AA Motorcycle Insurance Cancellation

HD1882

Hello,


I am planning on buying a new bike this weekend. I am currently with AA I called to ask how much the change of bike will increase my premiums and it turned about to be a huge amount. Especially when compared to quotes from comparison sites. I asked for a quote to cancel the insurance. They told me it will be £75 fee plus £52.98. A total of 127.98. I pay monthly and have so far paid £127.24 towards the total cost of £200.92. I have had the insurance for 6 months (incl September). I am very surprised I have to pay the £52.98 as from my point of view I have paid for more than 6 months worth of insurance. If anything I should be getting 20 quid back?


It works out cheaper to continue paying the 4 more instalments of £18.42 to finish the insurance and to start a new policy for my new bike with 0 NCB?


Does anyone know if this is allowed? The bike will have a new owner etc..


Any help will be massively appreciated.


Harry

cajef

HD1882 wrote: »

I have had the insurance for 6 months (incl September). I am very surprised I have to pay the £52.98 as from my point of view I have paid for more than 6 months worth of insurance. If anything I should be getting 20 quid back?

Insurance is an annual policy by paying monthly you have entered a credit agreement to pay the for the insurance by twelve monthly amounts.

By cancelling the policy mid term the remainder of the yearly amount is due plus whatever cancellation fee is in their policy agreement.

HD1882

mine is made up of a deposit and 9 payments. I only have 4 left.


So, for example I paid the full amount upfront and want to cancel after 6 months. I would have to pay the cancellation fee and I would get no money back? Surely you would get something back as you are not using the second 6 months of the insurance. So why doesn't it work that way with the instalments?


Its cheaper to just let it run... is there any problem with doing this?

Quentin

HD1882 wrote: »

Its cheaper to just let it run... is there any problem with doing this?

You would have to inform your insurer you had disposed of the bike - whether or not they would allow the poliy to continue with no bike covered depends on the individual insurer - though unlikely.


If so then swallow this as part of the expense of changing bike

forgotmyname

If you leave the bike insured there is a risk that someone could claim from you.

Wait until the insurance is up before changing bikes. Saves you cancellation fees and you will have a years no claims so the new bike will be even cheaper to insure.

HD1882

But insurance is for you to ride the bike. Not for the bike it's self. So I don't see any problem with letting it run...

cajef

HD1882 wrote: »

But insurance is for you to ride the bike. Not for the bike it's self.

No it is not, you insure the bike it has to be insured for you to ride it, that is why the insurance require the registration number and the value of it.

forgotmyname

If the new keeper decides not to insure it and has an accident a 3rd party may claim from your insurance. And your insurance will claim the money back from you.

Or you get a knock on the door at 3am asking why you failed to stop. You sold it.. why are you still insuring it? Lets discuss it at the station?

Aretnap

HD1882 wrote: »

But insurance is for you to ride the bike. Not for the bike it's self. So I don't see any problem with letting it run...

The Road Traffic Act makes the insurer liable for third party claims regardless of who is riding the bike - basically to ensure that victims of uninsured drivers have someone to claim against. So if you don't cancel the policy and the new owner doesn't insure it your insurer could end up paying out if he causes an accident - potentially paying a lot if it's a serious accident.

There is then a risk that the insurer could demand that you reimburse its costs as you had not informed it of the sale, as your policy terms doubtless require you to do. This has actually happened.

http://www.dailyrecord.co.uk/news/scottish-news/scots-biker-insurance-hell-after-4141840

It was reported on here by someone with knowledge of that case that the insurer eventually backed off, that time at least, and whether they would actually be successful if they pushed it to court I don't know. However personally I wouldn't want to risk finding out for the sake of a cancellation fee.

HD1882

"oops I forgot to cancel the insurance" that's hardly a crime! Better than not insuring it!

csgohan4

HD1882 wrote: »

"oops I forgot to cancel the insurance" that's hardly a crime! Better than not insuring it!

''oops I got charged for an accident because I didn't change the bike on the insurance'' Not a crime but it will cost you dearly