When you get a motorcycle financed and the bank requires the owner to get full insurance coverage on your bike. Lets say if I were to cancel my insurance after couple of months because of some reason and not have any policy for next year. Will the bank find out and penalize me until I get one?
Or can I get away with that?
Thanks………
The bike has to be insured. You would be crazy NOT to have insurance on a vehicle of any kind that you have financed. If it is stolen or damaged while not insured you still are responsible for the loan!!!!!
Nope, they will charge you for it through the lease at 60% higher rate….Read your lease.
No you can’t cancell, yes the bank will find out,you don’t want to pay the banks insurance on your bike.
technically speaking, YOU don’t own the bike…The BANK does….and the bank is going to require insurance be maintained on on it’s investment….I do know, that in my area where a lot of people put their bikes to sleep for the winter SOME bank will allow you to minimize the insurance coverage….for example:….Your bike is going to be unregistered and NOT driven on the road for an extended period of time…they may allow you to drop the collision insurance…and only carry the fire and theft coverage…best bet is to contact your insurance company and the bank to see what is acceptable to each of them and go from there.
If the bank finds out, you will have a problem. The insurance company may notify the bank in this case. You might get away with it, but good luck.
You are required by the bank to have full coverage for as long as you are financing the bike, and they require proof of insurance. If you cancel your insurance, the bank can and WILL reposess your bike.
If you can’t afford the insurance, there’s probably a reason, no?
I only pay $34/mo for full coverage & medical on a sportbike; why do you think that is?
The bottom line is simple…the bank will discover the lack of insurance. They will then provide you with a date required to have insurance reinstated. If you fail to do so, they have the right to impound the bike. If you try to hide the bike, they can seek a court order/warrant escorted by an officer and impound the bike and also file charges against you for doing so. Then, they can disqualify the loan, make you pay the balance and input a negative rating on your credit. IMO, it’s not worth it.