We’ve all wondered if it is financially beneficial for us to cancel our motorcycle insurance policy during the winter months if we don't plan to ride. We've outlined the answer and it may surprise you!
There are many things to think about when deciding what is best for you in terms of your motorcycle insurance policy. You’ll no longer be confused when it comes to winter motorcycle insurance as we’ve outlined all the answers you’re looking for below.
Understanding Motorcycle Insurance in the Winter
What Happens if I Cancel it?
Your motorcycle insurance policy premium is calculated based on the riding season. Policies are for a one-year period, but the bulk of the payments are made during the riding season. You pay monthly installments towards the full price, but the riding season’s payments are larger than the winter season.
For example, if your policy totals $2,400 for the year, you won’t actually be paying $200 each month. Here is a sample chart that highlights how motorcycle insurance policy payments are calculated throughout the year:
*This is an example and IS NOT how every motorcycle insurance policy operates
Due to this distribution of payment amounts, we suggest you do not cancel your policy during the winter. But, if you sell your motorcycle and don’t plan on replacing it, we would then suggest you cancel your insurance policy since you will no longer have a motorcycle to insure.
Two Other Reasons Not to Cancel
- Lose discounts: If you cancel your policy during the year, you no longer have a continuous insurance policy and you could lose loyalty discounts.
- Gap in coverage: Cancelling a policy in the winter means you will have a gap in coverage; having a gap in insurance coverage could affect your star rating and ultimately, your overall premium.