What happens when your boat gets sick? You take it to the doctor. And when you do, you’ll want the best boat insurance for your situation. Owning and operating a boat isn’t always smooth sailing, so we’ve put together this summary of what you need to know before collecting a boat insurance quote. Our efforts to help you learn boat insurance regulations before you find yourself in the creek without a paddle are intentional, like our bad pun on boats .
In this article we will cover:
Is boat insurance mandatory?
What do Arkansas, Hawaii and Utah have in common? Surprisingly, they are the only states that require a boat insurance policy. This doesn’t mean you can always get away with free policies in other states; There are cases where you will need a boat insurance policy. For example, if you dock your boat at a marina, the marina will typically require an insurance policy. This makes a lot of sense; Your coverage also protects their other customers. Or if you’ve financed your boat, you don’t technically own it yet. Your finance company will require boat insurance to keep you out of financial trouble long enough to pay off your loan.
Mandatory or not, you should at least consider getting boat insurance. Even if you’re willing to gamble with the possibility of theft or an accident, there are other risks including liability issues that can quickly spiral out of control and land you somewhere. between the devil and the deep blue sea. Okay, that’s the last pun.
What types of boat insurance policies are there?
Just as you wouldn’t expect to buy the same insurance policy for your car, motorcycle, or heavy truck, there are different types of boat insurance for different types of watercraft. This makes sense because there are varying degrees of risk and exposure depending on the size, value, and usage of anything that floats on the water.
It should come as no surprise that a boat insurance policy for a smaller boat will differ from a yacht, which is generally defined as 27 feet or larger. These larger boats typically travel longer distances and are exposed to harsher elements and for longer periods of time. So it stands to reason that these boats will need extra protection. There are also boat rental policies and boat clubs that cover a variety of drivers from time to time. And there are policies in place for professionals such as professional anglers, fishing guides and charter captains. In fact, if you own and operate a rental boat, you need to consider a commercial policy that adequately protects your property, passengers and crew.
What does boat insurance cover?
Think about car insurance, but for floating cars. Boat insurance covers you in different situations, so you buy the ones you want to cover.
Liability insurance get you out of danger in case your boat damages another boat or causes damage to someone else’s property. Coverage may even cover wave damage caused by your boat. And the bigger your boat, the more likely it is to happen.
It is important that liability insurance indemnifies you for costs related to injury to others incurred in an accident – both medical costs and legal costs if legal action is taken as a result of the accident. problem. Note that we said “injurious to others.” Maybe you will need Medical payment insurance for your own injury, or an injured passenger.
Property insurance will cover theft as well as damage caused by boating accidents. This coverage usually covers accidents on land or in water. It might even cover you with a boat that goes underwater, so you won’t be in the water at checkout.
Most policies will cover permanently attached equipment such as anchors, paddles, and seat cushions. But remember, like auto insurance, boat coverage will exclude normal wear and tear, scratches and dents, design defects, etc. And like other forms of insurance, you’ll have You can choose between cash value or replacement cost coverage in the event your boat is stolen or cannot be repaired.
Many boaters focus on fun rather than insurance or safety, so you’ll want to consider Uninsured watercraft insurance also. This will protect you in the event an uninsured paddler crashes into your boat – whether the result is damage, medical bills or both.
Finally, there are miscellaneous insurance items. You may have heard the saying that a boat is a hole in the water that you throw your money in? Or there are people who will remind you that BOAT stands for Break Out Another Thousand. Either way, it’s likely that you’ve spent a decent amount on items that make boating possible, like a trailer, or more fun, like fishing gear. You will want to investigate the coverage for these items.
Especially if you’re using your boat for fishing, you’ll want to cover your expensive fishing gear, depth detector, and radar equipment. In fact, add-ons that include fishing gear may even include reimbursement fees for fishing tournaments. They think about everything, which means you’ll want to be thorough and thoughtful about your needs as well. This doesn’t mean you should be stuck, snagged, and sunk for every policy option on offer, but you’ll want to match your insurance needs to your sailing lifestyle. .
What is not covered by the boat?
Nearly all boat insurance policies will exclude something. The most common examples include wear and tear from frequent boat use. Just as you can’t claim your old car that’s old, you can’t claim a boat that’s aged and worn out. Remember, insurance covers accidents and surprises; not the slow decline of a product over time.
Likewise, a policy is unlikely to cover damage that occurs over time due to fault, corrosion, or mold. Policies also have the ability to exclude manufacturer defects or design defects. It’s between you and the manufacturer.
What is the cost of boat insurance?
The cost of a boat insurance policy depends on many factors, just as the cost of a boat depends on many factors. But you can find the answer by asking yourself some questions. For example:
- Where will you sail? For example, a local freshwater lake relative to the Atlantic Ocean. For some insurers, whether you live in a state with a coastline makes a difference, as does the length of your sailing season. A shorter season means you have less time to get in trouble.
- What experience and training do you have? It makes a difference whether you are a first-time owner or a certified, long-time boat owner. Safety training and other certifications are an affordable way to reduce your insurance costs.
- What is your driving record? This includes your sailing record, if you have one, as well as your usual driving record. Drivers who abuse the road tend to behave the same way on the water.
- How much liability insurance do you need? Of course, you will pay more for more coverage.
- What kind of deduction are you looking for? Just like with health insurance, your premium is determined by whether you’re covered for a low deductible or a high deductible, such as what you find for a disaster plan.
- What is the value of your boat and equipment? Of course, the cost of insurance for a yacht is higher than for a jet ski. Like cars, there are cheap boats and expensive boats, old boats and new boats, even old boats that are considered vintage but still hold the same value as new boats. You’ll want to know the value before diving into your insurance needs.
If you search online for the average cost of a boat insurance policy, you’ll see a range of $200 to $500 a year. It is a reflection of the average boat size and situation of all insured boat owners. However, you will find that for more expensive watercraft, insurance can cover 1% to 5% of the value of the boat. As a result, a policy for a yacht or yacht worth half a million dollars can cost between $5,000 and $25,000.
