Most recreational boats end up docked or stored as the air grows colder and the waters turn frigid, boat owners joining their friends and family to curl up indoors by the fire or head to the mountains for a hike. So, is there a purpose of keeping insurance on a boat that isn’t being used? Wouldn’t it be cheaper to cancel your policy and purchase it again in the spring and summer?

Unfortunately, this can be the more expensive option. 

Each time you cancel a policy or have a lapse in coverage, boat insurance premiums tend to be higher the next time you search for a policy. Not only that, but insurance rates in general tend to change year to year. If you cancel your policy in the fall and go to purchase another policy next spring, you could be paying twice as much as you were before for the same boat. 

Dangers to Your Boat When Docked 

Keep in mind that your boat can still be damaged or lost even while it’s not being used. If you keep it docked or in storage, you should be conscious of natural disasters possibly damaging or even destroying your boat. Theft is also a concern, whether your boat is in storage or in your own garage. Home insurance only covers a limited amount of insurance for boats, so it’s important to make sure your boat has the insurance it needs. 

When Should You Cancel Your Boat Insurance Policy? 

You aren’t trapped within your boat insurance policy. You have the option to cancel any time for whatever reason. Generally, it’s recommended that you don’t cancel policies too often otherwise you risk high premium rates and, eventually, trouble finding an insurer. 

You should still review your boat insurance policy every six months to a year, however, to be sure that you aren’t paying too much for insurance. You can often save money by bundling your boat insurance with the same provider as your home and auto insurance policies. Ask your insurance agent about discounts you may qualify for in order to save money on boat insurance, especially when the boat isn’t being used. 

Whenever you do change or cancel your policy, make sure to communicate with your insurance agent and guarantee everything is taken care of before canceling your policy or changing coverage plans.