Powersport Liability Coverage: Protects You if You Cause Injury or Damage
Operating an ATV, motorcycle, or personal watercraft carries risks. If you unintentionally cause harm to others or their property, liability coverage protects your finances from costly lawsuits or repairs.
When Powersport Liability Coverage Makes the Difference
Real scenarios that show exactly when and how liability coverage protects you.
Trailside Collision
Emily was out on her ATV with friends when she accidentally clipped another rider’s fender during a tight turn on a marked trail. Her liability coverage stepped in, covering the $1,200 repair to the other rider’s vehicle. Instead of facing an expensive out-of-pocket bill or an argument with friends, Emily only paid her policy deductible and their friendship was preserved.
Guest Injury at the Lake
James let a friend use his personal watercraft during a lakeside barbecue. His friend lost control and collided with a dock, resulting in minor injuries and damage to the property. Liability coverage handled the $5,600 medical and repair expenses. Instead of legal disputes or strained friendships, James’s only cost was the deductible, and the issue was quickly resolved.
UTV Accident with Bystanders
Samantha was driving her UTV on a designated off-road path when she lost control and accidentally struck a parked vehicle, which also injured a bystander. Her liability coverage paid $27,500 for medical bills and property repairs. Without proper liability coverage, Samantha could have faced overwhelming legal and financial consequences. Instead, she only paid her deductible and received ongoing claims support from her broker.
Everything You Need to Know About Powersport Liability Coverage
The complete picture: what's covered, what's not, and how to decide if you need it.
Powersport Liability Coverage (Plain English)
Powersport liability coverage is financial protection if you are found responsible for injuring someone or damaging their property while using your ATV, motorcycle, UTV, personal watercraft, or snowmobile. When an accident is your fault, this coverage pays those costs—medical, legal, or repair bills—up to your chosen limits. The key thing to understand is that it protects your assets and savings from lawsuits.
Key Details to Know
Liability coverage usually does not have a deductible, but it does have policy limits. If damages exceed these limits, you are personally responsible for the remainder. Coverage typically includes bodily injury liability (medical expenses, lost wages, legal fees) and property damage liability (repair or replacement costs for someone else's property). Confirm with your advisor whether guest riders are covered and under what conditions.
Liability Coverage vs. Other Coverages
Liability coverage is NOT the same as collision or comprehensive coverage. Liability pays for injuries or property damage you cause to others, while collision and comprehensive pay to repair or replace your own vehicle after accidents or non-collision losses like theft or weather. You typically need both to be fully protected, especially if you want your own powersport vehicle repaired after an accident.
Who Needs Powersport Liability Coverage?
You typically need this coverage if:
- You operate an ATV, motorcycle, dirt bike, UTV, snowmobile, or watercraft in Colorado or Utah
- You take passengers or allow others to use your vehicle
- You ride on public or shared trails, lakes, or roads
You might skip this coverage if:
- Your powersport vehicle is permanently off-road on private property with no outside riders or property risk
Limits and Options
Your coverage limit is the maximum amount your policy will pay per incident—choose higher limits for greater asset protection. Standard options start at $25,000/$50,000 for bodily injury and $10,000 for property damage, but higher options are available for more protection. Some policies offer additional coverages for guest riders or legal defense costs. Review your options and choose limits that match your risk tolerance and total assets.
What's NOT Covered by Powersport Liability
This coverage does NOT cover:
- Repairs to your own vehicle: Only pays for damages to others
- Injuries to yourself: Bodily injury is covered only for others
- Intentional acts: Causing harm on purpose
- Racing, stunts, or illegal use: Accidents during organized races or unlawful activities
For these situations, you'd need collision, comprehensive, or medical payments coverage.
Ready to Add Liability Protection for Your Powersport?
Now that you understand liability coverage, see how affordable protection can be with personalized quotes from 26+ carriers.
Your Local Coverage Experts
1,400+ customers trust our expertise to explain coverage clearly and find the right protection for their specific needs.
