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Summer Fun Can Open You to Serious Financial Liability!

August 6, 2015

Do you and your family love summer sports? Do you go on group outings with other families to ride in the dirt or sail on the water? If yes, you may be at risk of pricy bills and lawsuits.


It seems like a natural thing to let your buddy take a spin on your motocross bike. Or if they aren’t up to taking the wheel, you just take them for a spin riding behind you. Unfortunately, whatever precautions one takes, accidents still happen. The issue becomes who pays your friend’s medical bills if the worst happens? Your insurance company pays, right? Not necessarily.

Unlike your car, which is typically insured for passengers automatically, other types of vehicles are not insured in the same way. Lending your motorcycle, Jet Ski, quad, boat or other sports vehicle out to another driver isn’t covered under most carriers’ policies. Even when you’re the driver, your insurance may not cover a passenger.
In the insurance industry, these are two very separate scenarios with two different solutions.

  • Insurance for carrying a passenger is called “guest liability” coverage.
  • Lending your sports vehicle to another driver is usually covered under an umbrella coverage, which can very inexpensively add a great deal of coverage to your existing policy.

While researching this topic, I came across blog threads in which most participants had never heard of this hole in their coverage. Neither of these coverages are tricky or expensive. The true danger is in not knowing they are necessary.

Check with your insurance agent to make sure your current policy covers these situations.
For more helpful insurance tips written by independent agents, you can subscribe to the Avanti Reader via RSS or follow us on Facebook or Twitter (@AvantiInsurance). As always, thanks for reading.

Then get out there and have fun!

By E.A. Cooke


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