Types of Off-Road Vehicle Insurance

 

If you own any type of off-road vehicle, whether it's an ATV, dune buggy, dirt bike, snow mobile or golf cart, be aware that your standard homeowner's insurance likely provides you with little or no protection against it being damaged or destroyed.  This is especially true since your off-road vehicle is taken off your property.

North Carolina State Law

In the State of North Carolina, insurance is required on all registered motor vehicles.

Laws governing ATVs are similar to the laws governing motorcycles.  This means that all registered ATVs are required to carry at least a minimum amount of liability coverage, both bodily injury protection and property damage liability.  The minimums are the same as they are for motorcycles and cars:

• $30K per person/accident bodily injury liability
• $60K for all persons per accident
• $25K per accident in property damage liability

Even if your vehicle is not registered because it's not used on public roads (which is illegal anyway) or public lands, having liability protection is important to have in case you're involved in an accident that's deemed your fault.  You'll be held financially responsible if you cause any property damage or injuries while using your vehicle.  Without insurance, the cost of these damages will have to come out of your own pocket.  If your off-road vehicle is registered, you'll also be required to carry insurance for uninsured/underinsured drivers.

Off-Road Vehicle Insurance

Even if your off-road vehicle isn't registered and you're not required to have insurance by law, obtaining coverage for your own protection and peace of mind is still a smart move.  There are four types of coverage that go into making of an off-road vehicle insurance policy.  These include:

1. Bodily Injury Liability - pays toward medical costs of parties injured in an accident you cause.
2. Property Damage Liability - pays toward the repair/replacement of property owned by a third party damaged or destroyed in an accident you cause.
3. Collision Coverage - helps pay toward the cost of repairing/replacing your ATV if damaged in a collision with another vehicle, a tree, a fence, etc.
4. Comprehensive Coverage - helps pay to repair/replace your off-road vehicle if it's damaged in ways other than in a collision.  This may include damage caused by weather (such as a hail storm), fire, vandalism or if your off-road vehicle is stolen.

Full protection is the safest option.  You should read and understand your policy completely.