Beware the Standard Policy
Anyone who’s ever bought insurance of any kind will be familiar with the term “standard policy”. So what exactly does that mean? Usually it means that the insured has the minimum coverage applicable under the law and after that the deal all goes the way of the insurer. But buying insurance should be buying protection and it’s important for anyone buying a policy to understand very clearly to what extent they’re protected by it.
One area where insurers are particularly vulnerable is ATV insurance. First of all, many new ATV owners don’t see insurance as a priority, but this is a very short-sighted point of view. Driving an ATV has all the same risks posed by driving a car, and in some cases there are additional risks. So it’s just as important to be insured in your ATV as it is to be insured in your car.
So what are the options beyond the standard policy for ATV insurance? Here it’s the extras that become important. Some of the extras which may be offered by insurance companies include coverage for the ATV trailer, coverage for custom options on the ATV and third party property damage for when an ATV ends up in the neighbour’s swimming pool.
There can be a lot of room for negotiation with insurers when it comes to insurance. But it’s very important before beginning negotiations that the insurer understands exactly what’s covered in the standard policy. Usually this is pretty similar to car insurance and will include liability insurance, comprehensive insurance and collision insurance. It may even cover the even of collision with an uninsured off-road vehicle. However every standard policy is different and it’s important to understand before beginning negotiations on extras.
One area where insurers are often inclined to negotiate to the advantage of the policy holder is policies for vehicles which are clearly intended for seasonal use and spend most of the year up on blocks. In clear circumstances, insurance companies will usually be prepared to give a very substantial discount on such policies.
As with any insurance, it’s important to shop around. The variation in premium costs between different companies can be enormous and it’s important for the ATV owner to get the best deal available. This is where reading the standard policy becomes additionally important, because one company may have cover in the standard policy that may not apply to this particular vehicle or the use for which it’s intended, and in that case the ATV owner is better off going to another company which does not cover – and charge a premium on – that particular risk.
It’s important to check out all this options at the outset, because there’s nothing more frustrating than having a problem with an ATV and then discovering too late that it’s not covered in the policy.