What is lay-up insurance?

Reduced coverage during storage periods, maintaining comprehensive coverage while suspending collision.

Lay-up insurance, also known as storage insurance, is a type of insurance plan designed for vehicles that will not be used for a significant period, such as during the winter months. This coverage allows the owner to pause the more costly portions of their insurance, like the collision coverage, which protects against damage from accidents when driving. Meanwhile, it maintains comprehensive coverage, which protects against non-collision related events like theft, fire, vandalism, or other disasters that could occur while the vehicle is stored. This type of insurance is particularly beneficial for owners of powersport vehicles, like motorcycles, ATVs, or snowmobiles, which are often used seasonally. The primary benefit is cost savings, as it reduces the insurance premiums while still offering sufficient protection against various risks when the vehicle is parked or in storage.

Imagine you own a motorcycle, and you live in a region where winter is too harsh for riding. Once the cold sets in, you decide to store your bike in the garage until spring returns. Instead of paying for full insurance coverage over several months when you're not riding, you opt for lay-up insurance. This ensures that you’re still protected against risks like theft or fire while saving money by not paying for collision coverage, which you wouldn’t need since the bike isn’t on the road.

If you plan on storing your powersport vehicle for an extended period, look into lay-up insurance as a cost-effective solution. Before switching, confirm with your insurer that this type of coverage applies in your situation and aligns with state regulations. Remember, comprehensive coverage remains crucial to protect your vehicle against damage or loss from incidents other than collisions, so always keep that part of your policy active during the storage period. Evaluate your insurance options typically at the end or start of your riding season to maximize savings and ensure your vehicle is adequately protected when needed.