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Q: Can you insure your bike for 6 months and garage it the other 6 that you won’t ride it or do you need to insure it year round? A: Echelon General
Insurance only issues motorcycle insurance policies for terms of
12 months. Motorcycle use is primarily seasonal, so Echelon uses
a seasonal table to establish how much of the premium they keep
if you cancel before the end of the policy term. What this means
is there is no financial advantage to canceling your policy in the
fall and starting a new one in the Spring, because Echelon would
retain the majority or all of your premium because of the seasonal
earning pattern. Besides, there can be some very nice riding days
either early or late in the season that you would miss if you cancelled
at an inopportune time. Q: Does having car insurance experience affect my motorcycle insurance? A: Your prior
auto insurance record can affect your motorcycle insurance. If you
have a record of being cancelled for nonpayment or misrepresentation,
for example, or frequent and/or severe claims, you may encounter
either higher rates or a refusal to insure you altogether for your
motorcycle. Q: Am I covered if I’m in an accident where I’m not wearing a helmet in a State where it’s legal to ride without a helmet? A: If involved
in an accident in a state without mandatory helmet laws, coverage
would still apply from this policy. Coverage applies in Canada and
the United States of America. At Riders Plus, we strongly believe
that you should wear a helmet regardless of the laws, because we
want to make sure you are around to be insured for a very long time. Q: Who is Echelon General Insurance? A: Echelon General
Insurance is a Canadian owned company, which is publicly traded
on the Toronto Stock Exchange. Echelon General Insurance Company
is an insurer that concentrates on special, niche products such
as motorcycle insurance. Through the combined efforts of Echelon
General Insurance and Riders Plus, a motorcycle program that caters
to the mature cruiser and touring rider was developed and made available
exclusively through Riders Plus Insurance. Q: Does motorcycle insurance cover me when I’m racing? A: Racing and
“speed tests” are specifically excluded activities on
motorcycle policies, even if you are using your bike on a track
under the supervision of a course instructor. Q: If I get injured in a motorcycle accident, does my income get taken care of while I recover? A: The policy
will cover income replacement for basic amount of $400/wk or 80%
of your gross income (whichever is less). You do have the option
of increasing your Income Replacement limit (and other Accident
Benefit coverages as well, by the way) for an additional cost. The
income replacement benefit is subject to a 2-week waiting period. Q: Is it wrong to have overlapping motorcycle insurance with two separate companies? A: There is
a formula for how much of which coverage is paid by which company
if you have overlapping motorcycle insurance policies. You want
to avoid the situation, because there are enough details to contend
with at claim time without having to deal with two or more insurance
companies. Remember that your policy term begins and ends at 12:01
am, so arrange your new policy with Riders Plus to begin on the
same day as your previous policy ends. Q: If your motorcycle gets stolen and you don’t have theft coverage on it, can you call up after the incident and request theft on it and get reimbursed? A: For any loss,
including theft, to be covered, the coverage must be in place before
the loss occurs. That is precisely why there are specific dates
and times that your policy begins and ends. Q: How can I reduce my premium? A: You can increase
your deductibles, but that doesn’t save very much money on
an average Echelon motorcycle policy. Removing Physical Damage coverage
(fire and theft, collision, etc) is another way to reduce the cost
of your policy, but the cost of these coverages on an average Echelon
policy are comparatively low. Riders Plus recommends that you continue
to ride safely and with the utmost care and diligence, and you will
be rewarded with the best rates that can be offered to you over
time. Q: Why did I only receive a 30-day liability slip when I paid for a full year? A: Riders Plus
issues 30-day liability certificates, which are temporary certificates
to ensure you have proof of insurance until you receive the policy
documents and liability slips issued by the insurance company that
reflect the full twelve month term. Echelon always issues the policy
well within the initial 30-day period. Q: Why can’t I pay over 12 months? A: Echelon’s Six Pay Plan
reflects the fact that motorcycle insurance is seasonal. Since most
policies start and renew in the spring, the pay plan ensures that
riders aren’t as likely to be making insurance payments in
the winter months, which can be a painful reminder that they aren’t
riding. Echelon’s Six Pay Plan is among the best payment options
for motorcycle insurance in Ontario. Q: Please explain “short rate cancellation table” as it applies if I cancel my insurance policy. A: Echelon uses a “Seasonal Adjustment Table” for all premium-related changes (including cancellations) to a policy. So if your policy started in the fall and you cancelled it in the early spring, you would get most of your money back; if you started it in the early spring and cancelled in the fall, they would keep most of your money. Riders Plus believes this method of “earned premium” calculation is the most fair way to address this. Standard industry practice applies
“SHORT RATE CANCELLATION TABLES” in Automobile and Motorcycle
insurance to the tables used to keep extra premium when a client
cancels his/her policy before the end of the term. It takes into
account the portion of the premium that has been used to cover you
and your property during the policy period. For motorcycles some
companies keep the entire annual premium once a policy is five months
old, even if the policy started in the fall. Q: What happens if I have a motorcycle accident and hurt someone else or cause damage to property that is not mine, but I don’t have insurance? A: If you do
not carry insurance and hurt someone else or damage property that
does not belong to you while operating a motorcycle, you are legally
liable for the costs incurred. The insurance company of the third
party may pay out these costs but reserves the legal right to recover
any amount incurred from you (and they WILL get the money from you).
