Imagine this. It’s August, and you’re traveling home from your vacation.
You’ve been in the car for several hours and are so glad to pull into your driveway finally.
Pressing the garage door opener, you wait for the door to finally open so you can park your car and start unloading your bags and souvenirs.
As you pull in, something seems off. There’s a little more space than when you left for vacation.
Instantly it hits you. Your four-wheeler is missing. Your four-wheeler. The one you use to plow your driveway in the winter and tote your gardening supplies in the summer is gone.
Several years ago, this actually happened to one of our customers. Returning from vacation, he found his garage broken into and his King Ranch four-wheeler missing!
It was terrible!
And worse, my customer called in to file a claim for their ATV on their homeowner policy. And they were disappointed when I told them it wasn’t covered.
Most clients are surprised to find out that their ATV isn’t covered on their homeowner policy. They think that as long as they keep the vehicle in their garage or barn, they’re good. It’s covered.
But, this is not the case!
Your ATV needs its own insurance policy. Your homeowner policy will not cover it.
Without a policy, you are self-insuring your ATV. This means you will have to pay for any damage or to replace your ATV if something happens to it.
To better educate our clients on ATV insurance, I put together this article that touches on the basics. In the article, we’ll discuss:
- Are you required to carry ATV insurance?
- What does ATV Insurance cost?
- What coverages are on an ATV policy?
- What is not covered on an ATV policy?
- Which companies insure ATVs?
Are you required by law to purchase ATV coverage?
If you only drive your ATV on your property, you legally are not required to purchase ATV insurance according to Pennsylvania law.
If you drive your ATV anywhere else, you are required by law to carry coverage.
Also, if you have a loan on your ATV, your lending agent will require that you carry insurance for your vehicle.
What does ATV Insurance cost?
The cost of insurance for an ATV can vary widely!
I have seen policies for as low as $75/year and as much as $1,000/year.
The cost of your insurance policy will depend on three things.
- Specifics of your ATV
- Coverages and deductibles
- Insured drivers
1. Specifics of your ATV
When you apply for ATV insurance, your agent will need specific information about your ATV. Using these details, the insurance company will prepare a quote for your policy.
- Make, model, and year
Newer ATVs and more expensive ATVs will cost more to insure than older or less costly ATVs
- Engine size
The more powerful your ATV, the more you can expect to pay for insurance.
- ATV enhancements
If you have a small run-of-the-mill four-wheeler, the cost of an ATV policy will be considerably less than if you are insuring a utility vehicle with a hardtop, windshield, and front and rear doors. The fancier the equipment, the more you will pay to cover it.
2. Insurance coverages and deductibles
Similar to an auto insurance policy, all ATV policies include liability and medical coverage. You can also purchase additional coverages like comprehensive or collision, uninsured motorist, and underinsured motorist coverage.
The cost of your policy will depend on the various coverages you add to your policy, your limit amounts, and your deductible amounts. Your agent can help you determine adequate limits for the various coverages.
They can also tell you how various deductibles will impact your premium. Keep in mind, the lower the deductible, the more expensive your policy.
3. Insured drivers
On your policy, you will need to list everyone who will regularly drive your ATV, including minors. If you have minors on your policy, it will cost more.
Also, the more drivers listed on your policy, the more it will cost.
What is covered on an ATV policy?
As I mentioned in the previous section, a bare minimum ATV policy will only have liability coverage.
In total, your policy can include:
- Medical Coverage
- Uninsured or underinsured driver
- Other endorsements
As with auto insurance, your ATV policy includes liability coverage. This protects you if you accidentally injure someone or damage property while using your ATV.
For most policies, liability coverage costs as little as $25 and can quickly go up to over $150.
Liability coverage has two parts: bodily injury and property damage.
Bodily injury will typically provide up to $100,000 per person injured due to your ATV with a $300,000 limit per accident.
The amount that your insurance will cover will depend on the limits you set when you purchase your policy. You can choose limits that are less than $100,000 or more than that amount.
If you damage someone else’s property while driving your ATV, your policy will have coverage for those damages. A policy will often pay up to $100,000 for property damage per accident and up to $300,000 per accident.
Again, the amount that your insurance will cover is determined at the time you purchase your policy. Your agent should guide you in terms of how much coverage you need.
Adding medical coverage to your policy will give you additional protection if you are hurt while driving your ATV. Rather than relying on your personal health insurance for injuries you sustain, your ATV policy can include coverage for those expenses.
Adding medical coverage to your policy is relatively inexpensive. You can expect to pay between $30 and $75 for this coverage.
In terms of limits, your policy can cover between $1,000 up to $25,000 in medical expenses. If you are injured, you won’t have to pay a deductible or a copay with this coverage.
Comprehensive coverage will cover your ATV if it is damaged by fire or vandalism. It will also provide coverage if your ATV is stolen.
