Whatever reason you purchased your ATV for, working on your ranch or some outdoor entertainment or both! You would agree with us that ATVs are fun and a hefty investment too. Thus, God forbid, but if your dear ATV gets stolen or damaged in an accident, then you must have some security. And insurance is that security. With insurance, you can rest assured that your investment is safe, and this assurance is sure to make your ride a lot sweeter.
But there is a very common question that I have a homeowners’ policy. Do I still need ATV insurance?
If you too have this question, yes, my dear friend, you need an ATV insurance policy. A homeowners’ policy does not cover your ATV. So, if you come back from the market, open your garage to park your car only to find out that your ATV is missing, then that moment will be far more challenging if you did not have ATV insurance to back you.
Now that we know the importance of ATV insurance, let us know how it works, what it covers, and what it doesn’t.
How Does ATV Insurance Works?
An ATV insurance works essentially like any automobile insurance. The coverage provided is also similar to that of automobile insurance. You have liability, collision, comprehensive, uninsured, and underinsured coverages. A few additional coverages specific to ATVs are also provided.
These coverages protect your ATV in the case of theft, vandalism, severe weather, collision, etc.
And when you do need to file a claim, you need to give a call to your insurance agent, report him the scene, and provide any documentation, photos, or videos of the scene (if possible). Now the adjuster will review the details and decide your compensation. Your compensation is determined based on your limit and deductible, the damage caused, and the coverages you had.
What Does ATV Insurance Cover?
ATV Insurance policy can provide coverage for everything from the lights on your ATV to your medical bills and the medical bills of the person you hurt and even the legal fees of the attorney.
Thus here are all the coverages explained in detail.
#1: Bodily Injury Liability Coverage
If while driving your ATV, you collide with someone, resulting in the other person getting hurt. Then you will be held liable to pay for their medical bills and loss of income. Here bodily injury liability coverage comes as a blessing. It will pay the medical bills, the loss of income, and even the attorney’s legal fee in case of a lawsuit.
#2: Property Damage Liability Coverage
Taking the above example further, when you hit someone, the person is hurt, but their vehicle is also damaged.
Property damage liability coverage covers all such costs. It does not pay you for your losses but covers all the damage done to the property and vehicle of the person hurt because of you.
It is like bodily injury liability coverage covers legal fees in case of a lawsuit too.
#3: Medical Coverage
As we said above, liability coverages do not cover your injuries; therefore, there is medical coverage. The best part about medical coverage is that you do not have to pay the deductible and copays if you get injured, and you have this coverage. And this is precisely where medical coverage is better than your existing health insurance policy.
#4: Collision Coverage
So far, we know about the property and medical coverage of the other party and medical for self but not for own property. Collision coverage fills this void.
If you crash into someone or just roll over, collision coverage will pay for all the repair and even the replacement of your ATV.
Though there is a restriction that you can purchase collision coverage only if you have comprehensive.
#5: Comprehensive Coverage
Collisions are not the only source of damage to your dear ATV. Fire, theft, and vandalism are also potential threats to your ATV, and comprehensive coverage covers all such losses.
#6: Uninsured Coverage
Uninsured coverage is another optional coverage. It reimburses you if the person that crashes into you does not has liability insurance. In short, he cannot pay you for your losses. So, your uninsured coverage pays you.
It is always good to be extra cautious and have uninsured coverage. And the cherry on the top is that it comes cheap! If you are driving ATV on private property, where there are no chances of another driver hitting you, you can opt-out of this coverage.
#7: Underinsured Coverage
Underinsured coverage has a similar story as of uninsured. Only, underinsured means that the person who hit you does not has enough insurance to pay for all your expenses.
In such a case, you can claim the rest from your policy. And however, it is cheap but costs more than uninsured coverage.
#8: Other Endorsements
This coverage is for those who love to accessorize their ATVs. Say you have added a costly seat or a great stereo system. But now, if it is damaged, the insurance company will pay for the replacement or give you the fair market value of the damaged part you have covered.
Similarly, you can also insure the trailer used to haul the ATV. Though expensive, if you need it, you can go for it as well.
What Does ATV Insurance Not Cover?
Though you might feel everything is covered through the above coverages. But wait, there are a few things not covered by them.
- The general maintenance and wear-tear of your vehicle are not covered by insurance. You need to pay them out of your pocket.
- Any mechanical breakdowns are also out of the list.
- Coverage goes void if the damage occurs through situations like you were racing, and an accident occurred.
These and many other clauses are present in the exclusions section of your policy. Thus please read it before you sign the policy papers.
ATV Insurance is a must-have even if you are going to use it on your ranch. Say an accidental fire damages your vehicle. It will be a massive loss for sure. But at least if you have insurance, you can replace the ATV you were so fond of.
So, this was all about ATV insurance. We hope you liked the information provided. And if you have any questions or suggestions, drop them in the comments section. We are all ears and reply ASAP.