By: Katarina Knoff
When planning your budget for the year, the thought might occur to cancel your boat, motorcycle, ATV or RV insurance during their off-season to save money. However, this can end up costing much more in the long run. Maintaining your coverage year-round protects you from having to pay for expensive repairs and higher renewal premiums when the summer rolls around.
Many people think that damage to these summer toys only occurs during their use, but there are plenty of ways they can be damaged when in storage. Let’s review some of the claims that could arise during off-season times, and why staying insured year-round is actually more budget-friendly.
Examples of Claims that Could Occur to Summer Toys While Stored in the Off-Season:
- While the RV or boat is stored at an off-season storage facility, someone backs into it and doesn’t leave their information.
- Someone breaks into your garage and steals your motorcycle or boat.
- Kids find the motorcycle in the garage and think it would be fun to play, but it falls on one of them and breaks his leg.
- The garage catches fire, and your boat or motorcycle inside is damaged.
- A summer storm knocks over a tree, and it falls on top of your parked RV.
It is a widespread misconception that just because something is being stored in your garage that it is covered under homeowner’s insurance. While this is true for many personal belongings, it is common for homeowner insurance plans to exclude coverage for motorized vehicles, which include motorcycles, ATVs and boats.
How Staying Insured Year-Round Can Result in Saving Money:
Depending on where you live, most insurance carriers consider how much you will be able to use your toy and adjust the cost of the annual rate to represent that. For example, in Colorado, where you could only use your boat for five or six months of the year, your price would be lower than it would be in California for the year.
When getting a new policy, insurance carriers consider if you have had consistent coverage. If there has been a lapse in coverage as a result of canceling your policy for the off-season, the insurance carriers will often charge a higher premium then they would have if the original policy had been kept in place.