Think twice before cancelling insurance

Cancelling boat insurance after the season may not save you money

Published online: Sep 13, 2007 News
"You'd be shocked at the number of claims that are filed in the colder weather months when boats are out of the water," said Dominic Mediate, boat product manager, Progressive. "From 2003 to 2006, nearly two out of every ten Progressive boat claims filed in the northern states from Minnesota to Maine were filed after Labor Day and before Memorial Day. This shows that even when boats are out of the water, the wake may still be rough."
While many boaters may be able to justify dropping collision coverage-which pays for damages in the event of an accident that would generally occur only when the boat's in the water-in the off-season, other situations come up that can cause thousands of dollars in damages that, without the proper coverage, boaters would have to pay for out of their own pockets. 
The majority of boat claims are for fire, theft, vandalism and flooding, which can occur not just in the summer months, but year-round. And without comprehensive coverage-which pays for damage caused by circumstances other than a boat collision-boats damaged or destroyed by these events would not be covered by the insurance company. 
Some boaters may not realize that they could also be held responsible for any injuries that occur on or around their boats-even if the injured person was there illegally. Without liability coverage, which pays for injuries to other people or damage to their property if you cause an accident, you, and not your insurer, could be legally responsible for damages or the injured parties' medical bills. 
These examples show why it's a good idea to keep your coverage even in the off-season, not only for the things that can happen during that time, but also because keeping a policy year-round may mean extra savings that can really add up over time.
Progressive's Disappearing Deductibles, for example, reduces the selected Comprehensive and Collision deductible 25 percent for every claim-free policy period. The deductible is the amount you are required to pay before your insurance company starts picking up the tab. 
"Simply put, if you go four policy periods in a row without having a claim, you'll then have no deductible, meaning no out-of-pocket expense if you do need to file a claim," said Mediate. "If you cancel your policy, though, you'll lose your reduced deductible and will be responsible for the entire amount. Our customers typically choose either $500 or $1,000 deductibles, so Disappearing Deductibles can mean real savings." 
Disappearing Deductible is just one example of the types of unique benefits available only through specialty boat insurers. Another is Progressive's Total Loss Replacement, a coverage that is only available one time for new boats, so if a customer with this coverage cancels their policy they wouldn't be eligible for it again next season. That's why it's a good idea for boaters to check their policies before canceling and, once they have all the information, weigh the pros and cons before making a decision. 
"If you cancel your boat insurance in the off-season, not only are you gambling that nothing bad's going to happen, you're also missing out on the potential savings and benefits you can get only if you keep the policy going year-round," said Mediate. 
For more information on Progressive Boat insurance, please visit
http://watercraft.progressive.com.

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