcycle premiums according to a schedule similar to State Farm's. The schedule will vary from one insurer to the next, but it should be pretty close.
I have posted this thread specifically for State Farm, because they are one of the only insurance companies that allow people to pay motorcycle premiums monthly, rather than in a single lump sum at the beginning of the policy term. Other companies charge a lump sum just to avoid confusing the policyholders who think they can cancel their policy in November and not have to pay for the Spring/Summer premium they have used, but not yet paid for. If you have paid your premium in a single lump sum, then you will be entitled to a refund when you cancel the policy, since you have already paid for an entire year of coverage, but you are not using the policy for the full year. Bear in mind, however, that the refund will be very small if you have already used the bike in the "peak motorcycle season", because you have already "used up" a significant portion of your annual policy.
so if you pay up front and cancel early, you get a money back.
but if you pay monthly and cancel early, you owe money?
makes sense :p
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Just a question hopefully someone can answer.. the chart states policies which begin at the 1st of each month.. if i started Jun 15/10 would that be considered Jun 1st or Jul 1st for policy begin date come renewal time?
So say its considered Jun 1/10 and i cancel in Dec 1/10
then i would owe 13.7% according to the chart
if i pay $160 a month then it would be ----> (160)(12)(0.137) = $263.04 i owe correct?
So if thats the case.. why would anyone continue to pay for insurance Jan,Feb,Mar,Apr when they could just cancel early and save $500-600. The only reason i could see for staying is if its nice weather and they want to ride once in a while during Jan-Apr.
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
evang
so if you pay up front and cancel early, you get a money back.
but if you pay monthly and cancel early, you owe money?
makes sense :p
Actually, it is possible to pay monthly, cancel early, and still be entitled to a refund. Basically:
- If you start your monthly policy in the Fall or Winter and cancel early, you will probably be entitled to a refund.
- If you start your monthly policy in the Spring or Summer and cancel early, you will probably owe the insurer money.
This is all in the charts.
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
poco
Just a question hopefully someone can answer.. the chart states policies which begin at the 1st of each month.. if i started Jun 15/10 would that be considered Jun 1st or Jul 1st for policy begin date come renewal time?
The charts start on the 1st of each month to keep things simple. For a more accurate calculation, download the Excel calculator that I attached to the original post.
Quote:
Originally Posted by
poco
So say its considered Jun 1/10 and i cancel in Dec 1/10
then i would owe 13.7% according to the chart
if i pay $160 a month then it would be ----> (160)(12)(0.137) = $263.04 i owe correct?
Yes, that is how much you would owe if you cancelled on December 31.
Quote:
Originally Posted by
poco
So if thats the case.. why would anyone continue to pay for insurance Jan,Feb,Mar,Apr when they could just cancel early and save $500-600. The only reason i could see for staying is if its nice weather and they want to ride once in a while during Jan-Apr.
You're forgetting May (a pretty big riding month), since your policy took effect on June 1. Think of this in terms of how much you pay to be covered in each month, based on the premium earning schedule sent to you by State Farm. For example, assuming your $1920/yr policy, this is how much you are paying for each month:
Jan: $38.40
Feb: $38.40
Mar: $76.80
Apr: $153.60
May: $230.40
Jun: $307.20
Jul: $307.20
Aug: $307.20
Sep: $230.40
Oct: $153.60
Nov: $38.40
Dec: $38.40
By giving up coverage for Jan, Feb, Mar, Apr, and May you would save $537.60; however, most of these savings are weighted to April and May which can be perfectly good riding months. If you don't mind giving up the Spring riding (I personally love Spring riding when it is cooler outside), you can save a bit as I've illustrated above.
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Anyone know if selling the motorcycle does not leave you on the hook? I heard this somewhere.
I was told that if you sell your motorcycle with statefarm you are not on the hook for any additional costs. Is that true?
Re: Thinking of cancelling your State Farm policy? Want to know your Penalty/Refund?
Quote:
Originally Posted by
KrazyBones
Anyone know if selling the motorcycle does not leave you on the hook? I heard this somewhere.
I was told that if you sell your motorcycle with statefarm you are not on the hook for any additional costs. Is that true?
If you sell your car/bike and immediately replace it with another car/bike, then your policy will continue in force with just a change in premium. You will be on the hook for any difference if your new vehicle costs less to insure or you are purchasing less insurance coverage.
If you sell your car/bike but don't replace it, then you are cancelling the policy and you are on the hook for the premium used but not paid for.
