What is lay-up insurance?

Complete Guide to Lay-Up Insurance for Powersport Vehicles

Why This Question Matters for Colorado and Utah Residents

In Colorado and Utah, many powersport vehicle owners, including motorcycle, ATV, and snowmobile riders, face long storage periods due to seasonal weather, such as harsh winters or monsoon seasons. Understanding lay-up insurance is crucial because it offers a practical way to reduce insurance costs during these storage months without sacrificing essential protection.

• Seasonal Use is Common: In Northern Colorado and Utah, powersport vehicles are often used only part of the year, making full insurance year-round unnecessarily expensive.
• Risk of Theft and Weather Damage: Although vehicles are stored, threats like theft, vandalism, hail, or fire remain real risks that comprehensive coverage protects against.
• State Regulations and Insurer Rules: Colorado and Utah may have specific rules or endorsement requirements for lay-up coverage, so awareness is key to maintaining compliance.

What Most People Get Wrong

A common misconception is that suspending insurance during storage means no coverage at all. Many believe that if they arent riding, they can cancel everything and save money, but this exposes them to high costs if the vehicle is stolen or damaged.

Others assume collision coverage is still active during lay-up, leading to unexpected claim denials or premium charges. Full suspension of collision, but maintaining comprehensive, is the standard—and it varies by insurer.

The Complete Picture

Lay-up insurance, also called storage insurance, is a policy adjustment or endorsement designed specifically for vehicles not in use for extended periods. Rather than paying for full insurance all year, owners can "lay up" their coverage—suspending collision coverage that applies when the vehicle is driven and exposed to accident risk.

Comprehensive coverage remains active during lay-up to protect against theft, fire, vandalism, hail—a major risk in Colorado as Northern Colorado experiences 5
3 severe hail days annually causing 23% of comprehensive claims for powersport vehicles.

This careful balance allows owners to save significantly on premiums without leaving their vehicle vulnerable while it is parked or stored. Policies may limit certain other coverages during lay-up, so checking with your insurer is essential.

For example, a motorcycle stored in a Fort Collins garage over winter may reduce their collision coverage for six months, yet keep full comprehensive coverage to protect against the regions common hailstorms and the $200,000+ theft risk Northern Colorado faces annually for powersports.

Colorado and Utah residents should also be aware of state-specific insurance laws affecting coverage requirements, especially if vehicles are taken onto public lands where liability insurance is mandatory even during storage or trail use seasons.

By leveraging lay-up insurance strategically, powersport owners can make their insurance dollars go further while maintaining safety and compliance.

Making the Right Decision for Colorado and Utah Residents

Question 1: How often and when will you use your powersport vehicle?

Your usage pattern determines if lay-up insurance is a good fit. If you store your vehicle for multiple months during winter or off-season periods, lay-up coverage can save you money. Consider:

• Length of storage period and start/end months
• Are you using multiple vehicles with staggered seasons?

Question 2: What coverage do you need to maintain during storage?

It is critical to keep comprehensive coverage active to protect against theft, weather damage, and vandalism during storage. Collision can usually be suspended safely, but confirm with your insurer about other coverages such as roadside assistance or liability requirements that may still apply.

Question 3: What are the financial trade-offs between premium savings and risk exposure?

While lay-up reduces premiums by suspending collision, consider local risks like hail storms or theft hotspots (e.g., I-25 corridor in Northern Colorado). Weigh potential out-of-pocket costs for claims against the savings. FoCoIns advisors can help you analyze this balance for your unique situation.