If you are planning to purchase a boat, you may want to consider getting boat insurance. Typical boat insurance policies cover only physical damage to your boat itself. They typically do not cover thefts or other accidents and may have different deductibles than more comprehensive policies. Your insurance company will likely offer some additional, optional insurance coverage for boat accessories and boats. Before buying any boat insurance, however, be sure to carefully consider how much coverage you need.
A common misconception about boat insurance is that it is required. In actuality, it is only a preference. For instance, in coastal areas where flooding is a risk, state law requires insurance coverage, but it is usually very cheap.
When you decide on a particular amount, you can easily shop around and compare quotes. Comparing boat insurance quotes is easier than ever, thanks to the internet. In the past, people had to call brokers or call one company to another to get started. Now, you simply have to fill out a form. It is as easy as pie.
Coverage and Prices
The type of boat insurance coverage you choose depends on how much you will be paying. If you only have a few hundred dollars, you should probably not worry about having an extensive policy. But if you have a boat that is worth more than a few hundred dollars, you might consider getting an even more comprehensive insurance policy. Depending on the value of your boat, you may want to consider getting a policy that covers all of the value – even if it is less than the current market value.
Other types of boats also qualify for boat insurance discounts. You may be able to save money on your premiums if you own a catamaran, sailboat or powerboat. Each of these boats is typically covered by separate policies that cover just the vessel itself, or just the towing and damage coverage. Towing and damage coverage usually applies to bigger boats and are not available with the bareboat policy.
If you have an old boat that is not worth as much as it used to be, you might want to consider dropping the collision and comprehensive coverage on your home insurance policy. This will allow you to buy boat insurance at a lower price. Many times, home insurance companies will discount the price of a policy because it is older, as well. They will figure that you are probably not buying a new boat any time soon, and thus, will give you a break on your premiums.
Types of Insurance
If you have a luxury yacht that is a luxury boat, you can get started on your policy, as long as you have adequate health insurance. This will pay the cost of medical expenses if you get injured on the boat while under tow. It will also cover you if you get injured off the boat while being towed. You can drop the personal injury part of your policy if you so choose, but remember to get started on your policy immediately before you add the yacht to your policy. It is better to have the peace of mind of knowing you have a personal yacht insurance policy, which is specifically designed to cover personal liability in the event of an accident.
The final type of boat insurance covers depreciated value. If a certain amount of time has elapsed since you bought the boat, the insurer will agree to pay you the current market value for the boat, less the agreed amount value. This means that if you were to sell the boat today, the insurer would pay you about seventy per cent of what you paid for it. Of course, this is subject to depreciation and fluctuation, which is why you should check with your insurer to find out what it will pay out at a given point in time.