Financed Motorcycle Insurance Woes
March 2, 2006 11:31 PM Subscribe
I financed a used motorcycle and am faced with unexpected high insurance rates. What are my options?
posted by Bondrake to travel & transportation (25 answers total) 1 user marked this as a favorite
I have had bikes in the past, but have paid cash for them. Same thing with all of my cars. I don't like paying interest if I can avoid it at all, but I had been very eager to ride the last couple of months (I'm sure the motorcyclists reading out there know the feeling) and didn't want to wait four months and miss spring riding weather just to have the $5,000 I needed saved to buy another bike, so I bit the bullet and went to a dealership last weekend. I got an '04 SV650s, which is great. With tax, title, license, and a 24-month warranty it came out to around $6,500. I know that is more than I would pay for one private party, but it was worth it to me to be able to ride now.
Here's the problem. I am used to paying less than $30/month for liability insurance. The state I'm in (Arizona) is a title-holding state and I found out after the purchase that I have to have comprehensive and collision coverage if there is a lien on the title. This raises my rate to about $330 /month (I'm young). I have Progressive right now and have gotten higher quotes from a couple of other providers.
Even if I live lean and put my money into paying off the loan in 8 or 9 months (luckily Arizona also has no prepayment penalties) I'm left with an excess insurance payment of at least $2,400 more than I was expecting.
So basically.... overpaying and paying interest in order to ride now rather than in 4 months (and also get an all-inclusive 2 year warranty) was worth it to me... overpaying, paying interest, and overpaying for insurance is definitely not worth it for me.
This leads me to the actual question: What are my options? I initialled a document at purchase that said, "Purchaser understands that there is no right of rescission; no option for return or exhange, and the purchase of title/or registered vehicle(s) has been made." How binding is this and do you think the dealer would offer any flexibility? If so, how should I approach them?
If not, suggestions for alternate providers that might be cheaper would be great. I don't care if they are no-names and could possibly have horrible service, as long as the State of Arizona and my lienholder finds them acceptable. I am a responsible driver/rider and am not expecting any mishaps. I am 20, male, and have one ticket on my record from march of '04 for doing 48 in a 35 (watch out for the camera vans they drive up off the side of the road in Tempe, they trigger at 10 over and Tempe PD thinks it's a good idea to park them immediately after a 45 transitions to a 35 on eastbound lanes early in the morning).