In an effort to save money whenever possible, a motorcyclist may wonder whether it makes sense to cancel Motorcycle Insurance Service in Monroe MI in the winter. After all, this person is only riding the bike for about seven or eight months of the year, depending on how soon cold weather arrives and how long it stays that way. Does it make sense to cancel and restart coverage this way?
Keeping Comprehensive Coverage
One question to ask is whether the Motorcycle Insurance Service in Monroe MI allows a policyholder to keep comprehensive coverage while dropping liability coverage. Liability insurance is required by state law for vehicles on the road, but it shouldn’t be necessary if the bike is being stored. Comprehensive insurance covers damage caused by situations such as vandalism and severe storms, and it also typically covers loss from theft.
Layup and Seasonal Policies
Some insurers have a special provision called a layup policy intended for this purpose. Others have seasonal ratings that reduce premiums in the wintertime. Of course, if the owner is willing to forego comprehensive coverage during this time, then canceling liability and collision is OK.
Cancellation must be done by notifying the agent. Not paying the bill is not an acceptable method of a policyholder canceling the insurance, although the insurance company will eventually cancel the policy for nonpayment. However, this behavior could lead to collections activity and the nonpayment being reported to a credit agency or other bureau. The person might have trouble being approved for motorcycle insurance in spring without paying extra.
Raising the Deductible
Another way of saving money with an agency like the Insurance Center Of Monroe is to ask the agent to raise the deductible significantly while the bike is not in use. That will make the premium substantially lower. When it’s time to get the motorcycle back on the road, a call to the agent can lower the deductible again if the owner so chooses. It’s important to select a deductible that the person can afford to pay if any damage ever does occur to the vehicle that the owner is responsible for.
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