6 Things to Know When Shopping for Recreational Boat Insurance
While boat insurance isn’t a requirement for recreational boat owners in every state, it’s usually well worth the investment. Boat insurance can protect your watercraft against damage, but it can also secure you against complication if the worst happens out on the water. Quality insurance can provide you and your passengers with medical care in the event of an accident, safeguard you against liability when another party is injured, and even help you acquire a loan or a docking spot with a marina. But not all insurance is created equal. We’re here to help you make an educated purchase with your insurance policy.
1. Compare Prices Online
There are a number of different insurance providers available, ranging from well-established and recognized general providers like Allstate and Geico to specialized insurers like SkiSafe and BoatUSA. Prices can vary wildly depending on the terms you need, but you can compare pricing with the Consumer Affairs tool.
2. Understand When Your Boat is Covered
Most boat insurance won’t cover you everywhere. Most plans offer a navigational warranty only in specific regions, and some international territories are excluded due to the high risk associated with them. Discuss the terms of the navigational warranty with your agent to make sure that the policy covers the areas you intend to travel.
3. Minimize the Cost of Your Policy
Home and auto insurance often offer incentive programs for low-risk members, and boat insurance is much the same. Many insurers offer discounts for owners who have taken nautical training classes, and you may be able to get a further discount during the months where your boat isn’t in use. Your insurer can provide you with the details on applicable discount programs.
4. Understand the Difference Between Agreed and Actual Value
When choosing your boat insurance policy, you’ll have the option of deciding whether your terms will be based on the “agreed” or “actual” value. An agreed value will scale payouts to the cost agreed upon regardless of the age of the vehicle, but the policy typically costs more. Policies that operate on actual value will take into account depreciation when calculating settlements made by your insurer.
5. Tailor a Policy For Your Boat
There are 15 different forms of boat insurance, and each comes with their features and price structure. After all, the insurance needs of a dinghy and a luxury yacht can be wildly different. Before you start shopping, investigate the specific terms regarding your class of watercraft. Also, consider specialized coverage you might need – like hurricane coverage and 24-hour assistance – before you sit down to discuss the terms with your agent.
6. Read the Terms Carefully
On the surface, boat insurance isn’t so different from auto insurance, but it comes with its complex language of terms. Don’t just assume that your insurance will work the way you expect. Read your policy meticulously before signing anything, and ask your agent for an explanation if you have any questions about the wording.
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