Comparisonsmaster
Boat Insurance: Everything You Need To Know
Related Topics (Sponsored Ads):
If you also want affordable boat insurance policies, you can get boat insurance quotes informing you about the best boat insurance plans in your vicinity.
If you also want affordable boat insurance policies, you can get boat insurance quotes informing you about the best boat insurance plans in your vicinity.
Types of boat insurance
There are two basic types of boat insurance: agreed value and actual cash value. The way both policies handle depreciation is the difference between them.
An “agreed value” policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for the boat’s total loss (some partial losses may depreciate).
“Actual cash value” policies cost less up front but factor in depreciation. In other words, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss.
Eventually, as your boat ages, your insurer will likely insist on an actual cash value policy, and if often gives substantial savings.
Obviously, you can get more money from the agreed value policy; but you should go for the more affordable actual cash value policy if you can’t afford it.
Different types of boat insurance coverages
Boat insurance coverage simply means the part of your boat that is insured. Different insurance policies cover different types of damages. Examples of some prominent ones include:
Liability Coverage
Liability coverage pays for the damage incurred if you’re involved in an accident with another watercraft. It will also pay for damages you cause to structures such as docks.
Medical payments coverage
If you and the passengers on your watercraft get injured in an accident, medical payments coverage pays for the hospital bills, medications, and tests.
Uninsured watercraft coverage
What would happen if an uninsured boater collides with your watercraft and you or one of your passengers are injured? The uninsured watercraft coverage on your boat insurance policy may help pay for the resulting expenses.
Other types of coverage include:
● Boat trailers.
● Boat accessories (for example, radar or geo-location instruments).
● Special equipment (fishing gear, for instance).
● Towing coverage.
You may also want to look into whether your policy includes coverage to help pay for the cost of fuel spills or wreckage removal if there’s an accident on the water.
Insurance Discounts
There are a few ways to reduce your boat insurance costs. For example, if your boating is restricted by seasons and your boat is in storage during the winter, you can get deductions for winter layup.
Many insurers offer discounts for good driving records and for anyone who has completed boater education classes.
Finally, it usually costs less to be insured in freshwater versus salt, so be sure to discuss where you boat with your agent.
You may earn extra discounts by bundling your coverage with the same company that insures your home and/or car.
Before you buy your new vessel, it’s a good idea to determine your insurance costs based on your needs.
The costs of boat insurance
The cost of most boat insurance policies depends on a lot of factors. Such factors include:
● The coverages, coverage limits, and deductibles you select on your policy.
● Where you will use and store the boat.
● The type and size of the boat you’re insuring.
A boat insurance gives you a calm mind when sailing on the waters. If you have a watercraft, talk to your local insurance agent about a boat insurance today.
