The Ins and Outs of Boat Insurance: Everything You Need to Know
Boat owners know that there isn’t anything better than feeling the brisk wind brushing past your face while the warm sun keeps you feeling toasty on the open water. Any memories you make on your boat are sure to be special, which is all the more reason to ensure that your vessel is protected for years to come.
You may have considered boat insurance at one point or another, especially if it isn’t required in your state, only to decide that it wasn’t worth it. However, boat insurance can offer affordable protection against the unknown, making it an excellent investment decision.
What is Boat Insurance?
Similar to a home or car insurance, boat insurance is a policy that helps cover a motorboat, sailboat, or another type of personal watercraft if it is stolen, damaged, or in an accident. This insurance can also provide financial coverage if you are liable in an accident or caused injuries of someone else in a boating accident.
Boat insurance may stipulate certain parts of the boat that are covered and certain parts that are not. Most often, the machinery, permanently attached equipment, hull, fittings, and any furnishings are all covered under boat insurance.
Is Boat Insurance a Legal Requirement?
Boat insurance is not a legal requirement in most states. Currently, Arkansas, Hawaii, and Utah are the only states that require a person to have boat insurance. However, if you plan to dock your boat or finance it instead of purchasing it outright, the lender or marina owner will most likely require you to purchase coverage.
What is Covered Under Boat Insurance?
In most cases, there are four primary subcategories to boat insurance that will be covered when you’re out on the water:
Property Coverage
The primary coverage that is covered under boat insurance is property coverage. This protects a boat and other watercraft from damage that may have occurred due to an accident. It can also help cover costs if your boat was stolen and is usually active regardless of if the boat is on land or water. In most cases, policyholders choose actual cash value coverage or a pre-agreed-upon amount for their coverage.
Liability Coverage
This form of insurance covers the event where you cause an accident that damages another person’s property. You will not be required to pay for all of their repairs out-of-pocket.
Medical Payments Coverage
If a person was injured after an accident that occurred on your boat, medical payments coverage will help provide financial assistance for costs related to hospital visits, surgery, x-rays, and more.
Uninsured Watercraft Coverage
Finally, if you are hit by a boater who does not have insurance, this level of coverage may provide assistance in paying for the expenses that come as a result.
In addition to all of the above, those looking to take on insurance for their boat can also choose from many add-ons that offer coverage for boat trailers, accessories, special equipment, towing coverage, and much more.
What Does Boat Insurance Not Cover?
While accidents, theft, and events beyond your control are covered under boat insurance, there are a number of situations where your insurance won’t come into play. Most notably, boat insurance is not applicable to:
- Regular wear and tear from using the boat
- Corrosion
- Overuse of the boat
- Destruction as a result of bugs
- Mold damage
- Damage sustained from oceanic creatures
- Fault boat design from the manufacturer
How Much Does Boat Insurance Cost?
Even if it isn’t required in your state, boat insurance cost is so low at an average cost of $200 to $500 a year that there’s really no reason not to have coverage. Depending on the number of add-ons you choose, this price can increase quite drastically, but basic insurance won’t usually go beyond the average cost.
Common Factors that Can Influence the Cost of Boat Insurance
There are a number of factors that can influence your current and future cost of boat insurance, which are important to keep in mind as you start to evaluate potential providers. The factors most commonly affecting boat insurance rates are:
- Past claims on the boat
- The age of the boat
- The engine type
- The overall value of the boat
- Where the boat will primarily be used at
- The ownership record of the boat
- The level of experience that a boater has
- Where the boat will be anchored or stored
- The size of the boat
- Any add-ons you choose
While having all the bells and whistles with your insurance policy is great, even having just basic level coverage can save you thousands of dollars in the event of an accident. You can’t control everything, and boat insurance makes sure that you aren’t held financially liable for those events.
Tip for Finding the Best Boat Insurance Rates
As you start to find the boat insurance rates in your area, there are a number of factors to consider to ensure you are getting the best day. Use the following steps to make sure you get the best rate:
- Evaluate your boat and determine the specific coverage level you need based on your area
- Research all potential policy providers to see past reviews
- Ask for quotes from multiple providers in order to compare who offers the most for the least
- See if any providers offer certain discounts or incentives that make paying a higher price worth the cost
Even if you are paying far more than the average price for boat insurance, you can rest easy knowing that you are protected out on the water.
Protect your vessel today
With the average price of boats hovering in the tens of thousands, the last thing your wallet needs is extreme damage occurring to your vessel that needs to be repaired for a high cost. By investing in boat insurance, you can save time and money on theft, damage, or other accidents. Take the steps to protect your boat so that you can keep making special memories out on the water.
