Does insurance cover off-roading?

Have you ever taken your truck off-road and wondered whether your car insurance policy will cover the damage if things go wrong? Off-roading is a hobby many Canadians enjoy year-round. Whether you're exploring the backcountry on your ATV, splashing through mud puddles in your Jeep, or gliding over snow-covered fields on your snowmobile, off-roading is a thrill and a risk.

While these types of off-road vehicles are built for tough terrain, they also face higher chances of damage due to rollovers, collisions, mechanical strain, and natural road hazards, which is why having the right off-road vehicle insurance is essential. Unlike traditional car insurance, which specifically excludes off-road activities, off-road vehicle insurance is designed to protect you against the unique risks Canadian terrain offers. With collisions on the rise, including 5 fatalities in the first week of July 2024, now more than ever, it is important to ensure you have the right coverage.

In this guide, we'll break down the types of auto insurance policies available, what you can expect from your insurance coverage, and how to save on your premiums. Sick around for more information.

What does off-road vehicle insurance cover?

Off-road vehicle insurance includes a variety of different coverages depending on the insurance company and the vehicle. Whether you're driving an ATV, snowmobile, dirt bike, or 4x4 truck, here's what you can expect:

Liability coverage

Liability insurance is intended to protect you from third-party claims alleging property damage or bodily injury following an accident you cause. For example, if you accidentally collide with another off-road vehicle and the driver is injured, your liability coverage will cover everything from medical and vehicle repair bills to legal fees, including both defence and settlement fees.

Coverage limits for third-party liability insurance will vary between different provinces. For example, in Ontario, you'll need to purchase a minimum of $200,000 in coverage, whereas in Nova Scotia, $500,000 is required. Regardless, this policy is mandatory for all motorists in all provinces.

Accident benefits coverage

If you get into an accident in your off-road vehicle and that accident causes physical harm to another person, like a passenger on your ATV, the accident benefits portion of your policy can help cover their medical care. Accident benefits typically pay for medical bills not covered by one’s healthcare insurance, such as prescription medication or rehabilitation. Again, this policy is mandatory in all provinces across Canada.

Uninsured motorist insurance

Uninsured motorist insurance protects you financially if you get into an accident with an uninsured, underinsured, or anonymous driver, in the case of a hit-and-run. For example, if an at-fault driver of a snowmobile hits you and they don't have sufficient insurance coverage, this policy will kick in to ensure you're fairly compensated for your losses. Note that this policy is mandatory in some provinces, like Ontario and British Columbia, but optional in others, like Alberta.

Collision coverage

Collision coverage pays for damage to your off-road vehicle resulting from a collision. For example, if your dirt bike crashes into a tree or your 4x4 rolls over on a rocky mountain trail, this coverage can help pay for repairs or replacement of your vehicle. All you'll need to pay is a deductible, which ranges from $500 to $1000. This policy is optional in all provinces, so make sure to request that this be added to your plan; otherwise, you will be forced to pay for repairs or replacement on your own.

Comprehensive insurance

Comprehensive insurance can be important for off-road drivers since it protects against damage to your car that is not caused by a collision. For example, if your off-road vehicle is damaged while parked, is involved in a rollover incident, or suffers body damage, comprehensive coverage may cover you.

The specific types of damage that your car is protected against depend on the perils you choose to include with your policy. Some of the most common perils include vandalism, theft, water damage, windstorms, fire, and more. Again, when filing a claim, you'll need to pay the deductible to your insurance provider. And remember, because this policy is optional, you'll need to specifically ask your insurance company to add this to your standard plan if you want to ensure you're covered.

Key difference between regular car insurance and off-road vehicle insurance coverage

Off-road vehicle insurance differs significantly from a standard car insurance policy in several ways. Let's look at these differences in detail below:

Insurance gaps

Standard car insurance does not usually cover off-road incidents unless your policy documents specifically state that off-road insurance is included. It does, however, cover damage that occurs on public roads. For example, if you take your motor vehicle on an overgrown back trail and damage its suspension, you'll likely be denied coverage. On the other hand, off-road vehicle insurance is specifically designed for trails, fields, forests, and other non-paved terrains you may navigate using your off-road vehicle.

