Old Man Winter is definitely here. Christmas lights are twinkling and if you own a snowmobile, you’re already counting the days until there’s enough of the white stuff to hit the trails. On the other hand, if you own a motorcycle, you’ve already parked it for the season and like some people, you may be considering cancelling your seasonal insurance policy in order to save some money.
Before you pick up the phone to talk to your broker, here are three things to consider about your seasonal vehicle insurance policy.
- Seasonal Insurance isn’t really seasonal. While your motorcycle or snowmobile insurance varies from winter to summer, your policy is still in force year-round. This leads to a lot of confusion and many of our clients ask us why they should still be paying for coverage when their vehicles are in storage.
- Your insurance actually costs more some months than others. Insurance companies calculate your insurance premium based on the months you’re likely to be riding your motorcycle or snowmobile. For example, your risk of filing a claim on your motorcycle insurance goes up during the warmer months when you’re riding your bike regularly. Therefore, if your motorcycle insurance premium is $1500 per year, the bulk of that premium is assigned to the months that you ride. If you decide to cancel your policy when you park your bike for the winter months, your insurance company will look at how much you’ve paid vs. the value of the coverage that you received over the warmer months. In the end, you aren’t likely to save very much since the value of the insurance policy over the winter months is considerably lower. This leads us to the third point.
- You’re at risk all year round. Even though your motorcycle or snowmobile is stored away during the off-season, there are still risks involved in not having insurance coverage. If the roof of your garage collapses on your vehicle when it’s in storage and you don’t have comprehensive insurance, you’ll be forced to pay for all the damage yourself. The same applies to theft, fire or weather damage that could occur while you aren’t using your vehicle. Comprehensive coverage is designed to protect your motorcycle or snowmobile from these kinds of perils and can be added to your seasonal vehicle insurance policy. However, comprehensive coverage is usually not available as stand-alone insurance.
Of course if you cancel your insurance while your vehicle is in storage, you won’t be able to take it for a ride if the weather suddenly becomes unseasonably warm, or if it snows much sooner than expected. Protect your seasonal vehicle year round and relax knowing you’re covered.