4.9/5 Stars
Google Reviews from real customers, just like you
97% Retention
Customers stay with us year over year over year
Independent
We work for you, not insurance companies
Local
Fort Collins owned & operated since 1992
How Liability Coverage Actually Works
Understanding exactly what happens when you file a liability claim—from start to finish.
The Claims Process
- Report the Incident: Contact your insurance broker as soon as the accident occurs. They will guide you through documentation and start your claim.
- Investigation and Documentation: Your insurer gathers witnesses, accident details, and damage/injury information. Photos, police reports, and statements are reviewed.
- Liability Determination: The insurer investigates who was at fault and what your policy covers. They negotiate directly with the other party or their insurer.
- Settlement: If you’re found liable, the insurer pays valid injury or property claims up to your coverage limit. You receive legal defense and advice if needed. You pay nothing out of pocket unless damages exceed your limits.
What You Pay
Your premium usually covers all liability costs—there’s rarely a deductible. Your premium is based on your vehicle type, usage, location, and chosen limits. Higher limits mean higher premiums but much greater protection. Make sure your limits match your risk exposure—you don’t want to risk your savings over an accident.
Timeline
Simple claims for property damage or minor injuries typically resolve in two to four weeks, while complex situations involving court cases or significant injury claims may take several months. Most customers find the process straightforward and supported by our expert brokers. The key is prompt reporting—the sooner you file, the faster your issue can be handled and resolved.
The Real Cost of Going Without Powersport Liability Coverage
Understanding the real financial impact: what you pay for coverage vs. what you risk without it.
Minor Property Damage
Annual Coverage Cost: $75
Scenario: You scrape another ATV while parking on a trail, causing $1,200 in damage.
Without Coverage: $1,200 out of pocket
With Coverage: $0 (your policy pays in full)
Protection Value: $1,200 saved in this incident alone
Guest Injury Accident
Annual Coverage Cost: $85
Scenario: A guest rider falls from your UTV and suffers a minor injury with $3,800 medical bills.
Without Coverage: $3,800 out of pocket
With Coverage: $0 (policy pays, no deductible)
Protection Value: $3,800 saved
Serious Liability Event
Annual Coverage Cost: $110
Scenario: You cause an off-trail crash that totals a neighbor's vehicle and injures a bystander—total damages $30,000.
Without Coverage: $30,000 (could lead to lawsuits or forced asset sale)
With Coverage: $0 (policy pays up to limit)
Protection Value: Up to $30,000 saved, possibly more
The Economic Reality
For most riders, liability coverage costs as little as $6 to $10 per month—less than a pizza or streaming subscription. One accident could cost $3,000–$30,000 or more, which could take years to recover from financially. The math is simple: liability coverage pays for itself if you ever need it, and can safeguard your financial stability in a serious incident.
4 Costly Liability Coverage Mistakes to Avoid
Learn from others' mistakes—avoid these common errors that can leave you unprotected when you need coverage most.
Choosing the State Minimum Limits
Many people pick the lowest legally allowed limits to save a few dollars. This leaves you responsible for large bills if an accident costs more than your policy covers. Instead, choose limits that protect your savings and future earnings. A few extra dollars a month greatly increases your financial safety net.
Assuming Guest Riders Are Always Covered
Some policies only cover named operators or exclude guest riders. If a friend borrows your vehicle and causes an accident, you might be on the hook. Always check your policy details—and ask your broker if you're unsure who is protected in your coverage.
Skipping Coverage for Off-Road Use
Thinking ‘private land’ or ‘off-road only’ means you’re safe? Accidents on trails or private property can still lead to lawsuits and property claims. If your vehicle ever leaves your property or others are involved, liability protection is still a smart move.
Thinking Liability Covers Your Own Damages
Liability coverage never pays to repair your own vehicle or for your own injuries. Many riders find out too late they needed collision or medical coverage for themselves. Talk to a coverage expert to fill in these gaps with the right add-ons.
Find answers to your most pressing insurance questions right here.
Explore Your Coverage Options
Discover the best insurance coverage tailored to your individual needs and protect what matters most.