Is your Snowmobile Covered Correctly?

Is your Snowmobile Covered Correctly?

3 types of Loss Settlement for Snowmobile

Insurance companies generally do not offer all three-loss settlement types - instead, the loss settlement type they have available to them is based on the type of motorcycle they own.

1. Actual Cash Value (ACV)

If a customer owns a mass-produced snowmobile that has a resale value generated by a third party like the N.A.D.A. appraisal guides or Kelley Blue Book, they will generally be offered an Actual Cash Value (ACV) settlement option. This means that, in the event of a total loss or if their snowmobile is stolen and not recovered, they will generally be paid the ACV, less their deductible amount.

If a customer owns a custom or classic motorcycle with certain characteristics, they might find that some companies won’t insure there. Snowmobile However, many insurers that specialize in snowmobile will insure these types of snowmobile and will generally offer one of two loss settlement types - Agreed Value or Stated Amount. Criteria for these settlement types vary by insurance company, and no insurance company offers both types.

2. Stated Amount

Stated Amount is the amount selected by the snowmobile owner at the time the policy is purchased and is the maximum amount the insurance company will pay in the event of a claim. If the snowmobile is totaled or is stolen and not recovered, the insurance company will generally pay the Stated Amount or the ACV as determined by sources like N.A.D.A. or Kelley Blue Book, whichever is less. And, a deductible applies to the settlement amount.

3. Agreed Value

Agreed Value represents the value of the bike as agreed upon by the customer and the insurance company when the policy is written. This amount doesn’t change over time unless both parties agree to the change. If the bike is totaled or stolen and not recovered, the customer will generally receive the agreed upon amount. No deductible amount applies to an Agreed Value settlement.

Do not use the Internet for the value of your snowmobile. Always get an appraisal for your snowmobile. This will give the correct value and coverage for your

Snowmobile.

For a quote on your Auto and Home Insurance call Lester Robinson at 1-800-836-2040 ext. 3014 or go to website at http://www.wnyinsurance-quote.com/html/quotes.html

One of the best settlement options is Agreed value policy. Always update the value on your motorcycle policy once a year. For snowmobiles, insurance is not required while the snowmobile is being driven on the private property of the snowmobile’s owner.

In all other cases, the law requires that you have the following minimum coverage’s.

Third-Party Liability Coverage of at least $60,000 to protect you if another person is killed or injured, or if their property is damaged. If you’re sued, this coverage pays claims up to the limit of your coverage, and the cost of settling the claims.
Statutory Accident Benefits Coverage to provide supplementary medical, rehabilitation, attendant care, caregiver, non-earner, income replacement, and death benefits if you are killed or injured in an accident, regardless of who caused it.
Direct Compensation – Property Damage (DCPD) Coverage to pay for damage to your vehicle and its contents, if another driver is at fault for an accident that occurs in USA and an insurance company licensed in the province insures that driver.
Uninsured Automobile Coverage to provide financial compensation for you and your family if you’re injured or killed by an unidentified driver or by an uninsured motorist. It also covers damage to your vehicle caused by an identified uninsured driver, up to $500,000.

If you have insurance questions please call Lester Robinson at 1-800-836-2040 or e-mail at lrobinson@thenorthwoodscorp.com

For a quote on your Auto and Home Insurance call Lester Robinson at 1-800-836-2040 ext. 3014 or go to website at http://www.wnyinsurance-quote.com/html/quotes.html

Lester J. Robinson III, FICF, CC

Insurance Broker

The Northwoods Corp.

8810 Main Street

Williamsville, NY 14221

Phone: (716) 626-0004 Ext. 3014

Fax: (716) 626-5057 Att: Lester

lrobinson@thenorthwoodscorp.com

See “the ABC’s of Insurance” TV show on Time Warner Cable channel 20 in Western New York hosted by: Lester Robinson