Thinking of cancelling your TD/MM/Primmum policy? Want to know your Penalty/Refund?

[VifferFun]

EDIT: This posting has been corrected and should hopefully be accurate.

EDIT: This posting is only intended for TD / MM / Primmum customers that are on the 7-month payment plan. If you are on a 12-month payment plan, then your policy has been grandfathered from an old Liberty Mutual account and this posting does not apply to you.


Hi Everyone,

Time and time again, GTAM members ask me why they aren't allowed to cancel their TD/MM/Primmum policy (or drop to Fire and Theft only) without paying a "penalty". Although TD/MM/Primmum charges equal premiums every month from March to September (i.e. 7 months), you actually "use up" the annual premium much faster over the Summer months than you do in the Spring/Fall months. TD/MM/Primmum uses the following premium-earning schedule for Motorcycles:

• 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%

Depending on when your policy took effect and when you decide to cancel, you will fall into one of two categories:

• You OWE TD/MM/Primmum for premium that you "used up" but did not yet pay for
• You are entitled to a REFUND because you have paid for more premium than you have "used up"

The beauty of the seven-month "pay-as-you-ride" payment plan is that once your policy renews, you will never have to worry about owing premium to your insurer (since you will then be "using up" premium slower than you are paying it. Once your policy is in renewal, you can cancel at any time and expect a refund.

Although I work in the insurance industry, I do not work for TD/MM/Primmum; however, based on their premium-earning schedule, I have put together the following document to help people understand what they will owe (or be refunded) should they decide to cancel their policy early. The twelve new business examples and one renewal example I have created below are for the following specific policy effective/renewal dates:

• January 1st
• February 1st
• March 1st
• April 1st
• May 1st
• June 1st
• July 1st
• August 1st
• September 1st
• October 1st
• November 1st
• December 1st

For each example, I show the percentage of the annual policy premium that you owe (or are refunded) at the end of each month of your policy.

If your policy has not yet renewed, find the New Business example below with the closest policy effective date to your own, and you can get an idea of what will happen should you decide to cancel your policy. If your policy has already renewed at least once, refer to the single "Renewal Business" example.

Enjoy!

[RLapin]

mods, sticky pls

[zacm7]

didnt read the entire thing but this is seems like a good read. after my ninja was vandalized in late 08 i called up primmum and told them the story they denied repairs on my bikes because of some fine print...so i canceled my policy because winter was coming anyway. then i get a bill in the mail for the remainder of my policy...after fighting and fighting for weeks they sent my bill to a collection agency, needless to say i was forced to pay or it would hit my credit rating. the thing that sucked was now it was canceled, i owed the money for the rest of my policy and i had to fix the damages myself...i guess if i would have sat back and thought about it i would have just bit my tongue and call it a day, but now i had no insurance a bill and a bike i was going to have to fix myself so i lost huge...sucks because their rates were fairly priced for what i was riding.

[VifferFun]

didnt read the entire thing but this is seems like a good read. after my ninja was vandalized in late 08 i called up primmum and told them the story they denied repairs on my bikes because of some fine print...so i canceled my policy because winter was coming anyway. then i get a bill in the mail for the remainder of my policy...after fighting and fighting for weeks they sent my bill to a collection agency, needless to say i was forced to pay or it would hit my credit rating. the thing that sucked was now it was canceled, i owed the money for the rest of my policy and i had to fix the damages myself...i guess if i would have sat back and thought about it i would have just bit my tongue and call it a day, but now i had no insurance a bill and a bike i was going to have to fix myself so i lost huge...sucks because their rates were fairly priced for what i was riding.

Since TD/MM/Primmum policies take effect March 31st, you will typically be entitled to a refund if you cancel in the Spring, and will owe the for unpaid premium if you cancel in the Summer. This is because premium is "used up" faster in the Summer than in the Spring, but you are paying a flat rate all season. If you take a look at the charts/examples it should be clear.

In short, it wasn't TD's fault that you owed them money if you cancelled sometime in the Summer and they have every right to send you to collections. You weren't paying for the remainder of the season, but rather paying for the portion of the season you had already rode but not yet paid for. Yes, it's confusing, and yet another reason why I think insurers should CHARGE premiums at the same rate that you USE UP premium. I don't know why State Farm and TD/MM/Primmum think it's necessary that every month's premium should be identical . . .

[zacm7]

In short, it wasn't TD's fault that you owed them money if you cancelled sometime in the Summer and they have every right to send you to collections. You weren't paying for the remainder of the season, but rather paying for the portion of the season you had already rode but but yet paid for. Yes, it's confusing

i canceled in late October, policy anniversary date was some time in feb so i owed them 3 months...and they got it alright.

[VifferFun]

i canceled in late October, policy anniversary date was some time in feb so i owed them 3 months...and they got it alright.

I find that a little confusing . . . are you not required to pay 8 equal monthly payments with TD/MM/Primmum, from March to October? Perhaps I am misinterpreting what people have told me.