Canceling your boat insurance may be an option, but it's not always the best choice. Depending on your contract with the insurance company, you may be able to cancel your policy at any time. However, this could lead to higher costs in the long run and may make it difficult to get insured again in the future. In many cases, once you cancel a policy, that company won't insure you again for a period of time.
Some companies require that your boat has been pre-insured before they will draft a policy, while others offer discounts for ships with more than 6 months of continuous coverage. Additionally, if you have financed your boat, most lenders require year-round coverage. When you cancel a policy for the winter months, you'll most likely pay more than you would if you kept the policy in place. If you've already paid for your insurance annually, most insurance companies will reimburse you for the unused portion of the money you paid. Some insurers charge fees or penalties for canceling insurance “in the medium term” (before the period of full coverage expires).
While it's recommended to keep your boat or bicycle insurance during the winter, it might make sense to cancel some parts of your coverage or increase deductibles to save money during periods of infrequent use. Some plans and companies will allow you to cancel only parts of your boat's insurance instead of canceling everything. If you cancel your insurance policy before the one-year contract ends, your insurance company will normally cancel your policy (short rate) and charge you a short-rate cancellation penalty. Any questions you have about canceling your insurance policy should be directed to the insurance broker or company that administers your policy. If you want to save money on your boat or motorcycle insurance in New Jersey, one thing you don't want to do is cancel coverage during the winter. Hal is a graduate of Rutgers University in New Brunswick, New Jersey, and has the professional designations of authorized property and accident insurer (CPCU), certified risk manager (CRM), certified insurance counselor (CIC) and accredited insurance advisor (AAI).
When looking for ways to save on boat or motorcycle insurance, start by consulting with an independent insurance agent. During the winter, storing your boat with care is one of the best things you can do, not only to save money on your insurance, but also to avoid costly repairs. Canceling boat insurance may be an option, but it's important to consider all factors before making a decision. Taking the time to review your policy thoroughly can help reduce off-season rates and ensure that unexpected incidents don't occur without anything helping you.