As you prepare to move your seasonal ‘toys’, including your motorcycle, boat or recreational vehicle (RV), into storage over the winter, what should you do with your insurance?
Cancelling the insurance is unlikely to save you money
Cancelling your insurance in the off-season does not necessarily mean you will save money. Insurance premiums on seasonal vehicles such as motorcycles, boats, RVs, and all-terrain vehicles (ATVs) are adjusted for seasonal use. This means that the premium you pay for insurance is based on the time frame you would normally use a seasonal vehicle; however your coverage is year-round. Before making any changes to your policy or to learn more about the payment and policy details, be sure to check with a BrokerLink insurance advisor.
Protection while in storage
It’s important to have year-round coverage because anything could happen to these items in storage, such as vandalism, theft, fire or potential damage from weather-related storms.
This also means you don’t have to remember to call us to add coverage if the season changes and you decide to use your stored vehicle. Make sure you speak to your BrokerLink advisor to ensure you have adequate coverage.
If your coverage was cancelled and someone was injured on your property, you would be responsible for their medical expenses. If your property damages someone else’s property, you would have to pay the full repair costs.
Build your history of insurance
Another reason to keep your insurance is demonstrating you have continuous coverage over extended periods of time without a lapse. This helps you build and maintain a history of insurance. Without proving prior insurance or having a record of your claims status, your future ability to get insurance or to get the best rates possible may be affected.
Premiums may be paid in full or in six instalments
Motorcycle insurance policies may require you to pay the full premium upfront or in 6 instalments. You may also have the option of monthly payments, contact your BrokerLink advisor to discuss the different payment options available. Insurance for vehicles that are seasonally rated take into account that your vehicle is not used for part of the year.
Suppose your motorcycle insurance costs $1,200 a year, effective April 1, 2012. Your payments could be spread out across six months at $200 per month. If you only ride until September 30, 2012 and then decide to cancel, you will have paid the full price of a yearly policy and will not receive a refund for cancelling.
To help reduce your insurance costs on seasonal toys, consider the following:
- Check with your existing auto insurance carrier for discounts – you may qualify for additional discounts on your seasonal vehicle(s) if you already have car insurance.
- Increase your deductible – by raising your deductible (the amount you would pay in the event of claim), you may reduce your insurance premium.
- Consider the type of seasonal vehicle that costs less to insure – depending on the model or make of your boat, ATV, or bike, additional costs may apply to your insurance premium, especially if these items are more likely to be stolen.
- Consider installing an anti-theft device – you may qualify for additional discounts.
- Safety first – always be sure to operate your seasonal ‘toys’ in a safe manner and obey all rules. Not only does this provide you with a great experience but by having fewer traffic tickets and accidents, your insurance premiums will not increase as a result.
To learn more about your insurance on seasonal toys during the winter months, be sure to speak with a BrokerLink insurance advisor. Until next season…