When you live in a place like Alberta or Saskatchewan and you own something like a motorcycle, boat, or snowmobile, you're probably not able to use it year-round. That’s where seasonally rated insurance comes in. Let's dive into how this type of insurance works and why it can be so cost-effective.
What Does "Seasonally Rated" Mean?
Seasonally rated insurance means that your insurance company takes into account that you won’t be using certain things, like your motorcycle or boat, all year round. They factor in that you'll be parking the vehicle for half the year into the price.
How Does Seasonal Rating Affect What You Pay on Insurance?
Generally, seasonal-rated vehicles are much more cost-effective to insure. For motorcycles, Alberta insurance companies know that most people only ride their motorcycles between May and October. As a result, they calculate the premium based on the understanding that the risk of something happening during the off-season is quite a bit lower.
In Alberta, the average cost to insure a motorcycle for a year is around $448.
By comparison, in the comparable insurance market of Ontario where motorcycles are not seasonally rated, you can expect to pay between $800-$3,500 annually (depending on your experience and driving record).
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Can You Put Seasonally Rated Vehicles on Parking Coverage?
The short answer is no, generally speaking, you cannot "park" a seasonally rated vehicle. The reason is simple: with seasonally rated insurance, the "off-season" is already included in your premium. This means you’re not paying for the time when your vehicle is parked.
If you’re paying your insurance monthly, the seasonality of the insurance risk is already factored into your policy. If you want to cancel your insurance policy at the end of the useful season, you’ll typically still need to pay out the remainder of the policy since the majority of the risk has already happened.
Examples of Vehicles with Seasonally Rated Insurance
- Motorcycles
- Boats
- Snowmobiles
Conclusion
Seasonally rated insurance ensures that your vehicles are properly covered during the busy season while still accounting for the fact that they won't be used year-round. If you're not sure if your vehicle is seasonally rated or not, talk to your insurance broker and they can help with the details.
If you're interested in a quote on recreational insurance, speak with one of our team members.
