When you purchase recreational insurance, your ATV gets covered in the event of a total loss when you’re driving the vehicle off of your property. A total loss means that the amount it would take to fix your all terrain vehicle costs more than the actual value of the vehicle. If you experience a total loss, then you receive money from the recreational insurance policy to replace your all terrain vehicle. The question is, how does the insurance company determine what you get in the event of a total loss?
The valuation method varies between different insurance companies, so it’s important to know exactly how your company handles valuation before you purchase a policy. Pricing guides such as Kelly Blue Book may provide information about your specific all terrain vehicle, with different pricing levels based on its age and overall condition prior to the accident.
Claims adjusters, especially those working with insurance companies who specialize in ATV coverage, also look into current market value for your vehicle. These values may vary greatly from the guidebooks, depending on the manufacturer of your all terrain vehicle and any modifications you’ve made to it.
Since vehicle prices vary greatly from region to region, it’s important to look for insurance companies who look at local listings of similar vehicles to determine exactly how much you should receive for your totaled all terrain vehicle. The disparity in prices between regions can be significant, and Kelly Blue Book and other guidebooks do not always take that into account. If you need coverage for additional all terrain vehicle accessories, you generally add a separate rider to your insurance policy.