Quote Originally Posted by VifferFun View Post
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