What are the consequences of not paying motorcycle insurance?

2023-05-16 14:07:15

According to data from the Unespa employers’ association, in our country there are close to 33 million insured vehicles. Of these, around 3.5 million are motorcycles, whose owners usually pay the policy premium in a single payment or in installments. But what happens when it isn’t? The motorcycle insurance coverage remains, though do not pay to the insurance company?

WHAT HAPPENS IF THE ANNUAL MOTORCYCLE INSURANCE PREMIUM IS NOT PAID?

When contracting or renewing motorcycle insurance, the day and method of payment is established. However, whether due to lack of liquidity, change of bank account, forgetfulness or other reasons associated with the policyholder, sometimes said operation is not formalized.

From there, the Insurance Contract Law contemplates a series of situations. in relation to insurance paid annually:

• An entity may grant a period of 15 days for the client to pay the premium. Otherwise, it is enabled for terminate the contract or start one Judicial procedement in order to claim the payment –a case in which it is exempted from covering the policyholder–.
• From the second yearthe 15-day term to pay the premium is extended to one month – the so-called «grace month»–. Coverage is maintained during that period. But once finished, the latter ceases to be effective and the motorist is left without insurance.

WHAT IF A FRACTIONAL INSURANCE FEE IS NOT PAID?

As regards the fractional insuranceit should be known that the premium is considered a indivisible set –even if several payments are established–. If you choose this modality:

• A company could request the full insurance payment if the first installment is not paid. Otherwise, I would terminate the contract.
• if not paid any of the following deadlinesthe policyholder would have a grace month to catch up with payments. Otherwise, coverage would be suspended for five months.
• In that period there would be the possibility of satisfy the outstanding debt and enjoy coverage again in 24 hours. But not doing so would stop being covered definitively.

To prevent setbacks, experts in the insurance sector advise to be clear When is the insurance bill due?. and have sufficient balance in the bank account in order to prevent non-payment situations. Similarly, remember that those who do not wish to renew their motorcycle insurance have a month to notify the company.

MOTORCYCLE WITHOUT INSURANCE: PENALTIES AND OTHER EXPENSES TO TAKE INTO ACCOUNT

Likewise, the professionals consulted remember that it is not a good idea to be left without insurance. To begin with, because driving a motorcycle that is not insured entails a fine of 1,250 euros. In addition, its owner risks assuming the expenses derived from the immobilization, transfer and deposit vehicle.

And not only that. You are also in danger of facing a claim for thousands of euros if it causes damage to third parties. And depending on them, it could even meet imprisonment if he commits a criminal offence.

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