Are you an owner of an ATV, snowmobile, jet ski or RV? Then you know the value of a good time. What is not so easily known is where to find the best insurance protection for your toys. Homeowners and Auto policies rarely cover both property and liability adequately for these types of vehicles. Therefore, in most cases, it is a best practice to procure a stand alone policy. A stand alone policy has the best safeguards in place to ensure proper coverage is in full effect. At a minimum, liability insurance is required in most states and relying on a Homeowners or Auto policy to provide the necessary coverage is a risky assumption that can lead to gaps in coverage (1). ATVs, RVs, jet skis and others are generally seen as a carveback on most policies. However, when specifically scheduled on an auto policy, ATVs are only covered for liability, not medical payments or physical damage and restrictions exist on who and what is covered. Another downfall is the increase in overall deductibles and elimination of liability coverage for other people (2).
Things to look out for on Homeowners and Auto policies are exclusions on motorized land vehicles and recreational vehicles. For example, some insurers have a very specific, all-encompassing definition for Recreational Motor Vehicles and corresponding exclusions which broadly exclude any loss including equipment, accessories or any electronic devices in or on the vehicle nor will it cover any defense costs. The only vehicles explicitly covered are those not subject to motor vehicle registration, vehicles used to service a residence or those designed to assist the handicapped (3).
The perks of obtaining a personalized policy include roadside assistance, towing and custom parts and equipment among a variety of other things (4). A tailored policy ensures that you will not pay premium on snowmobiles in the summer or jet skis in the winter. Having a policy dedicated to a particular risk is useful when an unforeseen claim arises. Having the proper insurance coverage in place will ensure that you will continue to have piece of mind while out having fun with your toys.
1 “ATV Insurance Requirements.” New York State Department of Motor Vehicles
2 “Think Toys to Enhance Retentions.” American Agent & Broker – Dec. 09
3 “Bodily Injury Arising Out of Professional Negligence” ChartisInsurance.com
4 “ATV Insurance Coverage.” Progressive.com
