ATVs may be fun to ride but can also cause severe damage that can cost you thousands of dollars.

Learn About the Importance of Protecting Your ATV With Recreation Insurance in OntarioFebruary, 23 2022

If you live in Ontario, you may already be familiar with the laws regarding ATVs and when insurance is required. Did you know there are many other reasons to insure your recreational vehicle despite the legal requirements? Some of these reasons may be more obvious than others, but each is critical in its own right.


Read on to learn all you need to know about recreation insurance in Ontario.


What is ATV Insurance?

Simply put, ATV insurance covers your all-terrain vehicle or other recreational vehicles if they are damaged or cause damage to another person or object. It is similar to an auto insurance policy in this way. In fact, many of the same auto insurance coverages apply to an ATV insurance policy.


The definition of an ATV can be different depending on who you ask. But in general, an ATV is a motorized land vehicle with two or more wheels meant for use off public roads. Quad bikes, four-wheelers, and utility sport vehicles are examples of ATVs.


What Does ATV Insurance Cover?


The coverages provided by an ATV insurance policy are almost identical to the coverages provided by an auto policy:


  • Bodily Injury Liability – In the event you injure someone with your ATV, bodily injury coverage will pay for any medical expenses for which you are responsible. The limits offered can vary by each insurance company and local requirements, but it is typical to see the limits split by per person and per accident. For example, $25,000 per person/$50,000 per accident.
  • Property Damage Liability – Property damage liability will repair any damage you cause to another object with your ATV. This can include damage you cause to another ATV or any other object. The limits offered will generally be the most an insurance company will pay in a single occurrence.


In Ontario, carrying bodily injury and property damage is usually sufficient to use your ATV legally off-road. However, these coverages will only cover damage to others you are liable for. It will not cover any damage to your ATV if you are at fault or injuries if you or your passengers are hurt.


In order to have coverage for these things, you will need to purchase the following optional coverages:


  • Medical Payments – Medical payments coverage provides payment for any injuries you or your passengers sustained from an ATV accident.
  • Uninsured/Underinsured Motorist – These coverages protect you from individuals that hit you and do not have insurance or do not have enough insurance to cover the damages. In these cases, the insurance company will pay for any damage to your ATV or any injuries that occur as a result. The limits for uninsured and underinsured motorist coverage are similar to the bodily injury limits in that they are separated into a per person and per accident amount.
  • Comprehensive – This optional coverage will cover any damage to your ATV caused by anything other than a collision with another object. The types of losses covered by comprehensive are fire, theft, vandalism, or flooding. Unlike the liability coverages mentioned above, no limit is selected. An insurance company will typically pay the actual cash value of the ATV if damaged. However, you must select a deductible, which is your out-of-pocket expense in the event of a loss. The deductible amounts can range from $100 to $1,000, and the higher deductible you choose, the lower your price will be.
  • Collision – Collision covers precisely what you would imagine. It provides coverage for damage to your ATV if you hit another object or ATV. Similar to the comprehensive coverage, the amount you are covered for is the actual cash value of the ATV, subject to a deductible of your choosing.


What Does ATV Insurance Not Cover?


It may go without saying, but it is important to note that there are some exclusions you should be aware of when it comes to ATV insurance. Like most policies, these policies will not cover any intentional damage you cause or damage that occurs due to illegal activity.


The most critical exclusion to note is that most insurance companies will not cover any organized racing activities. If you are using your ATV for racing, a specialized policy may need to be purchased.

Why is ATV Insurance Important?

You may be wondering why ATV insurance is even necessary, especially if you plan on solely using your all-terrain vehicle on your property. In Ontario, it is a legal requirement to insure your ATV if you are using it anywhere other than your property.


Another, more obvious reason is to protect your ATV. Many people assume that your home or auto insurance policy will cover these types of vehicles. However, they do not. In fact, both the auto and home policies will frequently exclude coverage for ATVs. So, the only way to ensure that you are protected from things like a fire that damages your ATV, or it being stolen is to purchase ATV or recreation insurance.


Consider the cost of purchasing a new ATV, for example. Depending on the model and features, they can cost anywhere from $2,000 to $6,000. If your ATV were damaged or completely totaled, would you have the money to replace it? The better alternative is to pay a little upfront to insure the ATV instead in almost all cases.


However, protecting yourself is more important than protecting your ATV. If you are injured or seriously injure someone else, ATV insurance can help with the costs of any potential lawsuits that might arise.


Medical costs continue to increase every year, and adding legal expenses on top of them could be financially devastating if you are sued. ATV insurance is the best way to transfer that risk to protect your finances.


What is Next?

A recreation policy is necessary for anyone who owns or operates an ATV in Ontario. For more information on the proper coverage needed, contact the licensed experts at Duliban insurance for a quote today!


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