Boat Insurance
Even if your homeowner’s insurance policy protects your watercraft against losses you still need boat insurance. This is because most homeowner’s insurance policies covering watercraft do not give adequate protection and most often contain physical damages. This leaves room for unexpected losses, as your watercraft will be only partially protected. Boat insurance provides full protection as per your needs and ensures your peace of mind. Most boat insurance companies/agencies provide boat insurance for almost all types of boats (such as ski boats, tow boats, bass boats, pontoons, deck boats, high performance boats and mini-jet boats etc). Similar to other insurance policies higher the deductible lower will be boat insurance premiums. Choose the deductible on your boat insurance very carefully. Do not select a very high deductible that your would not be able to pay simply to lower your boat insurance premiums.
Protective cover provided by boat insurance may differ from company to company and policy to policy. Most boat insurance companies provide most or all of the following covers; physical damage due collision, fire, or theft, medical payments to injured passengers and others, damage to other people’s property (including boats) and physical damage coverage to your trailer and accessories etc. Another important factor to consider before opting boat insurance is risk(s) covered. Various boat insurance policies may protect your boat against all or some of the following risk: sinking, theft, storms, fire, and stranding etc. Boat insurance policies also differ in the equipment they protect. Experts strongly recommend purchasing full coverage including losses to anchors, tools, engines, oars, extra fuel tanks, detachable canopies and seat cushions etc.
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The two most common types of boat insurance are agreed value and actual cash value.
- In agreed value boat insurance the insurance company undertakes to provide you full value of the boat insurance policy without any deduction or reductions. Total value of the boat protected however has to be mutually agreed on by both the boat insurance company and the insured.
- On the contrary actual cash value boat insurance deducts depreciation at the time of loss and often pays much less than face value of the boat insurance policy.
Discounts On Boat Insurance
It is a good idea to enquire about your eligibility for various discounts offered by boat insurance companies like you would for shopping for all other types of insurance policies. If utilized these discounts help lower your insurance premiums (potentially) saving you hundreds of dollars. Some of the most common discounts available on boat insurance are discussed below:
- If your boat runs on diesel fuel you are more likely to be eligible for a discount because it is decreased inflammability.
- A fire extinguisher on a boat may seem like an absurd idea. It can however help your qualify for a discount on your boat insurance.
- Having a ship to shore radio onboard can also help you get a substantial discount on your boat insurance.
- You are eligible for a multi-policy discount if you have purchased most or all of your insurance policies from the same company. Multi-policy discounts are very common in the insurance industry.
- If you have had boat insurance for a reasonable time period and have not filed a single claim you are eligible for a discount for being claims free i.e. having an immaculate claims record.
- People who have taken water safety courses offered by the Coast Guard, U.S. Power Squadrons, Red Cross and other recognized associations are also eligible or a discount on their boat insurance.
