Powersports Insurance

The number of side-by-sides on county gravel in Pottawattamie and Harrison counties has grown every year since Iowa opened the roads to them in 2022, and the accident calls have grown with it. The pattern is consistent: the owner assumed the machine was covered under the homeowners policy. It was not, not once it left the property, and a $25,000 UTV with a teenager driving and a neighbor's mailbox in the ditch is not a conversation anyone wants to have with a homeowners adjuster.

Why doesn't my homeowners policy cover my ATV or UTV?

A standard homeowners policy provides limited liability coverage for a recreational vehicle used on the insured's own property. Once the machine leaves the property, is registered for road use, or is loaned to someone, that liability coverage no longer applies. Physical damage to the machine itself is not covered by the homeowners policy at all, on or off the property, beyond a small limit for motorized equipment that rarely applies. The machine stolen from the trailer at a campground, or rolled on a trail at Hitchcock Nature Center, is the owner's to replace.

A powersports policy addresses both halves: liability wherever the machine is operated, and collision and comprehensive coverage on the machine itself.

What does powersports insurance cover?

Liability. Injuries and property damage caused to others. Required for road use in both states (see below), and worth carrying even for a machine that never leaves the farm, because a guest who is permitted to drive it can sue.

Collision and comprehensive. Collision pays to repair or replace the machine after a crash or rollover. Comprehensive covers theft, fire, vandalism and animal strikes. For a UTV on a trailer in the driveway or at a campground, comprehensive is the coverage that pays when it is gone in the morning.

Medical payments. The operator's and passenger's injuries, regardless of fault. Rollover injuries are serious, and a high-deductible health plan makes this coverage worth carrying.

Uninsured and underinsured motorist. For road-legal machines, the same reasoning as a motorcycle: the driver who strikes a UTV on a county road may carry the state minimum or nothing.

Accessories and custom equipment. Winches, light bars, lift kits, tracks, plows, cabs and audio. Most policies include a small amount by default; tell us what is on the machine and we will schedule the rest.

Trailer. Physical damage on the trailer often needs to be added separately, here or on the auto policy. Liability while towing usually follows the tow vehicle.

Can I drive my UTV on the road in Iowa or Nebraska?

Iowa: Yes, with conditions. Since July 2022, registered ATVs and UTVs may operate on county gravel roads and on city streets where the city permits it, at 35 mph or less, by a licensed driver 18 or older, with headlights, taillights, brake lights, a horn and mirrors, and with proof of insurance on board, according to O'Flaherty Law's summary of the 2022 change. They may not operate on paved county highways or four-lane roads except to cross at an intersection. Council Bluffs and the surrounding towns each set their own street rules, so the local ordinance should be checked.

Nebraska: State law leaves the decision to cities and counties, and most that permit road use follow a similar template: a Class O driver's license, liability insurance at the state auto minimum of 25/50/25, lights, a safety flag, a speed cap near 30 mph, daylight operation only, and no travel on state highways. Papillion, Bellevue, Gretna and the towns across Sarpy and Cass counties each have their own ordinance, and some do not allow road use at all. Ask us or city hall before assuming.

For coverage purposes: a machine operated on the road in either state needs a powersports policy with liability limits, not a homeowners policy alone, and the proof-of-insurance card needs to be on the machine.

What machines do we insure?

• ATVs and four-wheelers
• UTVs and side-by-sides (Polaris, Can-Am, Honda, Kawasaki, John Deere Gator and others)
• Golf carts and low-speed vehicles, including street-legal models
• Snowmobiles
• Dirt bikes and youth off-road motorcycles
• Jet skis and personal watercraft, usually on a boat policy

How much does ATV or UTV insurance cost in Nebraska and Iowa?

Liability-only coverage on an older ATV that stays on the farm is often under $150 a year. Full coverage on a new $30,000 side-by-side that is driven on the road and taken on trips costs more, with the machine's value and its accessories driving most of the premium. Youth machines are inexpensive to insure, but carriers will ask the rider's age. The spread between carriers is wide on powersports, and bundling with auto and home usually reduces both.

Who handles powersports insurance at Smith Davis?

Our personal lines team at all three offices. Tony Rockwell, Personal Account Manager in Papillion, and the Council Bluffs and Logan staff quote powersports alongside auto and home. The Logan office, which joined Smith Davis with Warner Insurance Agency in 2020, writes a large number of these for Harrison County families who use them for work and recreation both. Smith Davis has been an independent agency since 1931 and represents multiple carriers that write powersports, including Progressive.

Frequently asked questions about powersports insurance

My child rides the four-wheeler. Is he covered?
If the machine is on a powersports policy, a family member riding with permission is covered for liability, and medical payments covers his injuries. A homeowners policy may or may not respond depending on where he was riding. Put the machine on a policy.

We use the UTV on the farm. Does the farm policy cover it?
A farm policy can cover it for farm use, and sometimes for incidental personal use. Road use and recreational trips off the farm usually need to be added or written separately. Tell us how it is actually used.

Does the policy cover the UTV while it is on the trailer?
Comprehensive on the powersports policy covers theft of or damage to the machine on the trailer. The trailer itself needs its own physical damage coverage.

What about a golf cart in a neighborhood?
If it leaves the lot, it needs liability. If it is street-legal (a low-speed vehicle with a VIN, lights and seat belts), it may need to be registered and insured like a car, depending on the city. We will sort out which applies.

How do I file a claim?
Call the carrier's claims line, photograph the scene, gather the names of anyone involved, and call us at (712) 322-1600 or (402) 331-7526 so we can follow it.

About the Author

Jeff Brehmer, CIC, CPIA, is President and Owner of Smith Davis Insurance, an independent insurance agency serving Southwest Iowa and Eastern Nebraska since 1931 from offices in Council Bluffs, Papillion and Logan. He can be reached at (712) 322-1600 or service@smithdavisins.com.

Last Updated: October 2026

Sources

• Iowa ATV/UTV road-use law (2022): O'Flaherty Law
• Nebraska local UTV ordinance template (license, 25/50/25 liability, equipment): City of Aurora, NE UTV requirements