Fee for cancelling insurance, can they do that?



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Thread: Fee for cancelling insurance, can they do that?

  1. #1

    Join Date
    Jun 2016
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    Oshawa
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    13

    Fee for cancelling insurance, can they do that?

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    Got a bike at the beginning of this year, started insurance in April through Echelon (Dalton Timmis as the broker) Paid first two months up front to start the policy off, than paid 1 if not 2 more months after that. Never had a claim or any issues. Will be having surgery soon and will be out for the season so I sold the bike as it would just be sitting & that's just too much money for me to have tied up not being used. Anyways I called in to explain why I sold the bike and had to cancel and they want to charge me another 1.5 months of insurance that I will not be using which I find ridiculous. Sure they take a risk insuring someone and you pay them for that risk, but I didn't cost them anything and they already got $350 from me for that risk, but they still want almost another $200. Just wondering if there is anything I can do about that or do I have no choice but to pay it
    2016 CBR500R - Flat Black

  2. #2
    JavaFan's Avatar
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    Mar 2017
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    613 ghetto
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    Re: Fee for cancelling insurance, can they do that?

    a 12 month policy has for each month an "earned premium"
    the EP months are from March to November I believe
    with June July and August as the highest percentage months
    Dec Jan and Feb are 0% earned months

    so what they are saying is you have used the bike for an earned premium total
    in excess of the total of the payments you have made

    you can push the broker for a breakdown on this, don't know why it's like pulling teeth
    but they seem to not like to take the time to do it for you

  3. #3

    Re: Fee for cancelling insurance, can they do that?

    Quote Originally Posted by JavaFan View Post
    a 12 month policy has for each month an "earned premium"
    the EP months are from March to November I believe
    with June July and August as the highest percentage months
    Dec Jan and Feb are 0% earned months

    so what they are saying is you have used the bike for an earned premium total
    in excess of the total of the payments you have made

    you can push the broker for a breakdown on this, don't know why it's like pulling teeth
    but they seem to not like to take the time to do it for you
    This ^^^

    Im gonna quote from another thread

    "ou can cancel and switch companies at any time. The math all depends on when your policy started. Motorcycle policies are priced based on the riding season, so how much you owe your current company will be based on how much of the riding season your policy was in force for. If it started in the spring you probably want to wait until renewal as most of the riding season has been used.
    For some rough math I've included the earned premium chart used by most companies. If your policy were to start on April 1st for example and you were to cancel at the end of September you would have earned 90% of your policy premium.
    That means if you were to cancel today you would owe a total of 90% of your total annual premium to your current company minus how much you've paid them so far. If you paid your full premium at once you would get 10% refunded. If you were on monthly payments, you would subtract how much you paid with your monthly payments from the total amount owing for how much you would still have to pay your current company."

    You can check out the chart if you scroll down here:

    http://www.gtamotorcycle.com/vbforum...91#post2563891

  4. #4
    Riceburner's Avatar
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    Aug 2002
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    Stuck in Reality
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    6,745

    Re: Fee for cancelling insurance, can they do that?

    Premium breakdown is probably on the back of you policy.

  5. #5

    Join Date
    Jun 2003
    Location
    West Toronto, GL1500
    Posts
    5,970

    Re: Fee for cancelling insurance, can they do that?

    http://www.gtamotorcycle.com/vbforum...Penalty-Refund

    There is another sticky as well but this gets the idea across.

  6. #6

    Join Date
    Jan 2018
    Location
    Etobicoke
    Posts
    121

    Re: Fee for cancelling insurance, can they do that?

    Are you never going to ride again?

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