Start Insurance Now?

[architect]

I've been reading the stickies, and still a bit confused. It seems like no matter what, you're paying the annual policy rate. For me, it will be $1200 (State Form Agent just told me it's 100$/month). So what is all the fuss about the break downs and renewal cycles? The agent told me I could do 30$/month parking in the winter moths, but failed to tell me that my summer months would then be >$100/month to make up the difference.

So with that in mind, is there difference whether I get insurance now (fall) vs waiting until spring? Not like I can slip out on winter months or something?

I'm sure I'm missing something here.

I'm getting a bike in two weeks and wondered if there's a point to insuring it now or later. I might ride around a bit now, but could also hold out if it saves me money? But it appears I'm paying $1200 a year no matter what anyway.

[UJelly]

I've been reading the stickies, and still a bit confused. It seems like no matter what, you're paying the annual policy rate. For me, it will be $1200 (State Form Agent just told me it's 100$/month). So what is all the fuss about the break downs and renewal cycles? The agent told me I could do 30$/month parking in the winter moths, but failed to tell me that my summer months would then be >$100/month to make up the difference.

So with that in mind, is there difference whether I get insurance now (fall) vs waiting until spring? Not like I can slip out on winter months or something?

I'm sure I'm missing something here.

I'm getting a bike in two weeks and wondered if there's a point to insuring it now or later. I might ride around a bit now, but could also hold out if it saves me money? But it appears I'm paying $1200 a year no matter what anyway.

Just answered your own question.

Get insured, it gives you the peace of mind ESP. during winter, if your bike gets stolen, and you didn't put insurance your out of luck.

[rafiki911]

Just answered your own question.

Get insured, it gives you the peace of mind ESP. during winter, if your bike gets stolen, and you didn't put insurance your out of luck.

++1 exactly what I did mid November last year. I even ended up riding it til December

[architect]

I just wanted to make sure I wasn't missing anything, considering how much confusing there is out there and all these posts/stickies about it.

So what's the point of having "parking" over the winter with payments reduced? I'd rather have even payments instead of having my summer monthly payments spike up to a larger amount.

[VifferFun]

I just wanted to make sure I wasn't missing anything, considering how much confusing there is out there and all these posts/stickies about it.

So what's the point of having "parking" over the winter with payments reduced? I'd rather have even payments instead of having my summer monthly payments spike up to a larger amount.

By starting your policy now in the off-peak period and paying a level monthly premium of $100/mo, you are essentially making pre-payments on your insurance for Spring/Summer 2012. Although you PAY $100/mo, you are not USING UP $100/mo. With State Farm, here is the rate that you would USE UP the $1200 annual premium:

OCT: $96 (i.e. at the end of the month, you have a positive balance of $4 with State Farm)
NOV: $24 (i.e. at the end of the month, you have a positive balance of $80 with State Farm)
DEC: $24 (i.e. at the end of the month, you have a positive balance of $156 with State Farm)
JAN: $24 (i.e. at the end of the month, you have a positive balance of $232 with State Farm)
FEB: $24 (i.e. at the end of the month, you have a positive balance of $308 with State Farm)
MAR: $48 (i.e. at the end of the month, you have a positive balance of $360 with State Farm)
APR: $96 (i.e. at the end of the month, you have a positive balance of $364 with State Farm)
MAY: $144 (i.e. at the end of the month, you have a positive balance of $320 with State Farm)
JUN: $192 (i.e. at the end of the month, you have a positive balance of $228 with State Farm)
JUL: $192 (i.e. at the end of the month, you have a positive balance of $136 with State Farm)
AUG: $192 (i.e. at the end of the month, you have a positive balance of $44 with State Farm)
SEP: $144 (i.e. at the end of the month, you have a positive balance of $0 with State Farm)

See how that works? The rate at which you pay has nothing to do with the rate at which you "use up" the premium. For "simplicity", State Farm allows you to pay an equal amount each month.

DISADVANTAGES OF STARTING NOW:

• You will pay $196 for coverage in Oct, Nov, Dec, Jan
• You will have to start making $100/mo payments now instead of the Spring

ADVANTAGES OF STARTING NOW:

• You can ride in the nice October weather (or occasional nice winter day)
• Your bike is covered for fire/theft over the winter
• You are paying premiums faster than you are using them up (meaning you will never be on the hook for additional premium if you cancel the policy early)

For the gory details on State Farm premium schedules, refer to this sticky:
http://www.gtamotorcycle.com/vbforum...Penalty-Refund

[architect]

I believe I got it, at least the concept haha. Thanks, that was helpful. Owe you a beer as well in the future.

Now that I actually do some budgeting, even if I wanted to get insured now, I can't afford to fork over the first and last month's payment to StateFarm I'll have to wait till December to have some money. It sucks to get a bike now but not able to ride it!

[VifferFun]

I believe I got it, at least the concept haha. Thanks, that was helpful. Owe you a beer as well in the future.

Now that I actually do some budgeting, even if I wanted to get insured now, I can't afford to fork over the first and last month's payment to StateFarm I'll have to wait till December to have some money. It sucks to get a bike now but not able to ride it!

There's still some good riding left in October (hence why the October premium is $96 as opposed to the November premium of $24). The Fall is one of my favourite times to ride -- I prefer the cool weather to the brutal hot of summer. By starting now, you are correct that you would have to pay first and last ($200) right away, and then an additional $100 at the end of each month. I suggest you start the policy as soon as you are able to financially. In the meantime, make sure it is stored somewhere safe.

[architect]

Same. It would be my ideal season as well. I do not like the heat at all. I don't even own a winter jacket. But after paying for the bike and gear, I don't have the money at all to start. I'll just have to start making insurance payments in Jan

[architect]

Actually, I can muscle up the money I think. But, then I can't go with StateFarm because I don't have my G until December, meaning Rider Plus is the way to go at 1400/year. Do I want to pay $200 more per year to ride NOW? The answer might be yes

[VifferFun]

Actually, I can muscle up the money I think. But, then I can't go with StateFarm because I don't have my G until December, meaning Rider Plus is the way to go at 1400/year. Do I want to pay $200 more per year to ride NOW? The answer might be yes

State Farm allows you to pay in 12 equal monthly installments (i.e. $1200/12 = $100/mo). I believe Rider's Plus requires that you pay the premium in 6 equal monthly installments (i.e. $1400/6 = $233/mo). You might want to look into that before committing. October riding is nice, but I don't think it would be worth an additional $200 to me (but then again, it wouldn't be my first month of riding )

[architect]

Yeah, I asked them about the payment cycles. You have to make the payments the first 6 months as well for the entire year.

200$ is an additional 17$/month. I'll cut back on 3 pints each month? :P Really tough to have my first bike about to sit in my garage for a few months,