Motorcycle insurance policy cancelled - Honda Motorcycles - FireBlades.org
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post #1 of 37 Old 10-31-2003, 2:50 PM Thread Starter
 
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Re: Motorcycle insurance policy cancelled

Yesterday I get my invoice for auto/motorcycle insurance and it says that my bike policy was terminated due to company initiation. WTF, I say to myself, it's gotta be an error.

After making several calls, I find out that State Farm has decided to cancel motorcycle policies that have a claim filed. No notice to their customers and my agent didn't know anything about it either. Heck, I never received a notification. They're not planning on notifying me until 30 days before my policy expires which occurs on 12/12/03.....bastages. I have no points and have filed no other claims with them. I have a clean record and always have.

Anyway, the story gets better....I spoke with an underwriter and she said that they don't have to tell their customers about any underwriting changes, not even those that greatly affect their customers. Jerks!!!! She also wouldn't tell me when they implemented this change.

So, I've been paying for collision and comprehensive coverage only to now get my policy canceled 13 months after I filed the claim. Why bother having insurance coverage?? She couldn't explain why they waited so long nor could she provide an answer to why they didn't tell me that my policy would get canceled when I called to inquire about the ramifications of filing a claim.

I'm fuming. I called my agent and he said that he had no idea about the cancelation policy until I called him. It's not documented in my policy details anywhere. He's making a few phone calls to see if he could help me out somehow.

Maybe you guys should check your own policies to see if the guidelines have been changed for you too. It would suck to find out after the fact.

I called the NJ Division of Banking & Insurance and discussed the situation with them. They verified that motorcycle insurance policies are not regulated by them and that the carriers can make their own rules. I'm getting paperwork from them to file a complaint and they said they'd investigate it. I'm not holding my breath for any results, though.

Other carriers charge an arm and a leg for insurance...State Farm is by far the cheapest in NJ. Any ideas on how to go about fighting this or am I screwed?
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post #2 of 37 Old 10-31-2003, 2:53 PM
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Re: Motorcycle insurance policy cancelled

Man, I'm sorry to hear about that. I don't reall have any suggestions right now. I use State Farm as well but we've established a pretty good relationship with our agent over the last 20 or so years.

I guess you can't threaten to take your business elsewhere...
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post #3 of 37 Old 10-31-2003, 3:04 PM
 
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Re: Motorcycle insurance policy cancelled

Yeah, the only way to keep an insurance company happy is to pay your premiums but never make a claim. Biggest extortion racket going. It's the only service I can think of where you are required to pay but you don't dare use it. I can't get started on insurance comanies I may develop a heart condition. I want to burn every one of their buildings to the ground. Then I want to burn all of their employees homes. Then their families homes. Filthy mother f'ers.
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post #4 of 37 Old 10-31-2003, 3:23 PM
 
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Re: Motorcycle insurance policy cancelled

Like sweetonion, I'll choose not to go off about the evil empire that is auto insurance.

I'm sorry you're getting hosed, and I hope you find a solution. Maybe it's time for you to go track-only...
(or send your bike through their front window )
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post #5 of 37 Old 10-31-2003, 3:35 PM
 
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Re: Motorcycle insurance policy cancelled

Unfortunately, insurance was never meant to be used for so called 'trival' claims, even though they are defined as covered under most policies. I deal with 2 of the largest actuarial firms in the world, and they have gone on record as saying that insurance is designed to cover your losses in the event of a catastrophy or disaster, not to repair a dent or replace a handlebar. Once you figure that one out and raise your deductibles accordingly, it really means that unless you 'really can't' afford to pay for it yourself, then and only then should you file a claim.

If your claim was for a totaled bike and they covered it, then alledgedly you would have gotten your moneys worth (?).

The best one is that most insurance carriers are now factoring in your credit rating as a means to calculate your rates. This is the result of a 450 element many to many array used to determine 'associated' factors involved in financial exposure by the carriers. It takes over 4 hours to run this program on a 32 processor box specifically designed to run in Fortran/Assembler.

Bottom line is that they are in this to make money, not to lose it, so whenever they review the loss ratios and they can identify a trend, the insured ends up taking the hit . . .
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post #6 of 37 Old 10-31-2003, 3:49 PM
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Re: Motorcycle insurance policy cancelled

I'd be real curious to know if this is a regional policy decision.

"It is better to post and risk reposting than to have never posted at all."




