5 Helpful Tips for Buying Boat Insurance

Boats can provide a “boat load” of fun for everybody. It’s hard not to enjoy the feeling of being out on the water. Unfortunately, however, the odds of obtaining a boat are slim for most due to commonly high prices. Although most boats do cost quite a bit of money by themselves, people often don’t consider the ongoing costs of maintenance, storage, and insurance. Insurance, in particular, can be the most expensive ongoing cost of owning a boat, which is why choosing the right one is crucial.

Some home insurance policies could cover boat damage, but these often only cover damage up to one thousand dollars or ten percent of the insured value of your home. Because of this, home insurance policies are usually only good for covering boats that are too small or slow to reasonably need separate boat insurance. Liability coverage also isn’t included in home insurance policies, which means you would be responsible for any damages caused to other vessels involved in an accident.

Purchasing a quality boat insurance policy is essential regardless of what kind of boat you may own. The only boats that might not need to be covered by insurance are canoes or boats that are small, slow, or inexpensive. Emergencies can happen at any time, especially in unpredictable waters. Here are some tips that may help you while looking for a boat insurance policy.

1- Know the difference between “agreed value” and “market value” policies.

When you’re looking into boat insurance policies, make sure you understand the difference between “agreed value” and “market value” policies. Knowing the differences could change the amount of money you receive if your boat is destroyed in an accident.

“Agreed value” policies could get your more money in some cases, as this means the insurance company will pay up to the original value of the boat as determined by you and your insurance company at the start of the policy. “Market value” policies, on the other hand, will only pay the value of your boat at the time of the accident. Just like cars, boats start depreciating the second you start to drive them, which means the market value would most likely be far less than what you originally paid for it.

2- Invest in a policy you actually need.

Make sure you only purchase a policy that will truly benefit you. It’s easy to get lost in the complicated jargon of boat insurance policies. If you feel confused at any point of looking into an insurance policy, ask the company to explain things in simpler terms. Don’t make a decision unless you fully understand what the policy covers and know that only the things you need are included in the policy.

3- Shop around before making a decision.

Perhaps the most important thing to do while choosing a boat insurance policy is to shop around before making a decision. Different companies may provide various quality policies at different prices. The only way for you to know you are choosing the best deal is to compare policies from many different companies before deciding.

4- Know what your policy covers.

Make sure to educate yourself on exactly what your policy covers to avoid being unprepared when an accident happens. Most policies don’t usually cover things like normal wear and tear, defective machinery, damage done by sea creatures or other animals, or damage caused by mold, insects, or zebra mussels. Knowing what your policy does and doesn’t cover means less trouble for you when an accident happens. Knowing this information could also let you know whether or not a policy is right for you.

5- Research ways you can save money on your policy.

Another thing you should research is ways to save money on your boat insurance policy. There are many things you can do past shopping around, avoiding online quotes, and only paying for what you need. Some other ways you can save money on your policy include taking sailing or general seamanship classes, improving your automobile driving record and credit score, and upgrading your boat’s safety gear. Talk with your insurance company for more accurate information regarding ways you can save money on the policy they have provided you with, as some companies may differ from others.

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