How to explain motorcycle and snowmobile covers to customers
You may get a few calls about canceling motorcycle insurance. Unlike automobiles, however, motorcycles (and snowmobiles) have seasonal insurance coverage that spreads the payments for the driving season over a year.
But many cyclists don’t understand why they pay all year round when they only ride three (maybe four) months a year.
However, this is how the insurance companies set the premium.
“Yes [insurers] did the same as the automobile – where it would be a cancellation based on the number of months in effect – everyone would just drive in the summer and cancel the policy in the fall, ”Scott said Logan, director of personal lines at Mitchell & Whale.
“But that’s when the insurance company‘s premium is earned for motorcycles – March through October.” (It’s similar for snowmobiles but bonuses are earned from November to March.)
“In the old days, [clients] had to pay premiums over six months, not 12, which eliminated a lot of that problem, ”Logan said. “Corn [insurance] companies have changed that to a monthly payment plan to make it easier for people, ”he said. “And I guess to attract more business.”
What can brokers do?
Sign on the dotted line
Mitchell & Whale has its clients read and then sign a form explaining the cancellation policy; However, the brokerage still gets confused and sometimes even angry clients. “Quite honestly, even if they sign it, when they cancel they’re still really angry,” Logan said.
Simplify the language
The brokerage also tries to explain the concept of seasonal hedging, without the jargon. “The insurance industry is ideal for formulations like ‘seasonal rate’ and ‘percentage of annual premium charged,’ Logan said. “We’re trying to put it in layman’s terms: this is what it will cost you to ride your motorcycle each month,” and point out that they pay that over a year.
Write a blog post
A written explanation can also supplement verbal explanations. Many brokerages now have blogs, so use this channel to post an article explaining the coverage – again, in layman’s terms.
Talk about the weather
Another good tactic is having weather conversations. Logan reminds guests of the occasional warm days Canada gets in mid-January or February. “You might want to get out of the bike for a ride. You can do it, but if you’ve canceled your policy, you can’t, ”he said.
Despite these strategies, many people still cancel their insurance, Logan said. “For the most part, they just don’t see paying for [the insurance] when they are not riding [their bikes]. They just don’t get it.
While drivers can opt for pay-as-you-go insurance, offered by CAA, Logan has never heard of anything similar for motorcycles (or snowmobiles).
“No one, to my knowledge, has been able to figure out how to do this with motorcycles, because with a car you have to plug a small dongle into the port under your steering wheel which measures the kilometers”, he said. declared.
Featured Image by iStock.com/hohl