Classic, motorcycle, boat and recreational vehicle coverage

Standard auto policies are designed for daily-use passenger vehicles. Several categories need something different, and using the wrong product produces gaps.

Classic and collector vehicles

The core issue is valuation. A standard policy pays actual cash value, which for an old vehicle is calculated with depreciation and bears no relation to what a restored classic is worth.

Specialist collector policies use agreed value, where the insurer and owner agree the value in advance and that amount is paid in a total loss, without depreciation.

Some use stated value, which is a maximum rather than a guarantee and is less favorable. Confirm which applies.

Collector policies are frequently cheaper than standard policies despite higher agreed values, because usage is limited and claim frequency is low.

The conditions typically include: limited annual mileage; secure enclosed storage; the owner having another vehicle for daily use; a minimum driver age and clean record; and restrictions on use — pleasure driving, shows and club events rather than commuting.

Some insurers have relaxed mileage restrictions considerably. Read the specific terms, since driving outside them can void coverage.

Update the agreed value periodically, since collector vehicle values move and an agreed value set six years ago may be well below current market.

Motorcycles

Generally require a separate policy, not an endorsement to an auto policy.

Key considerations:

Liability limits matter as much as for a car, and motorcycle accidents have high injury severity.

Uninsured and underinsured motorist coverage is particularly important, given that motorcyclists are frequently injured by other drivers and injuries are severe.

Custom parts and equipment coverage. Standard policies limit coverage for aftermarket parts, frequently to a small amount. Riders with significant customization need this scheduled specifically.

Riding gear coverage, which some policies include and many do not. Helmets, jackets and protective equipment represent real value.

Seasonal considerations. Some insurers offer reduced rates during storage months, though maintaining comprehensive coverage during storage is advisable for theft and damage.

Do not cancel entirely during winter — a lapse in coverage affects future rates and leaves the bike uninsured against theft.

Passenger liability, which is excluded or limited in some policies.

Boats and personal watercraft

Homeowners policies provide very limited coverage for watercraft — typically small boats with low horsepower, at low limits, and often only while on the property.

Anything substantial needs a separate policy.

Boat policies cover hull damage, liability, medical payments, and typically include coverage for the trailer and motor.

Specific things to check:

Navigational limits, defining where the boat is covered. Coverage frequently ends at a defined distance from shore or outside specified waters.

Lay-up periods, when the boat must be out of the water, during which coverage may be restricted.

Wreck removal, which can be a substantial liability and is not always included.

Fuel spill liability, which is a real exposure and legally significant.

Uninsured boater coverage, analogous to uninsured motorist coverage.

Agreed value versus actual cash value on the hull.

Larger vessels are typically written on marine policies with different terms again, and yacht policies operate under maritime law principles.

Recreational vehicles

Motorhomes need auto-style coverage for driving plus home-style coverage for the living quarters and contents.

Travel trailers and fifth wheels are towed, so liability while towing generally falls under the towing vehicle's policy, while the trailer itself needs physical damage and contents coverage.

Specific coverages worth having:

Full-timer coverage, for people living in the vehicle, which adds liability and contents coverage analogous to a homeowners policy. Standard RV policies assume recreational use and exclude full-time occupancy.

Vacation liability, covering incidents at the campsite.

Emergency expense coverage, paying for accommodation if the vehicle becomes uninhabitable while travelling.

Total loss replacement, paying for a comparable new unit rather than depreciated value within a defined period.

Attached accessories, including awnings, satellite equipment and solar installations.

The general principle

Each of these categories has a specialist market, and the specialist products are usually both better and cheaper than trying to force the vehicle onto a standard policy.

Use an agent who writes the specific type, since the coverage details vary and a generalist may not know what to ask.

And read the use restrictions carefully. Most of the claim problems in these categories arise from using the vehicle outside the terms the discounted rate was based on.

General information about insurance products, not insurance advice. Coverage forms, restrictions and availability vary by insurer and state. Consult a licensed agent experienced in the relevant vehicle type.