Not to use this post as a bill board, but I happen to own insurance agencies in a number of states and we do quite a bit of motorcycle/bike insurance. Sorry to hear about your situation. This is a two sided scenario in that the insurance company has the legal right to do this (based on policy terms and conditions), but with a very small effort on the part of your agent, it can be avoided. Most policies have a clause that calls for a penalty for terminating coverage early (Usually 10%). This is to discourage policy holders from moving their coverage for a better deal before the policy expiration date. This is called a "short rate" cancellation. However, typically, when you sell the bike your agent will arrange to have coverage cancelled via what is known as a "flat rate cancellation"- in other words- you pay no early cancellation penalty and you get ALL of the unused premium back from the company. Note that many, but not all insurance companies will do this. Some agents do not spend any personal time dealing with these scenarios and simply pass the request on to the carrier for processing with no input. Usually, if there is no special request to do otherwise, the carrier will automatically use the "short rate" cancellation and invoke the penalty. The advantage to the agent is that they get a % of your premium as commission, and most wil not work too hard when it comes to giving that money back along with your premium refund. Feel free to contact me if you have any further questions or need additional assistance. J.D. Preston http://www.ohiocar-insurance.com
