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jbone

Insurance rates after payoff?

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jbone
Paid the bike off recently and called up Liberty Mutual to get my bank off my insurance info and I also expected my rate to go down. The rep said it had no effect on my rate , which threw me off since most insurance rates go down once cars / trucks are paid off. Anyone have their rate drop after payoff or is it just my company? 
 

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bigdaddybane
Don't know in US but in Canada it makes no difference whatsoever ...

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DewMan
Paid the bike off recently and called up Liberty Mutual to get my bank off my insurance info and I also expected my rate to go down. The rep said it had no effect on my rate , which threw me off since most insurance rates go down once cars / trucks are paid off. Anyone have their rate drop after payoff or is it just my company? 
It's not like the bank was a rider of the bike. If anything I'm surprised they don't go up once it's paid off since some people are less careful with stuff once it's paid off. 

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mjh937
I have not had my rates change when I have paid off vehicles. I suspect it is because the cost to repair or replace the vehicle does not change because it is paid off.

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kbob2000
The only reason insurance would go down is if you lowered the coverage to liability only. Now that there's no lien, the bank doesn't require full coverage.
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Beemer
I don't ever recall an insurance company being nice to me. I've gone for years and years with no accidents (and no decrease in cost) and if anything, my rates go up along with cost of living increases.

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jbone
Interesting. When I paid off my truck my rate went down about $8 a month effective immediately. And that was with no coverage changes - to my knowledge. Maybe I had a Gap coverage I didn't know about. Oh well, I'll keep giving my Ins. Co my guap.

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level41
In Fl we don't need motorcycle insurance.
However, with car insurance, once it's paid off, you can change the insurance from 'full cover' to 'pip only', which is between 25-50% cheaper.
Your vehicle won't be covered in case of an accident though...
PIP in FL for motorcycles, is very cheap.
 
Depending on the bike, it's like $75 annually, for $10k coverage, and $78 for $50k annual coverage (property and bodily injury).

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avanti
kbob2000 said it all. Only liability is much cheaper (for anything) than liability, comp, and collision; plain and simple.

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USMCFieldMP
I used to think that it went down after paying it off as well, but that doesn't seem to be he case.
 
What is confusing to me, however, is that my motorcycle insurance is cheaper with myself and my wife on it, versus me alone. I added her when I got her a Grom; Grom got stolen, called to remove her from insurance, they said my rates would go up.
 
So, my rates are cheaper for one bike with two riders versus one bike with one rider... even though she is on record as having no license and having not taken any safety course.
 
 
Something to look into for all you married riders that are solo on your motorcycle insurance. (FYI, I have Progressive)

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mjh937
That is an interesting point @usmcfieldmp. I do not know if my wife is on my motorcycle insurance but as it was originally registered in only her name (I was away when it arrived at the dealership so she bought it) I think she must be. My rates for the motorcycle are pretty cheap with State Farm.

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