Specialty Auto Insurance Policies

When a traditional auto insurance policy fails to meet your unique needs, it might be time to consider specialty coverage. Specialty car insurance policies cover specific types of vehicles, such as farming insurance, or offer coverage for a limited period of time, such as seasonal auto insurance. We’ve summarized four of the most common types of specialty auto insurance coverage below.

Seasonal Car Insurance

For the most part, seasonal auto insurance applies to the business car insurance market, but it may also apply to individual policyholders as well. A seasonal business is one that operates only during certain times of the year, which consequently affects the company’s insurance needs. For example, snow plow insurance and ice cream truck insurance would need seasonal business vehicle auto insurance.

The type of seasonal coverage that is right for your business depends primarily on what you intend to do with the insured vehicle during your off-season. If you plan to use the vehicle for personal driving during the off-season, you will need to let your insurance company know. Doing so will lower your premiums because you will not be performing any business duties with the vehicle. On the other hand, if you only plan to store the vehicle during the off-season, you should remove all coverages from your specialty policy except comprehensive. Comprehensive coverage will protect the vehicle from things like falling objects, vandalism, hail, and theft while it is in storage. Do not cancel your policy entirely during the off-season, as this will result in an interruption in coverage that will have financial penalties in the future.

Limited Use Auto Insurance

Limited use auto insurance is similar to classic or historical auto insurance in that it protects vehicles that are rarely driven. Unlike classic car insurance, however, the vehicles that qualify for limited use coverage do not have to meet certain age requirements. With most carriers, the primary qualification criterion for limited use car insurance coverage is minimal annual mileage—typically 2,500 to 5,000 miles. If the policyholder exceeds the mileage limit set by the carrier, the limited use policy may not be renewed.

The insured vehicle may also not be used for normal driving purposes. In other words, you cannot use a vehicle covered by a limited use policy to drive to and from work or school. Additionally, the vehicle cannot be used for business purposes and must be stored in a very specific location, such as a fully enclosed garage, every night.

Recreational Car Insurance

Recreational insurance covers non-traditional vehicles primarily used for recreational purposes. Examples of recreational policies include ATV/quad insurance, RV insurance, boat insurance, travel trailer insurance, golf cart insurance, and snowmobile insurance. A typical recreational auto insurance policy will offer collision and comprehensive coverage with the option of liability coverage. In some states, certain recreational vehicles are required to have a certain amount of liability insurance when driven on state-owned lands, for example. Regardless of the type of recreational vehicle that you have, it’s important to at least carry physical damage coverage because your homeowner’s insurance policy most likely will not cover it if anything happens.

Farming Insurance

Damage to farming equipment can put the success of your farm on hiatus indefinitely; farming insurance will see that this does not happen to you. Also known as farm equipment insurance, farming insurance provides comprehensive coverage of valuable items on your farm. Examples of covered items might include pumps, heating and cooling systems, production equipment, boilers and water heaters, electrical distribution systems, tractors, and more. A general farm and ranch insurance policy, however, is different from a farm equipment policy in that it more closely resembles a home insurance policy. Farm and ranch insurance protects the structure of your farm and your livestock rather than your farming materials and equipment.