Examples of what is not covered by traditional auto insurance

Let's look at some examples of scenarios where your car insurance policy would not provide coverage, to give you a better idea about why specialized protection is needed:

Dirt bike collisions on public property

Using your dirt bike for trail riding without off-road vehicle insurance, even if on public land, can still result in uncovered repairs, replacements, and personal injuries, given that you were not operating a traditional road vehicle. For example, if you hit another biker on a public trail and they suffer a bodily injury, you'll likely be responsible for all expenses out of pocket.

Using your truck off-road

Driving through deep mud puddles that damage the undercarriage of your truck won't be covered by standard vehicle insurance unless your policy specifically states you have coverage for off-road activities.

Private property damage

Off-road collisions that occur on private land are also not covered by standard insurance. For example, let's say you and your friend are on your private property, and you get into an ATV accident that hurts your friend. Your car insurance wouldn't cover you. But if you have home insurance, you'll be protected from liabilities and arising costs.

In contrast, if you get into an accident on someone else's private property and injure another person while operating your all-terrain vehicle, the property owner's homeowners insurance won't cover damages.

Why special coverage is needed

As we mentioned, off-road vehicles are at a greater risk of suffering damage than other vehicles, due to rugged terrain conditions, unanticipated challenges, and collisions. Drivers of off-road vehicles are also at greater risk of injuries. For example, snowmobiling alone is linked to an average of 73 fatalities per year in Canada. Unlike standard insurance, off-road vehicle insurance takes these unique risks into account to ensure you're protected against the unexpected.

Solely relying on standard car insurance policies won't be enough to ensure you're comprehensively protected, leaving you exposed to expensive repairs, medical bills, and other costs in the event of an accident. If you enjoy off-road activities, the best thing you can do for your peace of mind and wallet is purchase the right insurance for your off-road or all-terrain vehicle.

Exclusions and what’s not covered by off-road insurance

As with any car insurance policy, off-road vehicle insurance coverage has its limits. Beyond any optional coverages you choose to exclude from your policy, most off-road car insurance plans do not cover the following instances:

Illegal activity

If you were doing anything illegal at the time of the incident, your insurance company will not cover you. For instance, if you were involved in an off-road street race, stunt driving, driving under the influence of alcohol or drugs, or engaged in distracted driving behaviour, like texting and driving, you would be forced to pay for the damage out of pocket.

Mechanical failures

If your off-road vehicle suffers a mechanical failure that does not arise from a crash or an insured peril, like water damage, your insurance policy won’t cover you. While you may be covered under your manufacturer's warranty, you'll need to specifically add mechanical breakdown coverage to your plan or purchase a separate extended warranty.

General wear and tear

General wear and tear is not covered by most insurance policies. Unfortunately, a little wear and tear is inevitable, even with regular maintenance. Wear and tear is especially common in off-road vehicles due to the rough driving conditions they face. An insurance broker can discuss this in more detail and offer numerous other benefits, but generally speaking, off-road car insurance will not cover wear and tear to your vehicle, such as rust or interior decay.

Unapproved modifications

Unapproved modifications are an important insurance exclusion for off-road drivers. Many off-road motorists like to trick out their vehicles with various modifications, but this can spell trouble when it comes to their car insurance policy.

Most insurers have a list of approved modifications that drivers can make to their cars. Before you change anything, make sure the modification you want to make is on the approved list. If you make an unapproved modification, like adding oversized tires to your all-terrain vehicle, you could have a future claim denied.

Legal and financial consequences

Violating these exclusions won't only lead to your claim being denied, but it can also lead to the cancellation of your coverage altogether. For example, if your insurance provider discovers that your property damage occurred as a result of illegal activities, you could be flagged for fraud, leading to more severe consequences.

