Tag Archives: Finance advice

Motorcycle News, News

Riders may get insurance refund

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Any rider who was sold “worthless add-on insurance”, such as an extended warranty, when they bought their bike through a dealer may be eligible for a refund.

The Australian Securities and Investments Commission says the worthless additions were sold to more than half a million car and motorcycle customers.

The corporate watchdog has announced another $1.7m in refunds of between $143,700 and $7.2 million to more than 30,000 customers. That brings the total to $130m over this issue.

Companies involved include Allianz, QBE, Swann Insurance and Suncorp.

Refund programs

The add-ons include protection insurance, consumer credit insurance, and mechanical breakdown insurance, which is also known as extended warranty.

ASIC found that some customers were sold sold mechanical breakdown insurance when cover would start after the manufacturer’s warranty expired, or where cover would expire shortly after the policy was written.

Riders who believe they have been sold these add-ons have been advised to contact their insurers to ask for their refund.

Last year’s royal commission heard evidence of questionable behaviour by several insurance companies.

ASIC Commissioner Sean Hughes says the failures highlighted by these insurers demonstrate why new design and distribution obligations – passed by the Parliament in March 2019 – are so important.

“ASIC will continue to monitor this sector to make sure the unfair practices of the past do not return; however, the industry has a key role to play in this too.”

The corporate watchdog is working to improve the design and sale of add-on insurance products to help prevent unfair sales.

Source: MotorbikeWriter.com

Motorcycle News, News

Swann backs down on age barrier

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Swann Insurance has dropped its age cut-off for motorcycle insurance after a 76-year-old professor was denied insurance for his Indian Scout motorcycle last year.

Dr Marcus Wigan had been trying to enter an online Swann Insurance MotoGP competition in which entrants only had to apply for a quote. The competition gave no stipulation of an age limit.

However, when he filled in his birth date, the online application rejected his entry with the comment: “Age is not acceptable”. Marcus Wigan age Swann Insurance

The emeritus professor of transport tried to fill out the competition several times but was repeatedly rejected for his age.

“Ageism takes many forms,” says Marcus who has been riding for 62 years “without a single accident” and had been insured in the 1990s with Swann.

He phoned Swann’s parent company, IAG, who told him they had a “business rule” that no quotes were handled for ages over 75.

Marcus made several follow-up phone calls.

“Finally a junior manager entered my details manually. I didn’t win,” he says.

Marcus left a formal complaint and received a phone call from IAG’s lawyer who followed up with a letter stating that they felt the manual entry had covered Swann’s requirements in this case.

Human rights issue

Marcus Wigan harassment age
Marcus Wigan

Marcus then rang the Australian Human Rights Commission and asked if he had a valid age discrimination complaint.

“After a while I was asked by HRC to state what would resolve my complaint. I stated effectively exactly what IAG finally decided to enact,” he says.

Marcus received the following letter on April 1, although it is no joke!

Swann’s Guidelines and acceptance criteria will b e adjusted to accept quotations for motorcycle riders aged over 75 automatically, without any requirement for discretion. Further, Swann’s online systems rules and ratings will reflect the automatic acceptance of quotations for motorcycle ridders aged over 75. Swann will ensure that all relevant staff are aware of the updated acceptance rules. Whether cover is offered is otherwise subject to the usual underwriting criteria.

We contacted the Australian Financial Complaints Authority who advised that each insurer has their own underwriting criteria.

They refused to comment on this case.

Marcus says the Swann decision is a good model for the insurance industry to adopt.

“It is what I asked for, it’s perfectly sensible and allows normal underwriting analyses and decisions to continue without arbitrary age cutoffs as ‘business rules’,” he says.

Age restrictions on licencebeard age

There is no age restriction on motor vehicle licences.

However, each state does have certain restrictions on aged licence holders.

They may be required to carry a current medical certificate and have annual or biennial medical check-ups to assess their suitability to hold a licence.

They may also be restricted to the use of a vehicle within certain times and areas.

There is no distinction between licences for cars or motorcycles.

Click here for more specific details on aged licence restrictions.

Source: MotorbikeWriter.com

Motorcycle News, News

MCC NSW members offered free Wills

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No one likes to think of their mortality, especially vulnerable motorcycle riders, but the Motorcycle Council of NSW has organised free Wills for members.

