NGC Insurance Pretzel Logic

[tommy2cyl]

Recently I have made some changes in my vehicles that I own and have discovered something interesting in the
insurance market.  This may have been going on for some time and I was unaware until I sold some vehicles, but
now that I have this is what I am experiencing.

1. Finally said good bye to my 2008 Mini Cooper S that I owned for 17 years.  Upon selling I contacted my Insurance
    agent to take the car off the policy.  Uh, no.  I have a feature called Rate Lock which stabilizes my policy for a certain
    period of time, but if I sell a vehicle it is cheaper to me to keep the minimum amount on the sold vehicle  and continue
    to pay for a vehicle I no longer own.  If I did alter my policy to reflect I no longer own the vehicle my premiums could
    increase as much as $1000 on three remaining vehicles.  I should note that I have made no vehicle claims or had any
    accidents in over 25 years.

2. I owned 5 motorcycles and just sold two of them, so I currently own three. I was just notified by my insurance company
    (different company than car insurer) that my premium would increase.  Not substantially, but still.  I called the company
    and asked why my insurance would go up if I am insuring 40% fewer motorcycles.  I was told that I have a Multi Vehicle
    Discount, so less bikes means higher rate, and, ( I love this) I have a greater risk with riding three bikes as opposed to riding/owning
    five bikes.

Is it just me or do any of you find this bizarre?  With the auto insurance it is cheaper for me to continue insure a car I don't own than to adjust the policy to reflect the actual cars I do own, which is less.  In the motorcycle scenario, in the eyes of the insurance company I run a greater risk owning 3 bikes vs 5.  Would be interested in some thoughts,  especially anyone working in the insurance industry.

[Clifton]

I've never experienced that. Just today I removed a Honda Goldwing from my policy (leaving 6) that was sold yesterday and Progressive is crediting my card $151.

[Perazzimx14]

When I sell a motorcycle or car and cancel the insurance prior to it expiring I get a check back for the difference.

I'd say maybe shop around for another insurer.

[tommy2cyl]

I've never experienced that. Just today I removed a Honda Goldwing from my policy (leaving 6) that was sold yesterday and Progressive is crediting my card $151.

I use Progressive as well.  When I sold my fifth bike, which left me with four, I received a check back.  When I sold my fourth
bike and was down to three, that is when they hit me with a $8.19 increase.  Again, the rate adjustment is minimal, but
it is still weird.  Maybe the crossover point is going down to three bikes instead of four.

[tommy2cyl]

When I sell a motorcycle or car and cancel the insurance prior to it expiring I get a check back for the difference.

I'd say maybe shop around for another insurer.

My auto insurer is Erie Insurance and I am quite pleased with my home, auto, and umbrella policy.  Their rates are the
best I have found and they are a regional carrier so they are not impacted by many of the weather catastrophe's that occur
on the coasts or fires out west.  Their rates are better than anyone else I have found and currently insuring a car I don't own
is significantly less expensive than any quotes from other insurers.  Prior to Erie I had Safeco and their rate increase year over year  were insane.

[Moparnut72]

I would be concerned with having insurance on a vehicle you no longer have in your possession. If something were to happen that exceeded the new owner's coverage your insurance could be on the hook and ultimately you. I don't know where you live but California we can submit a release of liability to the DMV if a vehicle is sold and no longer have control over. I despise insurance companies. A few years ago I dented the fender on my dually which I had a body shop repair on my nickel so as to avoid my insurance company so I wouldn't get a rate increase. Somehow they found out about it and raised my rate anyway. Th body shop probably turned it over to CarFax or somebody.
kk 

[elrealistico]

Wha? you still have insurance on a car you sold??? What insurance company is this?

[dguzzi]

  I'm quite certain that a consultation with a lawyer would be a good thing. For nothing else but to explain why, how and where did they explain it to you.  The fine print must be quite fine for us all to miss that!

  I hope you give us follow ups to your experience with this crap!

[Clifton]

I use Progressive as well.  When I sold my fifth bike, which left me with four, I received a check back.  When I sold my fourth
bike and was down to three, that is when they hit me with a $8.19 increase.  Again, the rate adjustment is minimal, but
it is still weird.  Maybe the crossover point is going down to three bikes instead of four.

