10 Things You Should Know About Boat Insurance

Maybe you just purchased a boat, or maybe you are a seasoned veteran; Either way it is difficult to navigate the waters of boat insurance. Understanding these 10 boat insurance topics will help assure that you have the proper coverage at a competitive price.

  1. Boat insurance, much like automobile insurance, boils down to property and liability insurance.  Every boater should have liability insurance even if it is not required. Property loss insurance may be required if the boat is financed.
  2. Ask about discounts when you get a quote. Most agencies will over a discount if the insured operators have attended boating safety courses.  Some agencies may offer discounts if protective devices are used (IE: depth finders, burglar alarms, etc)
  3. Boat insurance is not required in some states. Some lakes require insurance even if the state does not. Fishing and sport competitions may also require insurance.
  4. Know your limits. Liability limits are your choice. The average price of a boat in 2009 was approximately $30,000. The average was based on a high price of $250,000. Boat prices can go much higher. The average liability minimum for fishing and sport competitions is $500,000
  5. Know what is included in the policy and what is optional. Some polices may include the following: Wreckage Removal, Emergency Expense Reimbursement, Uninsured/Under-insured boater, Equipment Replacement, Pollution Cleanup, Water Skiiing liability.
  6. Liability insurance only covers named operators. Make sure to include family members and/or friends that may operate the boat as named operators in the policy.
  7. Boats are commonly insured on the agreed upon value of the boat. Insurance agencies that specialize in boat insurance are very good at determining the value of your boat. Research your replacement cost for an equivalent boat in used condition to determine the value you will agree upon.
  8. Shop around. It is always a good idea to get insurance quotes from multiple companies. There is no standard price for insurance. Every company utilizes its own unique algorithm to determine premiums.
  9. There is no average boat insurance cost. You should expect to pay at least $200/year. Premiums can vary depending on what you cover, the value of what you cover, your location, the type of boat, your age, and your credit.
  10. Ask around. Make sure to ask other boaters about their insurance. Other boaters can provide valuable information regarding difficult insurance companies or coverage tips.