SHOP CLOSED! Should I keep the Coverage or Cancel It? | GTAMotorcycle.com

SHOP CLOSED! Should I keep the Coverage or Cancel It?

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nikos1965

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I put money down on a new bike in February before all this crap started and set a pickup date for April 21st. Found a good Insurer for it and setup coverage to begin on the day I pick it up.

Today my dealership announced it will be shutting down until further notice or when the Government allows them to open again or safe to do so.

My Bike is still in the crate in the shop and will remain there for god knows how long. My monthly payments will begin on that day with or without a bike in possession. I called my insurer and asked them if they can do anything for me since I would hate to pay for something I cant enjoy. Maybe put a hold on it or whatever. He said he never heard of such a thing and the only option would be to cancel with a $100 cancellation fee which I think is illegal and than call up and get a quote at a later date and possibly RISK HIGHER PREMIUM or just keep it.

Not sure what to do here, its not huge money I mean I would hope by sometime in June they will reopen but who knows.

What are your thoughts on what I should do? KEEP IT or CANCEL it?
 
If you cancel the policy they can indeed charge you a fee legally.

And then the gap in your insurance history could raise eyebrows down the road.

Unless you're paying extremely high monthly fees I can't imagine you'll save much cancelling and starting over again in what's likely to be 2-4 weeks maximum after your trigger date of April 21 anyways. If it does you could always drop coverage to the absolute minimum (PL/PD) and sit on it still.
 
The coverage doesnt start for another 3 weeks so when I called enquiring I was kinda thrown back at the mention of a cancellation fee when the policy hasnt even begun.

There woudnt be a gap in Motorcycle insurance, I have another bike currently insured.

I assumed more compassion considering our situation but ya whatever if im getting charged the fee than maybe just keep it covered.
 
Assuming things will only get worse over the next few months, if it were me and I couldn’t take delivery of the bike, I would call up a few days before the policy starts and ask them to push the policy start date out a month.
Sell it to them as more of a change than a policy cancellation.


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raginduck said:
Did the dealership transfer the ownership to you yet?
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Iv given the plates, the sticker and the old ownership tied to the plate and they were taking care of the registeration. I dont think that process has been done yet but not sure. Why do you ask?
 
Robbo said:
Assuming things will only get worse over the next few months, if it were me and I couldn’t take delivery of the bike, I would call up a few days before the policy starts and ask them to push the policy start date out a month.
Sell it to them as more of a change than a policy cancellation.


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Click to expand...

There getting all bent out of shape at 3 weeks before coverage starts, I can imagine what they say to that a few days before coverage.
 
I would have them leave it in the crate and deliver it to my driveway immediately, then advise my insurance company I will not need to begin coverage just yet. But that's just me :|
 
I don't think your insurance company is going to be charging you premiums for a bike you can't take delivery of because of virus shutdowns. I'd be surprised if the insurance industry is not discussing how to fix this type of situation in the background and they will be announcing a solution soon.
If it doesn't get fixed there will be thousands of people who purchased vehicles of all sorts screaming about insurance companies ripping them off and it will end up in the media. I'm sure you're going to be able to defer the start date without penalty.
 
nikos1965 said:
Iv given the plates, the sticker and the old ownership tied to the plate and they were taking care of the registeration. I dont think that process has been done yet but not sure. Why do you ask?
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Because you can't insure something you don't own... it wouldn't be your fault if the bike isn't yours by the time the policy is supposed to begin.
Ask the dealership not to transfer the ownership until the bike is ready..
Then ask your insurer if they want to be called out... for being unreasonably uncooperative during the corona times.
 
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FLSTC said:
I can't recall off-hand, but the percentage of the annual insurance attributed to April is probably not much.

I'd say you're better off contacting the financing company to defer the payment until you actually take delivery.
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I think April is 10%
 
I'm not positive, but if this bike is still in the crate, then i don't think they would have the vin to finalize their paperwork.
 
Wingboy said:
I'm not positive, but if this bike is still in the crate, then i don't think they would have the vin to finalize their paperwork.
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I'm sure the VIN is also located on a sticker on the crate itself. Or at least the dealer would know which crate is which bike/VIN.

I do not think they will be in a hurry to get this bike ready for pick up and do all the paperwork necessary with the ministry.

The insurance company should also be understanding of the situation at hand and make the appropriate adjustments.
Same with any financing companies etc.

In the worse case, I think you can delay the start day of your policy instead of canceling it. It would be the same as asking for the policy to start in the middle of March, anticipating riding weather. Than delaying it to April due to snow etc.
 
If the bike is financed and in your name, it must be insured.
Ask the dealer, nicely, to delay the transfer of ownership.
If the bike isn't in your name you CANNOT insure.
 
bitzz said:
If the bike isn't in your name you CANNOT insure.
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Sure you can. I've arranged insurance on plenty of vehicles technically not in my name (yet) during the purchasing process.
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