Buying a boat is one of the top five investments you will ever make. It will be how you make memories in the water and bring home the trophy fish from an epic fishing trip. So, it stands to reason that you want to protect your new craft with an insurance policy covering everything. Here are some things you will want to consider to help you buy the best policy for your investment.
Know What Type of Craft You Own
There are a lot of different kinds of watercraft on the market. You need to know how your craft is classified regarding insurance. Some of the different types of craft include:
- Professional craft
- Personal watercraft
- Boat clubs
The classification of watercraft will determine what type of coverage you should buy. A sailboat will have different coverages than a fishing boat because each craft has unique features.
Choose the Type of Insurance Policy
There are typically three types of insurance that you can choose from. It is familiar to you that the type you choose will significantly affect the policy premium and coverage of the insurance product.
The most common type of policy is the agreed hull policy. This policy has an agreed value for the craft. The insurance company and the boat owner will agree on how much the boat is worth if it ever needs to be replaced. This type of policy is more expensive than the other types but can be beneficial when the boat is an expensive craft. This type of policy is usually written with replacement cost as an added benefit.
An actual cash policy places the boat’s value at market value in case of a total loss. The boat will decrease in value over time, which will be considered from one year to the next. This type of policy costs less than the agreed hull type and is typically more popular with boat owners.
The third type of policy is called a liability only. It will cover the bodily injury and damage to another person’s boat if you are responsible for the accident. This type of policy is a good choice for owners that still need to get a loan they are responsible for each month.
Understanding an All-Risk Boat Insurance Policy
This type of policy is the most comprehensive type of insurance coverage available. It is typically used for recreational crafts. It will cover many perils, such as fire, sinkage, theft, and vandalism. Some things are excluded from this type of policy. Damages caused by animals, freezing weather, and ice are not covered.
Considering the Add-Ons to Your Insurance Policy
For you to have the best coverage, there will be some things that you will want to add as additional coverage. The following items are available for an extra cost to the policy:
- Gas and fuel spills
- Uninsured and underinsured boaters
- Fishing gear
- Electronic add-ons
These items must be endorsed on the policy before coverage can be expected in case of a loss. Without coverage, there will be no replacement for these items.
Each of these endorsements can be added to the policy at any time. And if you decide that one or more of them need to be removed from the policy because they no longer apply, have your agent remove it from the policy, and your premium will automatically adjust.
Best Ways to Save Money on Your Insurance Policy
There are different ways that you can save on your insurance policy. Your driving record on the road drives a boat policy premium. It pays to avoid accidents and getting pulled over by law enforcement by obeying the posted driving laws.
You can also get a discount for taking a boating safety course. This course can be found online or with your local Coast Guard Auxiliary Office. You will learn the basic safety measures and laws of being a safe boater.
You can also save money by insuring your boat with your auto and home insurance company. A multi-policy discount is typically applied to people that insure more than one line of insurance with the same company.
Understanding Your Benefits
Various benefits come with having a boat insurance policy. You will have peace of mind knowing that no matter what happens out on the water, it will be covered financially.
To get started with getting a boat insurance policy, you will need to get a quote. By understanding the tips above, you will get the best coverage for the correct rate. Contact your local agent today if you have any questions about boat insurance. You will be given the time and care needed to make an informed decision about your insurance needs and you can know that your boat has the best coverage available.