Chairman Steve Pearce says they have negotiated the deal for all members through MCC NSW legal advisors, Robert Bryden Lawyers.

The service is on top of a recent Council offer of discounted national roadside assistance to all riders, whether they are a member or not.

It also comes as the council has launched a new-look website with a news feed link to Motorbike Writer as their trusted source of motorcycle news, views, reviews and lifestyle.

Will service

Wills
Rob Bryden

Rob Bryden says a professionally compiled will could cost anywhere from $600 to $900 depending on the complexity.  

“We are offering complimentary wills and they will be tailored to each person’s individual needs obviously — some may need more complex protection than others,” he says.

“It’s absolutely key every single person over 18 has a Will so that if the unforeseen happen (and let’s face it accidents happen every day) those that they care about are looked after.   

“If you don’t have an up-to-date Will, the control of the estate will not be in the hands of an executor and distributed according to the rider’s wishes and circumstances, but according to legislation controlled by the government.”

RBL have set up an online process so there is no need for a time-consuming face-to-face meeting.

Click here for the online form.

RBL will draft the Will according to the form and provide advice where required or wanted and then it is executed.

“A Will needs to be legal and undertaken with informed decisions and advice,” Rob says.

“We are offering this service free of charge to MCC NSW members in good faith and willingness to support.” 

Passionate advocate

wills
Rob with a KTM track car

Rob says he is a passionate advocate for road safety.

He drives and races cars on track regularly, lobbied when Government wanted to introduce the CTP changes and lobbies for better treatment of motorcyclists on roads.

Rob was also the NSW Senate Elect for Australian Motoring Enthusiast Party and was key in developing the NSW Learner Driver Program initiative. 

“There are obvious synergies between MCC NSW and Robert Bryden Lawyers so we hope to work together in common areas around road safety, CTP, etc,” he says.

Source: MotorbikeWriter.com

Motorcycle News, News

Riders offered roadside assist discount

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Riders all around Australia are being offered discount roadside assistance coverage thanks to the collaboration of the Motorcycle Council of NSW and Australian 24/7 Roadside Services.

The service is labelled Motorcycle Assist Australia, providing two levels of cover, a premium service for $99/year, normally $150, and a special basic $49 service.

Standard Assist $49/year

  • Australia Wide Coverage
  • Battery Replacement Service
  • Emergency Fuel
  • Flat Battery / Jump Starts
  • Flat Tyre
  • 25km Free Towing Metropolitan
  • 50km Free Towing Country
  • 2 Callouts Per Year
  • No Joining Fee

Premium Assist $99/year

  • Australia Wide Coverage
  • Ambulance Assistance
  • Breakdown Accommodation
  • Breakdown Car Hire
  • Battery Replacement Service
  • Free Emergency Fuel
  • Flat Battery / Jump Starts
  • Unlimited Callouts
  • Unlimited Towing Nearest Repairer
  • Unlimited Flat Tyres Nearest Repairer
  • Unlimited Km’s Nearest Repairer
  • No joining Fee

Open to all

Motorcycle Council of NSW chairman Steve Pearce says riders don’t need to be a member of the council to take advantage of the discount assistance coverage.

“You will be supporting the work of the MCCNSW which is a not-for-profit organisation, supporting motorcyclists dealing with state and federal government issues,” he says.

“Motorcycle Assist provides the best and most comprehensive roadside assistance in the country.

“Both groups know and support motorcycling, so it made great sense for us to work together and provide the best on road support possible for our members and motorcyclists Australia Wide, with great terms and condition and affordable pricing.

“Motorcycle roadside assistance needs to be simple, reliable and available wherever and whenever you decide to ride.”

Steve Pearce chairman of the Motorcycle Council of NSW Look for motorcyclists in Motorcycle Awareness Month roadside assist
Steve Pearce

Roadside aid

Motorcycle Assist Australia is part of the group Australian 24/7 Roadside Services Pty Ltd who provide roadside assistance to thousands of Swann Insurance customers Australia wide.

Roadside assist will aid riders in situations where their motorcycle is immobilised for any reasons such as a flat battery, flat tyre, running out of petrol or mechanical problems.

