Why You Want To Keep Your Motorcycle Insurance All Year Round
If you’re thinking of cancelling your motorcycle insurance, here are several good reasons to reconsider.
The weather has changed and it’s cold and snowy, so cancelling your motorcycle insurance is on your mind. You’re going to park your motorcycle in the garage or have arranged for storage somewhere, or maybe you’re just thinking about putting it up on the kickstand in your driveway and covering it with a tarp.
You think, “If I’m not going to ride it, why insure it”, but beware, there are quite a few reasons why you need to keep your insurance active and avoid problems down the road.
- Motorcycle insurance is pro-rated over the year, and by the time you want to cancel the insurance, there’s nothing left to return to you.
- A re-write fee is applied – If you cancel your insurance, and then renew in the spring, there’s a re-write fee applied as you were not previously insured
- The bike isn’t protected while in storage – If you cancel your insurance, your bike isn’t protected against fire, theft or any other peril while it’s in storage.
- Continuously insured bike policies get cheaper each year – By keeping your insurance, you build your insurance history and your rates can start to decline year by year.
#1 – Motorcycle Insurance is Pro-Rated Over the Year
For one thing, your insurance premium is spread out over the year for your budgeting convenience, but technically it is pro-rated against what is referred to as the “regular riding season”.
60% of Riding is in the Summer Months
In our part of the world, most of a motorcyclist’s riding is done in June, July and August, which is why those months earn about 60% of the total premium.
30% of Riding is Spring & Fall
In the Spring and Fall months of April, May and September, another 10% each, and an additional 5% each for March and October.
0% of Riding Happens in the Winter
All the remaining months, November, December, January and February, have 0% prorated premium.
Basically, cancelling your insurance won’t save you anything substantial from your premium.
#2 – When you Cancel and then Renew Again – Your Rates go up
Of course, cancelling your motorcycle insurance may be cause for a broker or insurer to charge you a rewrite fee, and it will show up on your insurance history record, accessible by all brokerages and insurance companies.
Continually cancelling and re-insuring the same vehicle is a red flag.
Not that anyone wants to be punitive, but there is the cost of administering policies and the paperwork required to cancel and then write a new policy, very much an incentive to keep costs down.
Everyone wants to have lower premiums, so minimal returns for a cancelled policy and a high cost for the administration of the processes does not help this cause at all.
If you want to save money on your motorcycle insurance, keeping it, and keeping it for multiple years, results in the possibility of lower and lower premiums as the years go on.
By keeping your bike insured, you create a history that insurance companies like to see.
#3 – No Insurance Means Your Bike Isn’t Covered While in Storage
What about that bike, stored away for the Winter, be it in your garage or driveway, or storage warehouse?
Many people mistakenly think a motorcycle parked in a garage is covered by home insurance and this is not true.
The potential for issues arising from perils such as fire, vandalism and theft is still there and no insurance is no insurance.
A parked or stored bike still needs proper coverage.
Great Weather? Go for a Ride
And let’s not forget, there are always going to be occasions in the non-riding season to ride.
How great would it be to roll the bike out of your garage and go for a cruise on a nice early Spring day? Having year-round insurance protects you and your treasured ride in those instances.
We Want You to Save Money
Certainly, we appreciate everyone’s interest in keeping their money in their own pockets and we have suggestions on just how that can be done in a way that not only protects you and all you own with excellent coverage but also saves you money. Be sure to speak to a BlueCircle Customer Account Manager for our expert advice and quality service.
Check out our other winter-related blog posts for your motorcycle, The Rider Workshop | Winterizing Your Motorcycle for more information about storing your bike in the offseason.