SNOWMOBILE INSURANCE

Whether you own one snowmobile or one for every person in your household, you need to understand what is and isn’t insured for snowmobile use and storage. There are two areas to focus on: damage to the snowmobile and injury to others or damage to their property. Based on your snowmobile usage, you need more or different coverage.

Property Insurance for Snowmobiles

Some home insurance policies do offer coverage for snowmobiles stored on your property as long as they are under a specified horsepower and kept in an insured structure. If you have this coverage, it would fall under the building contents coverage of your homeowners insurance policy. Investigate coverage limits, though, since items stored in a garage or other structure on your property might have restricted protection.

Home insurance almost always excludes coverage for a snowmobile damaged in a collision, though certain insurers make an exception for off-road vehicles that are used to service the insured home’s premises. This is a very nuanced coverage, so discuss it with your insurance agent.

Conversely, a snowmobile insurance policy covers damage to the sled whether garaged or from use. A parked snowmobile would need to have comprehensive coverage in order to receive protection for repair or replacement due to fire, explosion, theft, vandalism, or a strike or crush by another object. Collision insurance is what covers damage resulting from a wreck. You may also be able to add protection for your snowmobile’s trailer, cover, helmets and other safety equipment into your snowmobile physical damage policy.

Comprehensive and collision insurance are often written on a replacement cost basis if the snowmobile is relatively new — two years old or newer is typical. Beyond that time frame, coverage is usually on an actual cash value basis, which means the snowmobile’s insured value reflects depreciation.

Talk to your insurance agent about how your collision and comprehensive coverage apply if you take your snowmobile out of state or across international borders. Some insurers allow this kind of travel.

Liability Insurance for Snowmobiles

As with property insurance, some liability coverage for snowmobile accidents might be offered under a homeowners policy. Restrictions are often tight and could limit coverage to use only on your insured property or by certain individuals, such as adults covered under your home insurance.

For broader liability coverage, opt for snowmobile insurance. It will help with costs you’re required to pay related to a snowmobile accident, such as injury to others or damage to their property. It may be written to include injuries to passengers as well, but not always, so verify that the policy covers additional passengers. This is typically sold as medical payments coverage.

Some states require snowmobile liability insurance and stipulate minimum coverage levels. Even where it’s not required, it’s an important protection. A snowmobile injury that paralyzes someone or keeps them out of work for weeks could be financially devastating without liability insurance to help. Because of the exposure, the standard snowmobile liability limits are usually not high enough, so consider a personal umbrella policy. But be sure to check what the underlying policy limits need to be to prevent a gap in coverage with your personal umbrella policy.

Also, check any policy you intend to buy for age and location restrictions on use, as they vary by insurer. Intentional, reckless and illegal behaviors are often excluded from coverage, so be a responsible driver.

Snowmobile liability insurance may also offer some coverage for your use of a rented sled, but damage to the rental or lost revenue due to that damage won’t be covered. It’s probably best to pay for the rental company’s insurance in that situation.