Once an account has been set up, customers can add and pay for extra motorcycles on the same account at any time.

Source: MotorbikeWriter.com

Motorcycle News, News

Dealing with unexpected motorcycle repairs

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(Sponsored post)

Unexpected repairs are the bane of a motorcyclist’s life. No, we’re not talking about changing your tyres or brakes. Those are maintenance costs that you should have planned for. What we’re talking about here is when your chain snaps or you find out that rust has formed on the inside of your old metal fuel tank (something riders of older bikes will be all too familiar with.)

If you’re lucky, this type of problem will be spotted before it becomes a major issue. Even so, when your mechanic tells you they found something wrong with your bike, all you can think of is how much the repair bill is going to be. Fortunately, there are ways to deal with these unwanted surprises, but our first piece of advice is all about being prepared.

Expect the unexpected

It’s a great piece of advice that most folks will offer after something bad has happened. ‘You should have planned for this,’ ‘you’ll be ready for it next time’; you know what we’re talking about. But as annoying as hearing such advice is, there’s a whole lot of truth in those words.

Ideally, you should have a rainy day fund where you save money in case of emergency. But we don’t want you to touch that. Instead, you should have a repairs fund set up somewhere. Use a cookie jar in the kitchen or an old bank account that you don’t use much. Whatever it is, you need to put a small amount in there every single time you get paid. It can be just a few dollars each time, but over the space of a year that fund will build up so when any emergency repairs are required, you have some cash to foot the bill.

Ask your mechanic about credit terms

Of course, your mechanic needs to pay his bills too, but he may be able to arrange credit with your parts supplier. This way you get new parts for your bike, and you only need to pay the mechanic for his labor costs. It’s not very often that parts suppliers will agree to this, but it’s worth asking about.

Put the repairs on credit

Credit cards are there for convenience, and yes, you guessed it, in times of emergencies. While it might hurt to put a thousand dollars on your card just like that, it’s worth it to get back on the road. But not everyone has a plastic “out of jail card”.

If you don’t have a credit card, you can always opt for a short term loan. The great thing about this option is that even if your credit score has taken a battering in recent years, it’s easy enough to get one approved. Yes, the interest rate is high but at least this way, you’re more likely to get rid of that bill as soon as possible. With a credit card, the temptation to pay the minimum each time is just too much.

Shop around

Look, we know it’s tough to leave your mechanic especially if they do great work, but there’s no harm in shopping around for a better deal. Get a price from your mechanic and then call around. It could be that the mechanic in the next town does great work but is a bit cheaper than your guy. It could be worth loading the bike up on a truck and driving a few miles out of town to get the work done cheaper. You may even find that you can get cheaper parts online but take care not to get scammed.

Whatever option you decide on, remember this; never cut corners when it comes to repairs. You can shop around for cheaper parts and look for a mechanic that doesn’t charge quite so much, but never compromise on your safety. Secondhand parts should be in good shape and preferably reconditioned while your mechanic should have a solid reputation for doing good work. Remember, while you want to save some money, it’s all about staying safe on the road.

(Photo by zedi10)

Source: MotorbikeWriter.com

News

4 Best Motorcycle Loan Options For Students

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(Sponsored loan article for our North American readers)

Today, motorcycles are more popular because of their fuel efficiency and the cost advantage. Kelley Blue Book estimates the average cost of a new car to be $US36,270. In comparison, you can bring home a new motorcycle for less than $5000.

Motorcycles are a cost-effective mode of transportation. However, securing a motorcycle loan can be more difficult than it appears at first glance and you may like to examine the financing options you have.

Motorcycle loans and auto loans

Even though purchasing of a motorcycle is not different from buying a car as far as the process is concerned, you need to look for financing alternatives available for a motorcycle loan. In most scenarios, you can’t avail an automobile loan to buy a motorcycle. Rather, you have to seek a loan that is specifically meant for motorcycles, or other categories of similar vehicles such as recreational or specialty vehicles.

Often, the terms for motorcycle loans are different from auto loans, especially in the repayment period and interest rates.

For example, you can get a car loan for a rate as low 3.09% from SunTrust as of April 6, 2018. But SunTrust puts motorcycles in the category of boats and motor homes and treats all of them as recreational vehicles. The lowest rate on which SunTrust can give you a motorcycle loan is 4.44%.