Adding comprehensive coverage will cost between $75 and $180.
In terms of your limits, you can set your deductibles at the following amounts at $250, $500, or $1,000.
Collision coverage will provide coverage if you hit something with your ATV – like another ATV or even a stationary object. If you wreck your ATV or roll it over, your collision coverage will kick in and provide money for repairs and possibly even for the replacement of your ATV.
You can only add collision coverage if you purchase comprehensive coverage.
Actual Cash Value vs. Replacement Cost
If you total your ATV and have collision coverage, your insurance will either pay out the actual cash value of your ATV or the replacement cost. This is important to understand before buying your policy.
With actual cash value, your policy will pay out what your ATV was worth at the time that it was totaled. Actual cash value accounts for depreciation.
With replacement cost, your policy will pay out what it would cost to replace your ATV with another recreational vehicle comparable to yours.
Policies that pay out the replacement cost will be more expensive than policies that pay out the actual cash value.
Cost of Collision Coverage
Collision coverage is the most expensive coverage you can add to your policy. This coverage will cost more than $200 and can end up costing over $1,000 depending on the type of ATV you are insuring.
Collision limits are often set at total loss, which means that the insurance company will pay for the replacement cost or actual cash value of the vehicle.
Two additional coverages you can purchase on your policy are uninsured or underinsured driver coverage.
Uninsured driver coverage will protect you if your ATV is hit by another vehicle whose driver does not carry insurance.
If you or someone else on your ATV is injured, the other driver will not have coverage for any medical expenses. That means that you or your passenger will have to cover your own medical expenses.
Uninsured driver coverage can cost as little as $10 on your policy. The limits on your policy can be as low as $15,000 per person with a total of $30,000 per accident. Or you can set this as high as $100,000 per person with a total of $300,000.
Because many ATV owners only use their vehicle recreationally on private land and aren’t likely to be injured by another driver, they opt out of this coverage.
Underinsured driver coverage is similar. The only difference is that the driver who hit your ATV does have some insurance coverage – just not enough to cover all of the medical expenses you incur due to an accident.
Underinsured driver coverage is a little more expensive than uninsured driver coverage. You can add this coverage for around $20. The limits will be similar to uninsured driver coverage – up to $100,000 per person up to $300,000 per accident.
Just like you can buy an ATV with extra bells and whistles, you can add extra coverages to your policy if you need them.
For instance, insurance companies will have endorsements that can be added to an ATV policy to cover the trailer used to haul the ATV. Adding coverage for your trailer is very inexpensive.
You can also add endorsements for special features on your ATV. If you have added an expensive stereo system, for example, you may want extra coverage for that system. Other custom parts and equipment can be added to your policy to ensure coverage if something happens to your ATV.
What is not covered by ATV insurance?
ATV insurance will not cover general wear and tear on your vehicle. You will have to pay for regular maintenance of your vehicle.
Your policy will not cover any mechanical breakdowns.
Your policy may also have some limitations to what it will cover depending on how you were using your ATV. For instance, some policies will not cover bodily injury or physical damage if you were racing your vehicle when the accident occurred.
Your policy will clearly outline what is not covered in the exclusions section of your policy.
Which insurance companies sell ATV insurance?
Many insurance companies sell ATV insurance. Although many insurance companies are very specific about what kinds of ATVs they will insure.
For instance, it is nearly impossible to find insurance coverage for three-wheelers, six-wheelers, or eight-wheelers. Insurance companies may also refuse coverage for ATVs with less than 150cc’s.
As an independent agent, we have access to multiple companies that write this coverage. At Baily Insurance, we rely on Progressive, SafeCo., and Foremost for ATV coverage. These companies have very competitive pricing and offer excellent coverage for our clients.
The biggest benefit of using an independent agent for ATV coverage is their ability to price out your policy with multiple companies and help you find the most competitive quote.
I need ATV insurance. What do I need to do next?
If you have an ATV and don’t currently have an insurance policy for it, you are self-insuring your vehicle.
Just a reminder here that your homeowner policy will not cover your ATV if something happens to it while it is parked in your garage, on your property, or in a shed or utility building. If it is lost due to fire or stolen, you will not be compensated for your loss.
It’s incredibly simple to get this coverage in place. To begin the process, simply give us a call and share with us the specifics about your ATV and information about who will be driving it. We will also need an idea of which coverages you want to be added to your policy.
You can also start the process by visiting our Get a Quote page. Let us know what you’re looking for and we’ll get back to you ASAP.
After connecting with us, we will quote out your policy with multiple companies and report back with your options.
At Baily Insurance, our team is dedicated to getting the best coverage for our clients at the best price.
Since 1880, we have been protecting the things that matter most to our clients – their families, their homes, their businesses, and the things they’ve worked hard for!
Let us know today how we can help you make sure those things that matter most to you are protected!