Means of doing so may include garnishment of wages until the amount
is recovered. Q: Can I insure my friend’s bike? A: You may only
insure a bike in which you have financial interest and that is registered
to your name. This does not include a bike that belongs to your
friend. Q. If I buy a motorcycle for my son and put him on my insurance and he has an accident, will my insurance go up or will it go on his record? A: If your son
is at fault for an accident his insurance record (and likely his
premium if he arranged his own policy) would be affected. There
would be a claim on your policy, so your insurance record, premium,
and possibly coverage will likely be affected. How the insurance
company deals with that accident in terms of who pays more and why
depends on many factors (such as whether you had the Accident Forgiveness
endorsement). It is always preferable to have your son arrange his
own insurance if he is the owner of the bike. Q: How much motorcycle insurance coverage do I need and what options are best? A: We recommend $2 million liability where the rider qualifies and $1 million otherwise because there are situations where even a bike can cause enormous damage or injury. Coverage for fire, theft, collision, and anything that can damage the insured bike is a matter of discretion that requires a quick consideration of the value of the bike, the available deductibles, and the owner’s appetite for risk. Coverage for New bikes should
always include the OPCF 43 endorsement (Waiver of Depreciation)
that ensures you get what you paid for the bike in the event of
an insured loss, instead of getting the depreciated amount, for
up to two years from the time of buying the bike. Q: Do I save a lot of money by having only basic coverage on my bike and no fire, theft or collision? A: Only if your
bike is worth a relatively low amount and/or you are extremely lucky
and don’t have your bike stolen or dropped. The cost of insuring
your bike for fire, theft and collision is surprisingly low, get
a quote from Riders Plus and we will help you to make an informed
choice. Q. Why are insurance costs for a beginner motorcyclist so high? A: Insurance
rates for beginners reflect the relatively higher risk that they
will experience losses since they are inexperienced and don’t
have a proven record of safe riding. New riders can keep their premiums
lower by riding bikes with smaller engines that are not sport surcharged,
for example, and by riding within the speed limit and obeying the
rules of the road, and by riding defensively to avoid accidents.
Q: If a buddy is riding my bike and doesn’t have his own bike or his own insurance and hurts himself, who covers the medical expenses? A: In the situation,
as your friend does not have his own bike insurance, your insurance
policy will cover certain injury-related costs incurred by your
friend. However, if your friend has a car insurance policy he would
claim for his injury-related expenses through that policy, even
though the injuries occurred on a motorcycle. Q: After an accident in which my bike is written off, do I still get to keep my bike? A: As part of
the settlement of the claim you may be allowed to keep the bike
or parts (i.e. accessories) from the bike. However, this would lower
the overall pay-out of the claim as you would be using the claims
pay-out sum to “buy back” the bike/parts. Depending
on the type and extent of damage, your bike may be branded “salvage”
and as a result would not pass a safety inspection to be re-licenced.
Q. What issues could arise if I try to insure a motorcycle that’s been in an accident? A: If your bike
were in an accident, insurance companies would require proof the
bike has passed a safety inspection and has no remaining unrepaired
damage (pictures would be required as well). You would also want
to ensure that the bike has not been branded “salvage”,
because it cannot be licenced in that case (that happens if the
damage is to the frame, for example). However, it should be noted,
that most insurance companies would not insure that bike. Q: Why is it difficult to get insurance for home built, rebuilt, or custom motorcycles? A: There are several reasons why it is difficult to insure these types of bikes. First, establishing the true dollar value (and depreciation) may be difficult for some customized bikes. Establishing the value can make the claims process far more difficult as the bikes’ parts, accessories and paint jobs would be difficult if not impossible to replace. Since most customized bikes are very personal, it is difficult for a client to concede an objective value in many instances. Also, a great deal of the cost incurred in customizing a bike can be in the labour, which is not covered by your policy. Second, if the bike’s value can be reasonably established, many are valued far higher than our maximum insurable limit. Much of that value is subjective in many custom bikes; for example, a custom paint job that cost $8000 may actually make it more difficult to sell based on the theme of the artwork, and may be ‘priceless’ to the owner of the bike. Third, the custom bike’s
“road worthiness” is more in question than stock bikes.
Many custom bikes are made as works of art and are never (or extremely
rarely) ridden, and often not even plated for the road. A really
cool looking custom bike may not successfully pass a safety inspection
due to handlebar length, etc. Q: Why do insurance companies insist that I must insure my bike for liability, fire, theft and collision when I have a lienholder on my bike? A: The reason
insurance companies insist you have full coverage on your bike is
due to the contractual obligation you, the insured, has with the
company that is financing your bike. All lienholders (or leasing
companies) require that during your borrowing term you must maintain
a coverage minimum of liability, specified perils and collision;
they want to ensure that they will get their money back if anything
happens to the bike, and to ensure that they are covered for liability
in the event that the rider causes damage to other persons or property. Q: How does an insurance company determine the value of a stolen motorcycle? A: Insurance
companies typically wait for 30 days to ensure that the bike is
not recovered before they offer a settlement. Actual Cash Value
is used to determine the value of the bike (which is usually close
to the average found in the Blue Book). Any accessories or modifications
that may add value to the bike would have to be proven by the insured
for the insurance company to adjust the payout, so having receipts
and pictures is always advisable. Q: Can I get insurance for corporate owned motorcycles? A: Riders Plus
only insures bikes that are for pleasure use or commuting to work.
Therefore, if a bike were owned by a corporate entity so that it
can be used for commercial or business purposes, it would have to
be insured through another broker. Otherwise, Riders Plus will help
the client to assess the acceptability of insuring a bike owned
by a corporation, and may have to refer the situation to the insurance
company for approval.
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