What bikes are you left with and what bike did you sell? Maybe not only did you step down a tier in multi-bike discount could it be you sold one of the lower value ones ending up with one fewer, but your same overall yearly mileage is now averaged riding more valuable motorcycles?

[tparr]

I wonder what your premium would be if you sold all your bikes? It might double or triple. Maybe if you insure the last three cars you sold and don't own anymore you could get a bigger discount as well.
Seriously, if my agent told me the bs yours is spouting, I would be shopping for new insurance.

[SIR REAL ED]

I would cancel all your insurance with this company and find a new vendor.

[Stretch]

I have heard of suchlike.

My mother gave my eldest son a car when she stopped driving.

He added the car to his existing policy with a Grand Marquis already on it.

His bill went DOWN! It went down enough for him to pay sales
and excise taxes, tags, and registration.

A truly FREE car!   

The insurance business defies logic - except when it comes to already wealthy
shareholders making more money.

                                                           -Stretch

[sdcr]

I am going through some bulls%#t with my car and home insurance. My carrier, who's name begins with a capital T, has upped my bundled home & Auto policy by 33%. In an attempt to get some relief, I asked my agent to lower the $142,000 Other Structures coverage. My other structures amount to an under $10,000 yard shed for my mower. Agent says that this cannot be accomplished, because they calculate this coverage, as a percentage of my dwelling coverage. This works well for the Insurance Company, but not for me. I have also never had an auto or home claim.

[azccj]

When I added my V100 Mandello to my Progressive motorcycle policy it actually lowered my policy renewal even though I was insuring an additional motorcycle, 6 instead of 5. Go figure?

[kingoffleece]

When I got rid of three bikes at one time my insurance went up.  No "mass" discount on just two bikes.

[tommy2cyl]

What bikes are you left with and what bike did you sell? Maybe not only did you step down a tier in multi-bike discount could it be you sold one of the lower value ones ending up with one fewer, but your same overall yearly mileage is now averaged riding more valuable motorcycles?

OK here is my update.
Regarding bikes and what I sold and what I still have.  I sold 1999 DR 350 SE and a 2017 Van Van 200.  I still own the 2020
V85 tt, 2024 Triumph 400 X and 2025 CF Moto 450 Ibex. Based on some of the comments on this thread, others have had
similar experiences.  When I talked to Progressive the logic is that with more bikes, I would have less risk riding any of those
because I would be spending my riding time between more bikes so less chance of an incident with any given bike.
And yes, the bikes I still have are the more valuable of the lot.  My increase in minimal at $8 bucks and change, it is just weird to be paying more for 3 than I was for 5.   This however pales in comparison to what has transpired with the car insurance.

After reading some of the posts when I started this, I too was having difficulty wrapping my head around keeping a car that I
no longer owned but that it would be significantly more cost effective if I kept it that way.  I went and talked to my agent.
I have a Rate Lock Policy which freezes your premium.  But, if I change the parameters of the the policy, ie buying or selling
primarily, then the policy has to be rewritten at today's rates.  Without getting into too much detail, the person that I was dealing
with originally at the agency was trying to do me a favor.  However, when I went up and spoke with the principal of the agency
I was informed that I could not keep a car on the if I did not own it.  I did ask about being liable if something catastrophic happened
with the car, could I be held accountable if the aggrieved party went searching.  He said that pursuing anyone would stop with
the person on the title of the car.  Again, I think that would be logical/legal but still I had a nagging feeling.  So, the policy was
renewed with 3 cars instead of 4, and my premium went from $1,020 per year for, wait for it..........$1,707.00 per year.  Yup,
a $687.00 increase.  My policy had been locked for 4 years, so this is the new premium based on today's rates.  This will also
be my new Locked In rate going forward until another change takes place in the future.   So, my head is telling me that I did
the right thing and legally this is the way it should be me thinks, and rates change over time (and rarely go down) but my stomach is
is a little out of sorts with the significant rate increase..  I hope this may be of value to some of you, or maybe just a WTF experience
in the world of insurance.