Why you should NOT Cancel Insurance on your Motorcycle, Boat or Golf Cart in the Off-Season

​A lot of vehicles only have seasonal use. This is particularly true for people that live in the northern states. People store their motorcycles, boats and golf carts in the winter, and snowmobile owners store their sleds in the summer. So while your vehicle is not being used in the off-season, there's no reason to keep insurance on it, right????


   WRONG!


 Many people decide to cancel their insurance policies on those vehicles in the off-season. However, there are some major downsides to doing that. This became very clear to me just this past Friday, when a friend that I went to school with had his motorcycle stolen....


 Just two days before Christmas, a thief broke into his garage, and stole his 2001 Harley-Davidson Road King classic.  This is a very nice bike! Here is a pic, in case any of you happen to see it riding around somewhere....

​My friend told me that prior to his bike being stolen, he had considered canceling his policy during the winter months. Thankfully, he decided that what little money he would've saved wouldn't be worth it. So he decided to continue his coverage for the entire year. This included the comprehensive coverage he was carrying, which is what covers vehicles in case of theft.


This is the question that owners of seasonal vehicles face. Should you keep coverage on vehicles that you're not currently using? What are the pros and cons as far as risk? How much do you save if you cancel coverage in the off-season? These are just some of the questions that go into the thought process of making that decision.


Two schools of thought:


1. Keep coverage the same for the entire year.
Pros:

• No worries about something happening to your vehicle while it's being stored in the off-season (assuming that you do have comprehensive coverage on the vehicle).
• Helps to earn future discounts with many companies due to having consistent prior insurance coverage.

Con:

• You're paying for coverage that you don't need during the off-season.

2. Cancel coverage completely during the off-season.
Pro:

• You're saving money by not paying for insurance that you don't need.

Cons:

• You're putting your vehicle at risk of any damage that would fall under Comprehensive coverage. This includes things like theft, fire, vandalism, etc.
• You may be preventing yourself from earning continuous coverage discounts from many companies.
• If any refunds are due back to you for paying in full, cancellation fees will probably offset a big chunk of that refund. For example, if you paid $500 for a full year for motorcycle insurance, and then cancel the policy after six months, you will not get the entire $250 pro-rated refund. It would likely be a little more or less than $200, depending on the company.

Great News: There is a better solution than the two options above!




Option 3: Adjusting coverage for the off-season


When your vehicle is stored in the off-season, Comprehensive coverage is the only coverage you need. So why not keep your policy active and simply drop or lower unneeded coverages?


The following coverages only apply during the in-season, when you're using the vehicle:

• Liability coverage - Most companies will not allow you to drop liability coverage completely. But you can reduce coverage by lowering down to state minimum limits.
• Medical Payments / PIP - Medical coverage can be dropped completely as long as your state doesn't require it. If your state does require coverage, you can still lower it down to state minimum levels.
• Uninsured/Underinsured motorist coverage - Can be dropped completely, or lowered to state minimum limits.
• Collision Coverage - Can be dropped completely, since no state requires collision coverage. However, there are a few insurance companies that won't allow collision coverage to be dropped without also dropping comprehensive coverage (you don't want to do that!).... In that case, you can still reduce collision coverage by raising the deductible to the highest level offered, and still keep comprehensive coverage the same.
• Roadside assistance - Can be dropped completely.

*** NOTE: Some of you may carry additional coverage on accessories. If so, you'll need to check with your insurance company about dropping collision coverage, and whether that affects accessory coverage.


Other points about the Adjusting Coverages option:

• It is very easy to adjust coverage. A simple phone call to your agent is all it takes. And it is just as easy to add coverage back on when the off-season ends, and you're ready to ride again. This keeps your policy active, and thus won't hurt your chances of receiving prior coverage discounts. You get the best of both pros, not exposing your vehicle to off-season risk, while also minimizing paying for unwanted coverage.

Summary:


    I hope this gives you a better idea of how to protect your toys during the months not being used, but still save you money by adjusting coverages that are not needed in the off-season.


   If you live in Ohio, Michigan, Indiana, Pennsylvania, Virginia or West Virginia, and would like an online quote on your toy, I would be happy to help you. Simply click on the link below that you would like a quote on. And as always, I handle all quotes personally and privately.




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