ebike PAYG policy - worth it?

Hi all,

I know this is likely to be a bit 'whichever you think will work for you', but here goes!

Time to renew my insurance for the first time, (first bike policy was last year), Carole Nash insured me last year but for some reason their renewal quote is higher than last years and they're refusing to go down on price, even with a years no claims bonus. ( I won't pretend to understand this!)

So, I've been looking round and am tempted by the ebike PAYG policy where you build up a years no claims in 8 months. Has anyone else done this and found it good? The quote they gave me is about the same as my renewal with CN but obviously this is only for 8 months cover as opposed to twelve. All things being equal, do people think I would be better off taking 12 months cover or 8 months cover for the same(ish) price but the possibility of 2 years no claims bonus in 8 months time?

Anyone got any comments in generel about ebike? CN to be fair have been very good so far but I'll go elsewhere for a cheaper price (ok, I have no loyalty whatsoever!)

My cheapest quote for 12 months was Hastings, anyone got any opinions of these guys as well?

Thanks for reading and for any replies,
Cheers,
Matt

I'm with e-bike pay & go, it is the cheapest I have found. (well i found a lot cheaper elsewhere, but when i crashed they refused to insure me, oops)

The only problem that i've had wih them is that when i reported a crash, and also moved my no claims from an old bike, i had to open a new policy and cancel my old 1, which wasn't a problem, but then they continued to charge me for my old policy, and it took a month to get a refund.

The problem with them is that for the 8 months, you are paying almost a full years insurance, as if you get a standard quote from them it works out almost the same for a year.

The question is what would you benifit more from, cheaper insurance right now. Or fast no claims, so a lot cheaper insurance in a couple of years?

Thats why I went with them, as at my age insurance companies think of the highest number they can, then they double it, just because they can, so the no claims should really help.

[Stu]

Why the h*ll would you want to be renewing again in 8 months rather than 12 months if it is going to cost you the same?

If CN have gone up, surely you can get another quote for a proper 12 mth policy cheaper elsewhere.

I'm with motorcycledirect give them a try

Originally Posted by Stu

Why the h*ll would you want to be renewing again in 8 months rather than 12 months if it is going to cost you the same?

If CN have gone up, surely you can get another quote for a proper 12 mth policy cheaper elsewhere.

Did you read the post? You get a years no claims in 8 months. You actually don't renew every 8 months, the contract is done on a monthly basis, so you actually receive a new certificate once a month, and everything is paid monthly.
The benefit is that you can change your cover with only a month's notice and you get your NCB very fast. The downside is that you pay a premium for these benefits.

I am currently using it, just gained my first year's NCB from them (to add to my other 2) I'm going to hold on to get up to 4 years, then I'll switch to something where I can protect my NCB.

[Stu]

Originally Posted by cartwrim

but obviously this is only for 8 months cover as opposed to twelve.

Yes Carsick I thought I read the post very carefully that is why I don't see why you would want to pay, say, £50 a month to ebike for 8 months when you could give CN £400 for 12 months cover.

But please tell me if i am not understanding it correctly.

I had a similar experience when I changed from a 125 to a 600. I could either maintain my existing policy for say £250 extra premium and would have completed another NCB in Oct 06 or I could pay a similar amount net of the refund from canceling my policy to take out a new policy lasting until Feb 07. I choose the latter.

You're ignoring the benefits of the PAYG contract and the fact that you get your 12 months NCB in 8 months.
They are the reason you might want to pay for that, as I said.
They might not seem like big benefits to you, but they can be useful to some.

[Stu]

I can fully appreciate the benefit of PAYG for cash flow advantages, but you can often pay monthly for normal insurance.
I think you are falling for the con, unless the figures I gave as an example are not right. But cartwrim confirm 8 mths with ebike costs the same as 12 months with somone else.
Sure it's great to get your NCB early, but is it not better to still be covered and not looking to renew just yet for the same price?
It would make sense if it was 25% more expensive but not if it's 50% more expensive than normal cover "12 months cover or 8 months cover for the same(ish) price"

It's about 15% more expensive for me, and incidentally, most insurance companies charge an additional amount for paying monthly.
For me, I think it's certainly worth it, and you did ask why somebody would pay for 8 months cover for about a years premiums. For me, it's more like 10 months cover for the same price as a year, plus the additional benefits of the NCB as well as the convenience of being able to modifiy my policy/cancel with minimal penalties.

It might not suit everybody, but it's a product worth considering for many, I believe.

[Stu]

OK, starting to make sense, but not what Cartwrim first wrote.
Out of interest how does it work in practice? month after month do you have to give them any details? Does the premium change from month to month, if not, do you have any assurance that it will stay the same for a period of time? Have you seen the premium go down after 8 months when you earn your extra NCB (by how much).
Cheers
Stuart