GEICO says year-round motorcycle coverage makes good financial sense
WASHINGTON, D.C., October 21, 2015 – The drop in temperature and the falling leaves are a sure sign that it's time to put your motorcycle in storage for the winter. This time of the year, you might be thinking about saving a few dollars by cancelling your motorcycle insurance and renewing it in the spring. Saving a few bucks always sounds tempting, but not having insurance for your bike may be a risky solution in the long run.
"Even if you don't ride during the winter months, your bike still faces potential risks while in storage," said Steve Stojanovich, director of GEICO's motorcycle/RV division. "If you cancel your insurance and something happens to your bike (theft, fire and vandalism), you are financially responsible for all of the damages or the repair costs. In this regard, it makes good financial sense to keep your motorcycle insured all year long."
In many parts of the country, motorcycle riding is a seasonal activity. If paying motorcycle insurance for an idle bike doesn't seem like an ideal situation, there are an abundance of options available for motorcycle owners.
Stojanovich states that some insurance carriers offer a "lay-up" policy, which temporarily suspends all but the comprehensive coverage on your motorcycle insurance during the off season. Comprehensive coverage protects against a non-collision event (theft, fire and vandalism) that might occur while the bike is in storage.
Depending on the carrier and policy, you may be eligible for an adjusted payment plan. The premium payments are adjusted and paid during the prime riding season of March through October and suspended during the winter months. Carriers also offer a reduction of policy coverages while your bike is in storage and the option of raising your deductible which would also lower your premium.
"Some carriers will penalize you for a lapse in coverage," said Stojanovich. "If you cancel your coverage and want to reinstate it at a later date, you may need to prove that you had prior insurance. It's better when you can demonstrate that you have insurance continuously for a certain period of time."
GEICO (Government Employees Insurance Company), the second-largest auto insurer in the U.S., was founded in 1936 and insures more than 27 million vehicles.
To make changes, report claims, print insurance cards and purchase additional products, policyholders can log into their car insurance policy, connect via GEICO Mobile, phone or by visiting a GEICO local agent.
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