Loan options

Since motorcycle loan is a lot different from auto loan, it is not a bad idea to examine different financing possibilities to make sure that you get the best deal in the market.

No matter whether you are going to use your motorcycle for primary transportation purposes or for weekend joyrides, you can take out a loan to buy your motorcycle under four main financing choices.

1. Manufacturer financing

You can directly get a motorcycle loan from some manufacturers. For example, Harley-Davidson offers such loans in association with Eaglemark Savings Bank. Depending on your credit history and other factors, you can find a loan at a meager 3.99%. Chances are that you may not be required to pay even a down payment.

Here an important thing to bear in mind is that the manufacturers offer lowest rate loans on select models and under short-term repayment plan. If you are planning to buy a low-priced model or wish to choose a repayment plan longer than 36 months, you are likely to attract higher rates.

2. Dealership financing

You can also get the financing from the motorcycle dealership. Some of them offer loans under a special scheme with the manufacturers but they also partner with multiple lenders. Loans from these lenders usually are available at less stringent conditions than manufacturers, so chances are that you will qualify for a loan if you have poor credit.

However, it can be more expensive to avail a loan from the dealership than from other sources. There is a possibility that you might have to pay more in interest if you did not consider other options, for example, a credit union.

3. Credit union and bank loans

You can make some saving by taking out a loan on your own before visiting the dealership. Motorcycle loans are available at several banks and credit unions and they tend to charge lower rates than the dealerships.

If your credit score is low or don’t have an impressive credit history, seeking a loan from a credit union can be an intelligent option. Credit unions, unlike banks, are nonprofit financial entities and might offer loans on easy terms. You can visit MyCreditUnion.gov to locate a credit union near you if you are not already a member of one such organization.

4. Personal loans

You can also consider personal loan as one of the options to buy your motorcycle. Contingent on your income and history of financially responsible behavior, you could find a loan at rock bottom interest rate of 4.98%. If your credit is in excellent condition and if you can easily make monthly repayment, you will be able to save money by choosing a personal loan.

Even if if your credit isn’t all that great, chances are you will qualify for a personal loan more easily than a motorcycle loan. But if the credit standards are relaxed, personal loans can come at higher interest rates compared to other types of financing.

Also, personal loans are to be repaid in much shorter duration than motorcycle loans. A motorcycle loan can be repaid in up to 84 months while the repayment plan for personal loans is often limited to only 60 months.

Some lenders also give student loan for buying motorcycle. You should also check them out if you qualify for a loan in that category.

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Source: MotorbikeWriter.com

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What to Know About Warranty and Insurance for Your Motorcycle 

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Contributed post for our North American readers

Buying a motorcycle and hitting the open road is exciting. Filtering through different types of insurance and warranties? Not so much. 

Insurance costs money and doesn’t seem necessary – until you actually need it. The same can be said for additional levels of warranty to protect the bike. Once something goes wrong, you’ll be grateful for the extensive coverage that has you covered. 

If you are new to motorcycle insurance and warranties, you’ll need to learn a few things before settling on coverage. 

Yes, You Need It 

If you are debating whether insurance is worth the monthly payment, the answer is yes. 

Anyone who has been in some sort of accident will tell you just how useful the coverage is as soon as you need it. It is better to have insurance and not need it than to not have it and definitely need it. 

There are also legal requirements. Most states will mandate minimum levels of liability coverage before registering. Legally, you can face some heavy fines if you are discovered riding without insurance. 

So, bottom line, yes you need it. More importantly, you need good coverage. 

You May Already Have It 

For warranty, you may already have some coverage. New motorcycles will typically have basic warranty – some level of top to bottom coverage for a certain amount of time or mileage. This can cover some issues – but not all. 

Consider looking into extended warranty to cover more serious concerns for a longer period of time – like the reputable extended car warranty companies at Car Warranty Guru. Extended warranty is aftermarket warranty that extends beyond the manufacturer warranty. 

Go Above and Beyond 

For insurance, you can stop at minimum liability insurance, which meets state requirements and covers the other party when you are at fault. Most states have minimum coverage levels around $US25,000 of bodily injury coverage, about a total of $US50,000 per accident, and certain levels of property damage. 

