This coverage may seem fairly obvious given the name. Collision coverage is there to help cover the damages to your ATV in an accident involving collision or upset, regardless of fault and regardless if the other party has insurance. There are a few situations that may seem like they should be covered by collision coverage but are not. For example, if you strike a deer with your ATV, that will not be covered by collision coverage but, conveniently, by our next coverage.
Comprehensive coverage is there to help in situations involving losses that aren't associated with a collision. Some examples of these losses are theft, flood, fire, vandalism, and (as we already saw) hitting a deer. You can be the safest rider in the world, have no collision-related losses and still have to file a significant claim if someone comes along and steals your ATV.
Uninsured/underinsured motorist property damage (UM/UIM-PD)
If you are in an accident with someone who has no coverage or insufficient coverage to pay for the damages to your ATV, this coverage will help make up the difference. Compared to comprehensive coverage and collision coverage, this coverage varies the most from state to state. Check with your insurance company to see if an uninsured and/or underinsured motorist property damage coverage is available in your state. Many states do not allow this coverage if you have also purchased collision coverage because collision provides similar benefit. So, if you are only concerned about damage caused by others, uninsured/underinsured motorist property damage coverage may be an alternative.
Other considerations: deductibles
One of the critical decisions to consider when insuring your ATV is the deductible. The deductible is the amount you pay out of pocket in the event of an accident. Often times, different coverages will have their own deductibles, so there are multiple decisions to make. Comprehensive and collision coverages are subject to a deductible; the uninsured/underinsured property damage coverage may or may not, depending on your state's requirements.
The best way to decide what your deductible should be is to look at your level of comfort with risk. Are you comfortable paying more in the event of an accident in order to keep your premium payments lower? Do you prefer to invest a little bit more in your yearly premium in order to pay as little as possible when you have an accident? These are choices only you can make, but your insurance provider can help you decide which option is best for your unique situation.
Another important consideration is whether your insurance company offers something called a diminishing deductible
. This is a great benefit that rewards your loyalty and your safe driving. Essentially, if your insurer offers this benefit, each year you stay with them and are loss free, your deductible will decrease by a certain amount—often down to $0! Then, if you have an accident you will pay far less than you would if you didn't have that benefit included with your policy. Be sure to find out if your current ATV insurance policy includes a diminishing deductible.
Hopefully this overview helps make the choices you have when insuring your ATV a little bit easier. Like we've said in the past, your best bet is to contact our customer service team (1-800-236-2453) to have your specific questions answered to make sure that you get the right coverage for your situation.
The information provided in this article is intended for general informational purposes only and should not be considered as all encompassing, or suitable for all situations, conditions, and environments. Please contact us or your attorney if you have any questions.