If you do not need your motorcycle policy, switching providers or getting rid of your vehicle, you have to remember to cancel your current motorcycle coverage. Ignoring the provider is not an option, as you might continue to receive the bills or be contacted by your provider. Moreover, you have to know when and how to cancel, without incurring much or any loss. Here is a guide on how to cancel a motorcycle insurance policy.
The first step in this process is to figure out whether you really need to cancel your policy. If you were replacing your current bike with a newer model, then you would not be required to cancel the policy. Most providers would just update (with new premium and at an additional charge) your current policy to accommodate the new vehicle’s needs. Updating is cheaper than cancelling the current policy and going for a new one.
Some recommend cancelling the policy when the bike is placed in storage for a longer period of time. However, this is not a completely wise decision, as your bike could be stolen during this time, and you will not have a cover against that.
For other reasons like switching providers or getting rid of the motorcycle, you have to cancel your policy. However, make sure you do not have any pending claims, as you will lose those if you cancel the policy before they are paid out.
If you are trying a policy for the first time, in most cases, you will get a trial period as a promotion. You can cancel your policy and get a refund of your premium within that period. However, a small administration fee might be required from you.
After the introductory trial period (if any), cancellation of a motorcycle insurance policy would involve some sort of financial loss like a cancellation fee and your premiums will or will not be refunded, partially or completely, depending on the policy terms. In addition, if you cancel the policy before its validity period, you may not qualify for the no-claims benefit.
Most policies are set up for automatic renewal and increase in premium every year. If you run your policy to its renewal date and decide not to renew, you might not be charged a cancellation fee, provided you inform the insurer about it.
Once you decide to cancel your motorcycle insurance policy, you have to call your provider and let them know. They will instruct you on the proceedings. Most providers would require a signed cancellation form or letter from you. Only when they receive this written confirmation will they effect the cancellation of the policy.