So Insurance Companies Dropped The Rule To Pay 1 Yr In Advance? | GTAMotorcycle.com

So Insurance Companies Dropped The Rule To Pay 1 Yr In Advance?

Pegassus

Pegassus

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I have had insurance on motorcycles for 11 years and always had to pay 1 year in advance with my credit card but since last year they sent me the option to pay in 3 installments (Feb-July-November). Am I special or are all insurance companies offering this method to everybody?

I'm paying $750 a year for insurance so it's refreshing to pay $250 every 4 months.
 
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Never was such a rule. I've been paying monthly for at least 10 years.

Methinks it depends at least somewhat on your credit history ... if you prove to be trustworthy in paying for stuff, then privileges will be extended. Unknowns and people with poor payment histories pay up front.
 
I have herd of others paying for it all at once but I think it helps to be with them for awhile or to have more then one thing insured with that company.
 
TD MM does pay-as-you-ride. So they spread out your year's payments during the season from march to sept.
 
Never heard of that before on any policy. Have never had to do that in my 15 years of being insured.
 
State Farm charged me $1 per month "processing fee" to have monthly payments on my cc.
Agent made sure I understood this charge well, like people had actually got ****** about it or something. I'd understand something greater than $5 and not knowing about it, but $1 on a cc transaction seems like hardly the thing to send people into a rage, considering what the telecoms used to add to everyones bills just for having the service of receiving a bill.
 
Brian P said:
Never was such a rule. I've been paying monthly for at least 10 years.

Methinks it depends at least somewhat on your credit history ... if you prove to be trustworthy in paying for stuff, then privileges will be extended. Unknowns and people with poor payment histories pay up front.
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Insurance companies don't use your credit score to decide how you will pay, if that's the case why was I being charged monthly on my vehicles for the last 15 years?
 
State Farm was monthly for me, don't remember paying a CC fee. Rider's Plus (Echelon) is 6 payments taken straight out of my checking account. I like that best, feels like 6 free months once I'm done paying.
 
Matt Rain said:
State Farm was monthly for me, don't remember paying a CC fee. Rider's Plus (Echelon) is 6 payments taken straight out of my checking account. I like that best, feels like 6 free months once I'm done paying.
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SF takes mine monthly for a $0.75 charge iirc. (House , car , etc.) Dejardins takes monthly for the bike also. No fee , again , iirc.

Edit: SF will take it off your cc? I think I have to go that route.

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How are you guys paying insurance on a credit card? Only option for me was cheque or direct from account. Not like I have bad credit either...card gets zero-balanced every month (usually).
 
My SF agent had a payment machine at his office, then subsequent payments were applied to the same card.
 
Insurance coverage is for a one year term. So payment options are up to the insurance company.

Monthly options are considered financing and subject to fees or interest rates. So read the fine print. Not all the costs are clearly itemized.

Business are not suppose to charge more for more credit card transactions but, there are some exceptions and the bigger companies know how to navigate them while the smaller ones decide not to expose themselves to the possible litigation.

I pay up front on my credit card and get cash back at the anniversary date of my card. Like most of my bills and expenses. Then pay the card off in full.




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nakkers said:
Business are not suppose to charge more for more credit card transactions but, there are some exceptions and the bigger companies know how to navigate them while the smaller ones decide not to expose themselves to the possible litigation.






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Click to expand...

"Cash discounted" = common loophole

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That rule was legislated out when we got modified no-fault... late 80s, early 90s?
The insurance companies are legislated into giving you a "payment" plan of some sort (different companies offer different plans).
Insurance companies are required to offer this plan UNLESS they can prove you are a financial risk, usually bouncing a cheque or payment... or two. (In Kingsway's last years, the only money they made was from penalizing bad financial risks. Kingsway would never drop you if you kept paying the penalties. Everyone else would drop you after two bounced cheques... and write you up for non-payment which could put you into the facility pool).

We used to able to buy a 6 month or a year policy. All paid up front... and a 6 month motorcycle policy cost 95% of a year policy.
There were no monthly payments, but you could finance it, and pay interest.

I don't think they're allowed to charge interest on your monthly payments now, just a service charge.
 
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Just got off the phone with my SF agent. Seems they have offered cc monthly payments for ~2years now. I had no clue. Same sc as debit from chequing. Now to check with cc to see if it qualifies towards rebate. ~ $600/month adds up quick.

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