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post #7 of 37 Old 10-31-2003, 4:00 PM
 
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Re: Motorcycle insurance policy cancelled

sorry to hear of this HG.

this is just one of many reason why i carry only theft and liability. you have to be able to afford to throw your machine in the weeds and cover the damages yourself. end of story.

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post #8 of 37 Old 10-31-2003, 4:08 PM
 
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Re: Motorcycle insurance policy cancelled

this does suck... A BIG ONE!

And like freq, I had changed mine to theft/fire, liability only...
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post #9 of 37 Old 10-31-2003, 4:27 PM
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Re: Motorcycle insurance policy cancelled

(Not directed toward HG)

If I give you $50/month will you promise to replace my $10K bike if I trash it? *That's how insurance works. *The risk of replacement is spread through the customer base. *So happens a lot of motorcyclists have total losses in a short period of time. *Who exactly is supposed to pay for that? *Blame the stuntaz...

Insurance is never worth it unless you need it. And it's a business just like everything else. It would be great if there were a company that specialized in giving sportbikes affordable insurance, but that company would be out of business in no time flat.




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post #10 of 37 Old 10-31-2003, 4:28 PM
 
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Re: Motorcycle insurance policy cancelled

Quote:
tigerblade : (Not directed toward HG)

If I give you $50/month will you promise to replace my $10K bike if I trash it? *That's how insurance works. *The risk of replacement is spread through the customer base. *So happens a lot of motorcyclists have total losses in a short period of time. *Who exactly is supposed to pay for that? *Blame the stuntaz...

Insurance is never worth it unless you need it. *And it's a business just like everything else. It would be great if there were a company that specialized in giving sportbikes affordable insurance, but that company would be out of business in no time flat.
yeah, but after they replace it, wouldn't they want you to continue paying??
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post #11 of 37 Old 10-31-2003, 4:31 PM
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Re: Motorcycle insurance policy cancelled

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ccwilli3 : Quote (tigerblade @ Oct. 31 2003, 3:27pm)(Not directed toward HG)

If I give you $50/month will you promise to replace my $10K bike if I trash it? *That's how insurance works. *The risk of replacement is spread through the customer base. *So happens a lot of motorcyclists have total losses in a short period of time. *Who exactly is supposed to pay for that? *Blame the stuntaz...

Insurance is never worth it unless you need it. *And it's a business just like everything else. It would be great if there were a company that specialized in giving sportbikes affordable insurance, but that company would be out of business in no time flat.
yeah, but after they replace it, wouldn't they want you to continue paying??
I imagine the philosophy is that you had one claim, so you'll probably have more. They don't want to be down $20K the next time.

Is a paradigm worth 20 cents?
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post #12 of 37 Old 10-31-2003, 4:37 PM
 
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Re: Motorcycle insurance policy cancelled

Interestingly, State Farm has replaced 3 cars for me since 1988 and they have never raised my rates or threatened to cancel me. This obviously doesn't apply to bikes, but you would think that over 75K in payouts would have triggered some sort of retaliatory action on their part. None of the totals were caused by me (or family members) although here in Michigan that doesn't make as big of a difference as it would in several other states.

The interesting thing is, they have threatened to (well not actually threatened, but told me they would) cancel me if I filed 3 homeowner claims within a 3 year period. In Michigan, lighting strikes on my well can happen 3 times in a month, so I don't file any type of claim unless it's very serious just to keep my coverage intact. A sorry state of affairs, but that's the way the game is played . . .
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post #13 of 37 Old 10-31-2003, 4:43 PM
 
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Re: Motorcycle insurance policy cancelled

Quote:
abtech : *It takes over 4 hours to run this program on a 32 processor box specifically designed to run in Fortran/Assembler. *
Wow. That is one hell of a lot of number crunching, especially in something as efficient as FORTRAN.



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post #14 of 37 Old 10-31-2003, 4:51 PM
 
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Re: Motorcycle insurance policy cancelled

Think about a 450 element array (that's 450 X 450 many to many) so each element has to be evaluated for each variable and then the results are evaluated against all array members. The populations aren't simple either and usually contain anything from simple unsigned long values, complex boolean formula all the way to 8 level quadratics.
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post #15 of 37 Old 10-31-2003, 4:55 PM
 
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Re: Motorcycle insurance policy cancelled

Huh... I thought some actuary / functionary just lost his girlfriend to a sportbike rider and said, 'Lets screw all the motorcyclists today......'
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