Can I change my two wheeler insurance policy company?
There are a number of reasons why you might have to change your motorbike insurance policy during the year it is in force: for example, if you buy a new bike or want to add another rider to your cover.Pretty much every provider will allow you to make straightforward amendments such as these, but in most cases you will be faced with an administration charge for doing so.This will be on top of any increases in your premiums which could result from you changing to a more powerful or expensive type of motorcycle, or from adding a more inexperienced driver.When do you need to make amendments?Part of the terms and conditions of your motorbike insurance policy will be the obligation to inform your provider if there are any fundamental changes to the people or the bike they are insuring.Basically, your insurer needs to know if the risk they are covering changes in any way. Major alterations must be brought to your provider’s attention — and failure to do so could result in your policy being deemed invalid, and any future claims being rejected or reduced.For example if you modify your bike to make it more powerful, from your insurer’s point of view you are increasing the risk of being involved in an accident. If you fail to tell them about the modification, but they later find out when investigating a claim, they could take the view that you are underinsured and refuse to make a payout.Why else might you need to change your policy?You want to add a named driverYou are planning a trip to Europe and wish to extend your cover to the Continent for a short periodYou or a named rider have changed jobs, or the way you use the motorcycle — for example if you start commuting with itYour or a named rider are given a conviction for a motoring offenceYou move home or change where the bike is kept overnight.Your motorcycle licence has changed if you have completed a new courseIf you’re not sure whether you should inform your insurer about a change, it is best to err on the side of caution: if it is relevant and you don’t inform them, you could risk riding without proper cover.
If my aunt bought a car for me to drive and the insurance is under her name, can I drive the car without being added to the policy?
I want to see the laws surrounding driving a car that's under your relatives name. If it's technically my aunts car and I just drive it around to run errands and go places, can I use it?. What are the downsides to doing this? I will pay my aunt for insurance and I'll pay my own gas.
What happens if I dont renew my car insurance and I m required full coverage because its being financed? Will they know I cancelled it?
I am currently paying for a car through the delaer bi-weekly. I can afford the car payments but my insurance is running 400 a month with thr coverage they require. Is their anyway i can just not renew my current insurance through Geico and my dealer be clueless? As long as i dont wreck of course. How would they find out? My name s Alex. I m 19, and I live in Florida. If you have any answer please help me out! Please send me a link where I can refrence the information as well please and thank you.
How do auto insurance companies make money?
Copied from my answer to a similar question….People seem to be focused on premium vs. claims; however, this is most definitely NOT how insurance companies make money. Most insurers try to price their policies such that the total premiums collected each year are equal to the total amount of claims paid + expenses (we call this the combined ratio - claims+expenses:premium). The goal of a combined ratio of 1 is seen as ideal because it means they are not over or under pricing their policies; meaning that they are underwriting the risks they want as pricing models are designed to attract what a company identifies as their target market. With regard to automobile insurance, most insurers actually run a loss on premiums, normally paying just over a dollar for every dollar of premium (combined ration >1); whereas, they normally run just under a 1 ratio on property insurance. Ultimately, very little, if any profit is made through underwriting (premiums) alone; rather, the reason for writing policies and collecting premiums is to build an investment pool. When an insurer collects premiums they put that money into an investment pool. They use the premiums collected to fund investments (generally in guaranteed or low risk securities). When a claim is made money is then taken from that pool and put into a cash account to pay the claim once the adjustment of it is completed. Where insurers make their money is on the interest and return on investment earned from those premium dollars while they are in the investment pool. The ideal is to have enough premium coming in to keep the investment pool fully funded but the profit itself comes from the return on investment rather than a surplus in the premiums charged vs. claims and expenses paid. Let's look at State Farm Mutual for an example.... in 2011 State Farm collected $32,640,000,000 in premiums; they paid $22,794,000,000 in claims, $4,311,000,000 in claims expenses, $7,527,000,000 in administrative/service expenses; resulting in a LOSS of $1,993,000,000 on underwriting; however, they had investment income of $2.,901,000,000. So while they actually lost $1.9 Billion on premiums vs. claims and expenses (combined ration of 1.06) they made $2.9 Billion on investment income. As you can see, insurers don't make money through premiums but through investment.
Selling my motorcycle, if a potential buyer wants a test drive how do I discourage them from stealing it?
My current motorcycle was purchased used after my son totaled my purchased new version.With the insurance money to replace it, I found a bike that I might want. When I arrived, the seller took a picture of me, my driver’s license and insurance card for motorcycle insurance and held the keys to my car, my house, and my airplane. He felt he had enough information on me that I would undoubtedly return. He was right and we competed the deal. Another option would have been if I brought my son and left him with the seller as collateral. :-)When I was serving in the Navy I worked with a man who had been offered the option by a Texas Judge of enlisting or going to prison. He enlisted. His crime? He took a used motorcycle for a short test ride in Austin Texas and was arrested a week later in Georgia!UPDATE: Before allowing someone to ride your motorcycle, it’s obvious that you should ensure that he/she has experience and good enough skills. It would be a shame to have the motorcycle totaled before you sell it. It’s so obvious that I didn’t mention it previously. Mea Culpa!
What happens to the car loan if the applicant passes away?
It depends.Usually banks require an term insurance for the amount of loan taken. In such case if the applicant leaves this world, the bank would claim the insurance and the family would get the car, without the need to repay the pending loan account.Public sector banks like SBI are more stringent in adhering to these than private banks. Find out from the bank if the applicant's loan has been insured. If they say no, you can ask why this process has not been followed. There might be a small chance that it could have been an overlook from the banks side, in which case you have a point to contest with the bank.