If you are like most boat owners, you have insurance to protect your vessel in case of an accident or disaster. But what happens if you decide to cancel your policy? Will you be left without any coverage? Pregill Insurance Agency Inc. in Susanville, CA can help you navigate this important insurance coverage. Here we explore what happens if you cancel your boat insurance policy and the consequences that may come with it.
What Happens if You Cancel Your Boat Insurance Policy?
If you have a loan on your boat, the lender will likely require you to maintain coverage until the loan is paid off. If you cancel your policy, the lender could demand that you pay off the loan in full immediately.
Even if you don’t have a loan on your boat, there are still consequences for canceling your policy. If you cancel in the middle of the policy term, you will likely have to pay a cancellation fee. And if you decide to reinstate your policy, later on, you will likely have to pay a higher premium because you will be considered a high-risk customer.
How Do You Avoid Cancellation Fees?
If you are considering canceling your boat insurance policy, it’s important to contact your insurer first. Many insurers will allow you to suspend your coverage for a period of time if you plan on taking a break from boating. This can save you money and help you avoid cancellation fees.
How Do You Cancel Your Boat Insurance Policy?
If you decide to cancel your boat insurance policy, you’ll need to contact your insurer and request a cancellation form. Once you have completed the form, you’ll need to send it back to the insurer along with any required documentation. Make sure to keep a copy of the form for your records.
Contact Us Today
So, if you’re thinking about canceling your boat insurance policy, make sure you understand the potential risks and penalties involved. And as always, Pregill Insurance Agency Inc. in Susanville, CA is here to help – give us a call today.