How to purchase off-road vehicle insurance

Buying off-road vehicle insurance is pretty straightforward. Here’s a step-by-step guide on how to purchase coverage for your ATV, snowmobile, dirt bike, or other off-road vehicle:

1. Know what type of vehicle you're insuring

Start by identifying the exact make, model, and year of your off-road vehicle. Insurance providers will need to know whether you’re covering a dirt bike, an ATV, a lifted 4x4 truck, or a snowmobile. Each vehicle comes with different risks and insurance requirements that will need to be considered when putting together your insurance plan. The type of vehicle you insure will also impact your rates. So, make sure you're honest and notify them of any modifications you may have made, so your coverage reflects your specific needs.

2. Determine your coverage needs

Next, you'll need to think about how and how often you use your off-road vehicle. Will you be trail-riding on weekends? Transporting personal belongings on your property? Engaging in legal off-road racing? The type of activities will affect the types of coverage you’ll need. Remember, you'll need to ensure you meet your province's minimum mandatory insurance requirements, but don't forget about optional policies as well.

3. Gather required documents

Before applying for off-road vehicle coverage, gather all of your documents, including:

• Vehicle ownership or registration.

• Driver’s licence.

• Proof of previous insurance (if applicable).

• Details about modifications or custom parts.

4. Shop around

Not all insurers offer off-road policies, and premiums can vary widely across provinces. For example, in 2024, premiums in Ontario for snowmobiles ranged from $400 to over $2,000 a year, depending on age, experience, and location. So shop around and use brokers or online tools to compare policies across multiple providers before choosing a provider.

5. Ask about savings

Don't forget to ask whether you qualify for any insurance savings (more on this below).

6. Read the fine print

Before signing your policy, make sure to read the fine print and take note of what is and isn't covered.

Maintaining off-road vehicle insurance rates and keeping insurance costs low

Off-road vehicle insurance in Canada can range from a couple of hundred dollars a year to thousands. If you want to save as much money on your premium as possible, here's what you'll need to do:

Bundle your policies

The more insurance policies you buy from a provider, the more likely you are to receive a discount. For example, if you purchase an off-road car insurance policy for your off-road vehicle and a second regular car insurance policy for your passenger vehicle at the same time, you could receive a discount of 15% or 20%.

Ask about discounts

Installing winter tires, theft-prevention devices, and other safety features on your off-road vehicle, and taking a defensive driving course can qualify you for a discount with your insurance company of up to 10%. Additionally, if you use your off-road vehicle infrequently throughout the year, you may qualify for low-mileage insurance discounts.

Shop around and compare quotes

Your premiums may be calculated differently by various insurers. Make sure to shop around and compare quotes from at least two or three providers to ensure you're getting the best rates possible that don't compromise your coverage.

Pay for coverage upfront

Most insurance companies tack on surcharges to customer accounts that pay monthly, as it costs them money to process your payment each month. To avoid these fees, consider paying your premium upfront instead.

What types of off-road vehicles can be insured?

Insurable off-road vehicles include:

• Dirt bikes.

• Dune buggies.

• UTVs.

• ATVs.

• Snowmobiles.

• 4x4 trucks.

How do I choose the right deductible for off-road vehicle insurance?

To choose the right deductible amount, consider what your risk tolerance is and how often you go off-roading. A higher deductible can lower your premium, but it will increase your out-of-pocket expenses if you need to file a claim in the future. The key is to balance affordability and costs.

Can I get insurance for a modified off-road vehicle?

Yes, you can get insurance for modified off-road vehicles. Make sure all modifications are disclosed to your insurance company when purchasing coverage, and note that you may pay more for insurance because of your modifications.

Does off-road vehicle insurance cover damage during extreme weather events?

Comprehensive coverage usually covers damage resulting from weather conditions like flooding, hail, and falling objects. But you will need to add this policy to your plan, as it is not considered a mandatory policy in Canada.

Is off-road vehicle insurance more expensive than regular car insurance?

Not always. It comes down to the type of vehicle, where you live, your age and experience, driving record, insurance history, and other factors.

