a lapse of motorcycle insurance | GTAMotorcycle.com

a lapse of motorcycle insurance

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nikos1965

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I am currently in the process of selling the one bike I have insured and purchasing one. There may be like a 60 day lapse in between the time I sell the old and the time I take possession of the new bike. I have had continuous insurance coverage for 5 years now and have heard that a lapse of insurance is not a good thing to have on your record. I was thinking of keeping my old bike that iv SOLD still insured for the 60 day gap.

What are anyones thoughts on this subject? Can the insurance Companys realise this GAP if I leave it and sting me for higher rates? What to do.
 
nikos1965 said:
I am currently in the process of selling the one bike I have insured and purchasing one. There may be like a 60 day lapse in between the time I sell the old and the time I take possession of the new bike. I have had continuous insurance coverage for 5 years now and have heard that a lapse of insurance is not a good thing to have on your record. I was thinking of keeping my old bike that iv SOLD still insured for the 60 day gap.

What are anyones thoughts on this subject? Can the insurance Companys realise this GAP if I leave it and sting me for higher rates? What to do.
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don't do that. If you keep it insured you could be on the hook for any claims the new owner has and you the insurance company will not be thrilled you insured a bike you don't own. It could be considered fraud as you can't insure something you don't have a financial interest in.
Talk to your broker and tell them to note the file with the insurance company that a new bike is coming. They shouldn't penalize you for a gap that's only a couple of months if you let them know what's happening
 
TK4 said:
The rebate savings on your premium would likely be miniscule. Just leave it on the books.
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Please don't give insurance advice that is fraud . You can't insure something you don't have a financial interest in and the new owners can have a claim and could access coverage under the policy
 
F3800RC said:
Please don't give insurance advice that is fraud . You can't insure something you don't have a financial interest in and the new owners can have a claim and could access coverage under the policy
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Take a minute and look - I deleted the post - relax.
 
A friend, an insurance agent, advised me that if a person is going to be without a vehicle for a period of time they should get listed on someone else's. That way they show continuous coverage.

This would apply to people negotiating a new vehicle as is the OP but also a person being posted abroad for a couple of years.

Of course if their insurability status means a rate hike the deal could be off.
 
nobbie48 said:
A friend, an insurance agent, advised me that if a person is going to be without a vehicle for a period of time they should get listed on someone else's. That way they show continuous coverage.
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Someone else's bike or any type of vehicle? I was under the impression that moto insurers wanna see continuous motorcycle coverage.
 
Matt Rain said:
I was under the impression that moto insurers wanna see continuous motorcycle coverage.
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They shouldnt care about a gap of a few months, 99% of riders in the province dont ride from Dec 1st to March 31st anyways.

If you have to, buy the cheapest beat up 125cc bike you can find and put fire and theft on it for the next several months.
 
Matt Rain said:
Someone else's bike or any type of vehicle? I was under the impression that moto insurers wanna see continuous motorcycle coverage.
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We were discussing insurance for my brother's pickup truck after he spent a few years in Panama. I was led to believe that while much of the insurance act treats motorcycles like cars they are in some ways considered recreational vehicles. Double check before committing.
 
K20EF8 said:
They shouldnt care about a gap of a few months, 99% of riders in the province dont ride from Dec 1st to March 31st anyways.

If you have to, buy the cheapest beat up 125cc bike you can find and put fire and theft on it for the next several months.
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My Insurance provider will not sell me FIRE AND THEFT on its own.
 
Than
F3800RC said:
don't do that. If you keep it insured you could be on the hook for any claims the new owner has and you the insurance company will not be thrilled you insured a bike you don't own. It could be considered fraud as you can't insure something you don't have a financial interest in.
Talk to your broker and tell them to note the file with the insurance company that a new bike is coming. They shouldn't penalize you for a gap that's only a couple of months if you let them know what's happening


Thanks for the advise. I will go with Honesty is the Best policy and see where it takes me.
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K20EF8 said:
If you have to, buy the cheapest beat up 125cc bike you can find and put fire and theft on it for the next several months.
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I was thinking the same thing, but more along the lines of a chassis with a title from the scrap yard or something?

FWIW, I had a six month gap in 2018 and wasn't penalized for such.
 
Almost sounds like the savings of selling your existing bike now and buying a bike a few months from now is outstripped by the effort of preserving insurance continuity.

Unless the bike you want isn't on the market yet. In which case, it still sounds like a lot of effort and thought. Can't just wait 60 days to sell?
 
This is insanity.

Why are we forced to go to such extremes as buying a cheap bike and putting fire/theft on it just so we can show an insurer we have continuous coverage

We live in Canada for crying out loud. Most of us don’t ride for 4-5 months.
 
Aens said:
Almost sounds like the savings of selling your existing bike now and buying a bike a few months from now is outstripped by the effort of preserving insurance continuity.

Unless the bike you want isn't on the market yet. In which case, it still sounds like a lot of effort and thought. Can't just wait 60 days to sell?
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I have a buyer tonight with cash in hand so its hard to let that go. I also should say that my renewal comes in on April 2OTH and not renewing with that company but starting up new with another company that day. That leaves about 7 weeks of a lapse. The present company wont even insure that bike so thats the other problem otherwise I would have just put that on for 7 weeks.
 
ricplayer said:
This is insanity.

Why are we forced to go to such extremes as buying a cheap bike and putting fire/theft on it just so we can show an insurer we have continuous coverage

We live in Canada for crying out loud. Most of us don’t ride for 4-5 months.
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Exactly what Im saying. Its a scam. Just like having 2 bikes and 2 cars, being the only driver/rider but being forced to carry 4 separate liabilities or being forced to put your wife as a secondary driver on a manual sports car she doesnt even know how to start.
 
K20EF8 said:
They shouldnt care about a gap of a few months, 99% of riders in the province dont ride from Dec 1st to March 31st anyways.

If you have to, buy the cheapest beat up 125cc bike you can find and put fire and theft on it for the next several months.
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I would check with an insurance professional. I've HEARD that a months is OK, but it may depend on the insurer. Also, you can't buy just fire and theft anymore for a motorcycle - you must have liability and accident benefits, which are the expensive parts.
 
nikos1965 said:
I have a buyer tonight with cash in hand so its hard to let that go. I also should say that my renewal comes in on April 2OTH and not renewing with that company but starting up new with another company that day. That leaves about 7 weeks of a lapse. The present company wont even insure that bike so thats the other problem otherwise I would have just put that on for 7 weeks.
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I would call the new insurance company and ask them how this would affect their offered premium.

Since you do not have insurance with them yet it can’t hurt you.

But I would probably just sell it since you have a buyer

I don’t think 6-7 weeks will count as a huge lapse

I would think the lapse would start counting at a full missed year.
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