Jeffrey Wade
Specialty auto insurance is a type of insurance that covers vehicles that fall outside the scope of traditional insurance policies. This includes vehicles used for specific purposes, such as farming, or those that are only used seasonally, like snow plows or ice cream trucks. It also includes recreational vehicles, classic or antique cars, and exotic vehicles. Specialty auto insurance is designed to protect these unique or less commonly used vehicles from damage or loss, ensuring that owners can get adequate compensation in the event of an accident or natural disaster.
| Characteristics | Values |
|---|---|
| Purpose | Covers items that are unique or destroyed by unusual events |
| Items Covered | Boats, classic cars, exotic cars, motorcycles, ATVs, antiques, etc. |
| Coverage Type | Comprehensive, collision, liability, etc. |
| Use Case | Seasonal, limited use, recreational, farming, etc. |
What You'll Learn
Seasonal auto protection
The type of seasonal product that is suitable for a business depends on the intended use of the vehicle during the off-season. If the vehicle is to be used for personal driving during the off-season, the insurance provider should be informed, as this may lower premiums since the vehicle will not be used for business purposes. On the other hand, if the vehicle is only to be stored during the off-season, it is advisable to retain comprehensive coverage to protect it from falling objects, vandalism, hail, and theft, while removing other add-ons from the specialty plan.
It is important to note that completely cancelling an insurance agreement during the off-season can lead to interruptions in service and financial penalties in the future. Instead, adjustments can be made to the policy to save money, such as suspending some coverage during times when the vehicle is not in use. This could include situations where a vehicle is parked in a garage for an extended period or when a vehicle, such as a motorcycle or RV, will not be used during certain seasons.
In addition to insurance considerations, seasonal auto protection also involves taking practical steps to maintain the vehicle during different seasons. For example, during the summer, applying a premium auto care wax with UV protection and using sunshades or parking in the shade can help protect the vehicle's exterior from sunlight and heat damage. Regular washing and waxing are also important to remove dust buildup. In the winter, applying a winter-grade wax and using snow covers can provide protection from cold temperatures and moisture. Additionally, regular snow and ice removal, as well as undercarriage cleaning to remove salt buildup, are crucial to prevent rust formation.
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Limited use coverage
Specialty auto insurance is a type of insurance that is taken out when a traditional policy does not meet a driver's unique needs. These policies are often taken out on specific types of vehicles, such as farming equipment, or they offer coverage for a limited period of time, such as seasonal auto insurance.
Vehicles covered by limited use agreements cannot be used for normal driving purposes, such as commuting to and from work or school, or for business purposes. They must be stored in a specific location, such as a fully enclosed garage, every night.
Limited use auto insurance is ideal for vehicles that are used sparingly or have specific restrictions on their usage. Examples of limited-use vehicles include classic cars, antique vehicles, show cars, collector cars, seasonal vehicles (e.g. motorcycles or convertibles used only during specific seasons), and vehicles used for occasional or recreational purposes.
The specific types of coverage available for limited-use auto insurance may vary between insurance providers. However, common coverage options include liability coverage, comprehensive coverage, collision coverage, uninsured/underinsured motorist coverage, and agreed value coverage (for classic or collector cars).
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Recreational vehicles
Specialty auto insurance is required when a traditional policy fails to meet your unique needs. These unique policies concern specific types of vehicles, such as those used for recreational purposes.
In some states, certain recreational vehicles are required to have a minimum level of liability insurance when operated on state-owned lands. For example, if you enjoy waterskiing at the lake with your family, you will need marine coverage for your boat. Similarly, if you like to explore the backcountry on ATVs or snowmobiles, you will need off-road vehicle coverage.
RVs, or motor homes, may not be adequately covered by a standard auto policy. Therefore, it is important to consider specialized insurance for these vehicles. Travel trailers, whether used seasonally or as a permanent residence, also fall under recreational vehicle insurance. Additionally, fifth-wheel trailers have unique risks that require specialized coverage.
When choosing a recreational vehicle insurance policy, it is important to consider your specific needs and the types of activities you plan to use the vehicle for. By working with an agent, you can gain knowledgeable insights to help you select the appropriate coverage for your recreational vehicles.
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Farming and ranch insurance
Farmers and ranchers require specialised insurance to protect their complex operations. Farm and ranch insurance is a combined level of protection designed to cover both personal and commercial risks.
Farm and ranch insurance policies can be customised to meet the specific needs of the farm or ranch, and they typically include coverage for the home and its contents, as well as farm personal property such as machinery, equipment, tools, irrigation equipment, harvested crops, and livestock. It also covers farm structures, including barns, machine sheds, detached garages, and other outbuildings.
Farm liability coverage is another important aspect of farm and ranch insurance. It provides protection in the event of bodily injury, medical expenses, or farm property damage. This coverage can be crucial if, for example, a horse escapes its paddock and causes an accident on the road. Additionally, farm and ranch insurance can include vehicle insurance for farm trucks, tractors, and other equipment.
Farm and ranch insurance is distinct from homeowners insurance, which does not typically cover farm or ranch property, operations, or activities. While homeowners insurance may be sufficient for a hobby farm, additional coverage is necessary for larger operations.
When considering farm and ranch insurance, it is important to work with knowledgeable agents who understand the unique needs of agricultural businesses. This ensures that the policy is tailored to provide the necessary protection for the farm or ranch's specific operations and exposures.
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Classic cars
Specialty auto insurance is required when traditional policies do not meet your unique needs. Classic car insurance is a type of specialty insurance that is designed for vehicles that are not driven frequently and are considered "special".
Classic car insurance is for vehicles that are well-maintained, in good condition, and driven infrequently for pleasure or hobby purposes. This type of insurance is ideal for vehicles that are stored in a private, enclosed, and locked garage or storage unit when not in use.
Classic car insurance policies often include built-in or optional coverages that are tailored to classic car owners' needs. These can include:
- Towing coverage
- Repair shop of choice
- Emergency lodging
- Discounted salvage buyback
- Inflation guard feature
- Spare parts coverage
- Disaster relocation coverage
- Full safety glass coverage
Classic car insurance offers notable cost advantages over regular auto insurance due to specific usage patterns and risk factors associated with collector vehicles. The reduced risk of accidents, fewer injury claims, and lower injury-related costs contribute to more affordable premiums for classic car insurance policies.
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Frequently asked questions
Specialty auto insurance is a type of insurance that covers specific types of vehicles, such as farming vehicles, or offers coverage for a limited period of time, such as seasonal auto insurance.
Examples of specialty auto insurance include:
- Seasonal auto insurance for vehicles used in seasonal businesses, such as snow plow or ice cream trucks.
- Limited use coverage for vehicles that are rarely driven, with a minimal annual mileage of typically 2,500 to 5,000 miles.
- Recreational vehicle insurance for ATVs/quads, RVs, boats, and motorcycles.
- Classic car insurance for collectible, antique, or exotic cars.
Specialty auto insurance is needed when a traditional insurance policy does not meet your unique needs. For example, if you own a classic car, it may be rare or you may have invested a lot of money in modifications. In the event of an accident or natural disaster, specialty auto insurance can provide the necessary coverage to protect your investment.