Depending on where you live, those levels might not cover much. If you want to play on the safe side, opt for higher levels of coverage. 

If you are in a serious accident, you could find yourself filing bankruptcy after maxing out on the insurance coverage levels. Don’t be stuck paying someone else’s medical bills and keep yourself covered. 

Consider More 

So far, we’ve dived into just liability coverage. Comprehensive and collision coverage are other types of coverage that are equally important. 

Collision coverage kicks in when you damage another vehicle or cause damage to your bike. It can also help pay off any remaining loan balance. Comprehensive coverage is important when your bike is destroyed, disappears, or is damaged by something other than another vehicle. This can include theft, fire, and more. These two cover a lot more than liability, especially when you are fault in the accident. 

To be transparent, the cost of insurance for motorcycles, especially for younger people, can get quite high. If you are willing to make the commitment to being a motorcycle owner, expect to take the insurance hike that comes with it. 

Don’t Forget About Yourself 

In all of this worry about what happens to the other people in the accident, don’t forget about yourself. It is important to have insurance that will cover bodily damage to you as well. 

Medical payment coverage can help with broken arms and broken legs, as well as time away from work. Health insurance can only go so far, and sometimes it is not enough. 

Know What You Already Have 

When you buy a motorbike, it comes with lots of paperwork and confusing language, especially for someone new to all of it. As mentioned, you will have some level of warranty, sometimes from the dealership itself. Take the time to understand the language and know what is there to keep both you and the bike covered in times of need. 

Source: MotorbikeWriter.com

News

Three Effective Ways to Reduce Your Life Insurance Premium

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Contributed article

If you are single with no direct dependents such as children or other close relatives, then it won’t be as beneficial to get life insurance. But if you have a partner and children, then a life insurance policy is a good way to extend your love and care for them, at least financially, even after you’re gone.

We understand that getting life insurance is going to be an extra cost for you. A sizeable part of your monthly income will have to be given up to pay for the policy. But it doesn’t really have to be this way. There are things that you can do to lower your premium, and we will discuss some of them here.

Quit smoking

Paying a cheaper monthly premium for your life insurance policy is going to be beneficial in a lot of ways. For one, it will put you in a better position to purchase other insurance such as car insurance.

One sure way to lower the amount that you have to pay as premium is to stop smoking. According to a summary created by the US Department of Health and Human Services in 2014, smoking is the cause of at least 400,000 premature deaths in the country each year. It’s not difficult to see why this is so; it has been known that cigarette smoke contains at least 250 harmful chemicals, 69 of which have been linked to cancer.

You see, an insurance premium rises when the company senses by looking at your medical records that you are exposing yourself to situations that unwittingly increase the chances of you dying prematurely and them paying out to your beneficiary even before you’ve paid them a considerable amount of cash.

Lose weight

Being overweight – or worse, obese – does not only slow you down and make moving around a chore, it also predisposes you to different types of cancers. In overweight women who have been through menopause, for example, breast cancer is going to be their number 1 enemy. 

Excess fat in the body also makes it difficult for your body to resist the development of other chronic and probably fatal illnesses such as diabetes and heart disease. Given this knowledge, it is only normal for the insurer to anticipate your death quite early, and an increased premium is their way to also protect their business. If you strive for and actually achieve a certain level of fitness right before you apply for life insurance, the probability is high that your premium will be at its minimum.

Avoid traffic violations

Data from the National Highway Traffic Safety Administration show that more than 37,000 lives were lost in traffic mishaps in 2016. Many of the recorded accidents are caused by totally preventable factors such as intoxication and distracted driving. If you’ve been apprehended for drunk driving and texting while driving, for example, you are basically telling the insurer that you will soon join NHTSA’s statistics.

More than ensuring your safety on the road, following traffic rules enforced by the city government of Des Moines also helps pay less for your life and car insurance. If you’re involved in an accident, it can become really tricky to get your benefits if you don’t get the help of Des Moines auto insurance claims lawyers. You see, some insurance companies are hesitant to give payouts on car damage that is brought about by potentially ambiguous causes.

Source: MotorbikeWriter.com