It’s hard to imagine, but Winter is around the corner and you’ll be dusting off your snowmobile in no time – if you have one! Having insurance coverage is a good idea because it can protect you from financial losses associated with accidents, injuries and properly damage. But why pay for your snowmobile during the warmer months when it is stowed away? Is it necessary to keep coverage on it while it’s not being used?
Year-Round Coverage May Be Required
First of all, purchasing a snowmobile can be costly. Prices range from a few thousand dollars up to $15,000 or more! For most people, a larger purchase like this may require financing, and in many cases, your loan agreement will require that you carry full coverage including comprehensive and collision coverage while you make your loan payments. Yes, this includes the months when you cannot ride.
Storing your snowmobile may be another reason to carry insurance all year round. If you have limited space on your property to store your sled, a storage facility may require you to carry comprehensive coverage.
Year-Round Coverage Can Protect You from a Number of Hazards
Many people keep their snowmobile in their garage, pole barn, or stored under a tarp next to their garage during the warmer months. You may be wondering why you should bother covering it. After all, it is not likely that you will be getting into an accident when there is no snow on the ground.
However, consider the following risks:
- Floods: Homeowners insurance does not cover flood damage and flood insurance does not cover self-propelled vehicles unless they are used to service the covered location or to assist handicapped persons. Only comprehensive snowmobile coverage can mitigate your losses.
- Property Crimes: If your snowmobile is stolen or vandalized, it is possible that your homeowners insurance may provide some compensation, but don’t count on it. Many policies exclude vehicles, including snowmobiles, from their contents coverage, and those that do provide coverage may not provide you with reparations in amounts that are acceptable to you. When you have your sled covered by an actual snowmobile policy, you and your insurance company can agree on its value prior to such an event.
- Fire and Natural Disasters: If you are self-storing your sled and your home is damaged in a fire or a natural disaster, your snowmobile is not likely to be the first thing you worry about. However, with such a large investment, it is to your benefit to know that you may be compensated for this loss by your snowmobile insurance while your homeowners insurance provides coverage for damage to your home.
Why a Year-Round Snowmobile Policy Makes Good Fiscal Sense
Still think a year-round policy is a scam? What if you were to find out that doing so could actually end up saving you money?
Insurance companies realize that those who live in climates with warm summers will not be spending much, if any, time on their sleds throughout several months of the year. The companies factor in your location and the amount of time (months) you would actually be using the snowmobile. The cost savings come into play when you renew your policy. Many insurance companies offer renewal discounts; so the longer you keep your policy active with the same company, the less it will cost you in the long run.
Thinking about purchasing a snowmobile? Don’t forget to call your insurance agent first, but check out the links below about snowmobile safety courses. These safety courses may be required in order for you to operate your snowmobile!