Power sports enthusiasts live for the adrenaline rush offered by activities like off-roading, snowmobiling, jet skiing and dirt biking. While these activities provide endless excitement, they also come with inherent risks. This is where power sports insurance steps in, offering protection and peace of mind to thrill-seekers and their prized possessions.
What Is Power Sports Insurance?
Power sports insurance is a specialized insurance product designed for those who engage in extreme and high-risk recreational activities. It covers a wide range of vehicles, from ATVs and dirt bikes to personal watercraft and snowmobiles. The primary goal of this insurance is to safeguard individuals and their equipment against potentially catastrophic out-of-pocket expenses and losses following accidents or other incidents impacting their property.
How Is Insurance Structured for Extreme Power Sports Activities?
Power sports insurance is typically structured to cater to the unique needs of thrill-seekers. The coverage offered may include the following:
- Liability coverage—This may cover bodily injury and property damage claims in case a policyholder accidentally harms someone else or their property during power sports activities. It also provides coverage for legal defense costs.
- Property damage coverage—This component may protect a policyholder’s power sports equipment, such as motorcycles, ATVs or jet skis, in the event of theft, vandalism, accidents or natural disasters.
- Medical payments coverage—If a policyholder or their passengers sustain injuries while participating in extreme power sports, this coverage may assist in covering resulting medical expenses.
- Uninsured/underinsured motorist coverage—In case an insured is involved in an accident with someone who lacks insurance or has insufficient coverage, this component may help recoup losses.
How Do Deductibles Work in Power Sports Insurance?
Deductibles in power sports insurance function similarly to other types of insurance policies by establishing a minimum amount that must be paid out of pocket before coverage will begin to contribute.
As a general rule, higher deductibles typically lead to lower premiums, while those with lower deductibles will pay higher premiums. When choosing a deductible, policyholders should consider their budget and the level of risk with which they are comfortable.
Get the Right Coverage
With nearly 20 years of experience serving individuals, families and businesses, the dedicated staff at the Morehead Agency has the knowledge and resources to help you assess your insurance needs and acquire optimal coverage. Contact us today to get started.