How to Switch Your Motorcycle Insurance Company?

Person sitting by Harley Davidson motorcycle

If you’re coming toward the end of your current motorcycle insurance plan or you’ve had a significant life event, you may be considering switching insurance providers to lock in a cheaper rate or benefit from a more comprehensive plan.

But how do you go about doing so? Read on to discover everything you need to know.

Why switch motorcycle insurance companies

There are several different motivations for switching your motorcycle policy provider, including:

You’ve had a bad experience with your existing provider
You want to find a cheaper motorcycle insurance premium
You’re not happy with the level of claims customer service you’re receiving
You’re moving to a new state, and your current insurance company doesn’t offer insurance in that location

When to switch motorcycle insurance providers

There are several scenarios whereby it may make sense to switch your current motorcycle insurance provider, including:

You want to add a new driver to your insurance plan - Let’s say your teenage son or daughter has started driving a motor vehicle. You may want to add them to your policy. In doing so, finding a provider that allows for bundled insurance discounts may be much cheaper.
You’re experiencing a life-changing event - Retiring, getting married, purchasing a home, and other life-changing events can impact your insurance needs. This is often the best time to upgrade your policy and shop for a better deal or additional discounts.
You’re moving to a new ZIP code, city, or state - Your current insurance provider may not offer insurance plans in your new location. This may mean you have no choice but to look for new motorcycle insurance coverage.

The best time to change insurance providers

The best time for motorcyclists to switch insurance providers can vary depending on individual circumstances.

One good time to switch your current policy is when it is up for renewal, as this can minimize the potential for cancellation fees or other penalties. However, it is also possible to switch mid-term if a better option becomes available. In this scenario, however, switching mid-term may result in losing any discounts or benefits you accumulated with the previous provider.

To minimize potential disadvantages, ensure no coverage gaps exist when transitioning from one insurance provider to another. Carefully compare the quality and cost of different policies to ensure you get the best deal possible.

How to compare policies side-by-side

When comparing motorcycle insurance policies looking at some key factors side-by-side is vital. These are as follows:

What deductible do you need to pay? - The deductible is the amount you pay toward a claim. For example, if the deductible is $250, you’ll need to pay the first $250, and the insurance provider will settle the rest of the bill up to the value of the vehicle or the policy limits, whichever is lower. Typically, the higher deductible, the lower the cost of insurance.
Available discounts - If you’ve taken a safety course or been riding a motorcycle for ‘x’ years without making a claim, you may be eligible for an experienced rider's discount or accident-forgiveness. Compare available discounts when assessing various policies alongside each other.
What’s covered? - Finally, it’s important to have a good understanding of all the different scenarios that may be covered under the insurance plan you’re considering.

Steps to switch motorcycle insurance companies

If you want to terminate your existing motorcycle insurance policy and initiate coverage with a new provider, here are the steps to follow to maintain continuity of coverage:

1. Call your current insurer

The first thing you need to do is get in touch with your existing insurance provider.

Find out where you currently stand regarding your existing policy, i.e., how many months are left. You should also tell them why you want to leave.

If your motivation is to secure a better rate, your existing insurance provider may come up with an even better deal.

2. Check if you'll be charged a cancellation penalty

Determining whether you’ll be charged a cancellation fee for leaving your policy early is important.

3. Have a new policy in place

Don’t cancel your current policy without having a replacement contract of insurance in place. Spend some time assessing the market and getting quotes.

Once you’ve found the right policy for you, you can purchase this and select a start date that coincides with the end of your existing coverage.

4. Print out your new motorcycle insurance card

Once you’ve organized new insurance, print your new motorcycle insurance card, and place it with your vehicle registration.

5. Cancel your old insurance policy

Now that you’ve gotten a new insurance plan, you’ll want to cancel your existing one. Contacting your current insurance carrier for the specific cancellation procedures is recommended.

6. Request a refund of unused and prepaid premiums

Finally, if you’re eligible, request a refund for prepaid and unused premiums you won’t use anymore.

Frequently asked questions about switching motorcycle insurance

When does it make sense to stay with the same insurer?

It makes sense to stay with the same insurer if moving to a different insurance carrier is more expensive and you’re happy with your existing provider's service.

It also makes sense to stay with the same insurer if you’re in the middle of your policy and will be charged a hefty fee for leaving.

Should I cancel my motorcycle insurance if I'm no longer driving?

There are several reasons not to cancel your motorcycle insurance policy during the winter months or if you take a break from riding.

1. Theft

Theft and vandalism could rob you of your motorcycle investment. You may not have insurance protection for these potential losses without comprehensive coverage.

2. Damage

A significant winter storm, a fallen tree, or the possibility of fire should all be considered when evaluating the cancelation of your insurance policy.

3. Laws

Before canceling your motorcycle coverage, you must check with your local DMV regarding their registration law. Many states require continuous insurance coverage and charge reinstatement fees.

Do I need to let my lender know about switching motorcycle insurers?

Yes. It is important to provide the new carrier with your lenders/lienholder’s address. Otherwise, there could be penalties from your lender for the canceled policy.

Most lenders will be fine with you switching insurance providers so long as you maintain the level of coverage required as part of their agreement with you.

How do I switch companies without a lapse in coverage?

You should start off by assessing your current policy to determine the end date. When taking out a new insurance plan, you can select this insurance policy to start on the end date of your current plan to ensure there’s no lapse in coverage.

Is it bad to switch insurance companies?

No, switching contracts of insurance shouldn’t be frowned upon. People switch insurance companies all the time for a range of different reasons, however, make sure you don’t lose a discount on another policy by switching.

Bottom Line on switching motorcycle insurance companies

As you can see, a lot must be considered when switching motorcycle insurance companies. There can be benefits to doing this. However, it’s vital to go about it correctly.

Ensure you understand your current policy's terms and conditions and cancel it correctly. The last thing you want is to face unexpected cancellation fees or a coverage gap!