Does my off-road vehicle insurance cover towing costs after an accident?

Some policies may offer towing after accidents automatically, while others offer it as an additional add-on like roadside assistance. Check with your provider for clarification.

The bottom line

Off-roading is all about the adventure. But it also comes with risks. To ensure you're protected, building a customized insurance policy is crucial, and BrokerLink is here to help you do just that. Contact BrokerLink over the phone or use our online quote tool to get a free quote within minutes from the comfort of your own home today!

1-866-724-2372

FAQs on car insurance off-roading

Do I need insurance for my ATV?

Yes, if you drive an all-terrain vehicle, you need to purchase ATV insurance. ATV insurance coverage varies between policyholders but can include financial protection against property damage, bodily injury, liability claims, and more. Please note that ATVs are not typically covered by home insurance policies, which is why a separate off road vehicle insurance policy for your ATV may be necessary.

Do I need insurance for my dirt bike?

Insurance requirements for dirt bikes vary by province. That said, most Canadian provinces require off road vehicle insurance for dirt bikes. In addition, you will need to register your dirt bike with your province’s Ministry of Transportation and carry proof of dirt bike insurance with you at all times.

Do I need insurance for my snowmobile?

Yes, snowmobile insurance is compulsory in all Canadian provinces and territories. Snowmobile insurance is designed to offer comprehensive financial protection in the high-risk environment that snowmobiles are driven in. Most policies include coverage against property damage, third party liability claims, and personal injury.

Does driving my vehicle off road void my car insurance policy?

The answer to this question depends on the car insurance policy you have. If you have a regular car insurance plan and you engage in off road driving, and an accident occurs, your insurance company may deny your claim. However, your coverage may not be voided entirely, especially if you drive a car designed for trail use, like a Jeep. Your coverage could be voided if you make an unapproved modification to your car or participate in an illegal activity while off road driving. Meanwhile, if you have an off road insurance policy for your vehicle, then you will likely be covered (though it depends on the exact circumstances of the incident).

Will my off road car insurance claim be denied?

Depending on your existing insurance coverage and the circumstances surrounding the incident, your claim could be denied. The best way to find out if a certain type of claim will be denied is to have an insurance broker review your policy and clearly explain its limitations. This will give you a better idea of what types of claims are likely to be approved and which are likely to be rejected. Note that if your claim is approved, you will first have to pay the deductible before your insurer steps in. Meanwhile, if your claim is rejected, you will need to pay for the cost of the damage entirely out of pocket.

Can I bundle off road car insurance policies?

Yes, and bundling off road car insurance policies is a fantastic way to cut insurance costs! Terms and conditions apply to most insurance bundles, and these will vary by the insurance provider, but in most cases, policyholders have several options when it comes to bundling. For instance, you could purchase an off road car insurance policy and a regular car insurance policy, or a car insurance policy and a home insurance policy, or even a car insurance policy and a business insurance policy. Combining two or more insurance products can save you 15% to 20% per policy. Contact an insurance broker to learn more about the advantages of bundling insurance.

How can I keep my off road car insurance rates low?

If you’re looking for cheap off road vehicle insurance, check out the following tips:

• Sign up for an approved defensive driving course.

• Install a telematic device in your off road car or use a mobile application.

• Have an insurance broker review your coverage before it is up for renewal.

• Install an anti-theft device in your car.

• Buy a hybrid or electric off road vehicle.

• Choose an annual payment schedule over a monthly payment schedule for your off road car insurance policy to avoid monthly fees.

• Make your insurance payments on time and in full, and schedule a meeting with your insurance broker if you’re falling behind.

• Drive safely at all times and maintain a clean driving record.

• Inquire about other car insurance discounts, like employer, education, or volunteer organization-based discounts.

• Enlist the help of an insurance broker when buying an off road car insurance policy and have them compare rates on your behalf.

• Minimize how much time you spend on the road.

• Make sure your off road vehicle has winter tires during the cold months.

If you have any questions, contact one of our local branches.