What is Collision Coverage?
Unless you want to pay out of pocket for damage done to your ATV in an accident, investing in collision coverage could save you some major headaches.
ATV insurance can be a pretty confusing topic…and it’s not exactly exciting reading. But properly insuring your ATV or UTV is not only the smart thing to do, but it’s also required if you ride on public trails in some areas.
When it comes to breaking down ATV insurance there are many different components to it – there’s collision, property damage, liability coverage, bodily injury liability coverage, comprehensive physical damage coverage… and that’s just the beginning.
In this article we are going to take a look at ATV collision coverage.
What Is ATV Collision Coverage?
Simply put, collision coverage is designed to take care of any collision damage that happens to your ATV or UTV. The damage could occur if you collide with another off-road vehicle, or even a car, trailer, or anything else on two or four wheels.
ATV collision coverage also comes in handy if you happen to crash into an object such as a telephone pole, fence or even a building. However, collision coverage only covers damage to your ATV or UTV. If you crash into a house or building, any damage to those structures falls on you. If you want coverage for repairing buildings from damage in an ATV or UTV crash, you will need a property damage policy – but that is a story for another article.
Why Do You Need ATV Collision Coverage?
Collision coverage is not an absolute necessity for ATV or UTV owners, but it could save you a whole lot of money in the long run. A newer UTV could cost more than $20,000 and if you are still making payments and you get in an accident, you could be out thousands of dollars in damages. Worse yet, if the damage is bad enough that the vehicle is a write off, that means you might be stuck paying for a vehicle that no longer exists for years to come if you don’t have enough cash on hand to cover the loss. We think it’s a lot easier (and cost effective) to pay for an ATV collision coverage policy.
How Much Should Your Deductible Be?
When talking about ATV collision coverage with your powersports broker, be sure to talk about the deductible. The deductible is the amount you choose to pay upfront (if any) before the ATV insurance policy pays. Just like with your car or truck insurance, the higher the deductible on your ATV collision coverage, the less you have to pay every month for your insurance bill. But a lower deductible means you pay less in the event of an accident.
Let’s say you decide to go with a $500 deductible and the repairs to your ATV or UTV are $1200. That means you have to pay $500 and your insurance company is on the hook for $700.
Since policies differ depending on where you live, talk to an expert who covers your state or province before deciding on the coverage that best suits your ATV needs.