Before you buy boat insurance, you need to know these five things.
You must have watercraft coverage if you own a boat.
Too often, people don't realise that their boats need insurance. Some people don't even know that coverage is available for boats. Many people know it's available and think about it, but they decide they don't need this kind of coverage. Most of the time, they're wrong! You do need boat insurance, and when you start shopping for it, you need to know what to look for.
Before you buy boat insurance, you need to know these five things.
- A lot of states now require you to have liability insurance for your boat.
This insurance should protect you if your boat hurts other people or their property. The insurance should also cover losses caused by theft, vandalism, storms, fire, tipping over, getting stuck, sinking, exploding, and hitting something. Call your insurance agent to find out what your state requires and what their boat insurance covers.
- You should strongly think about getting extra coverage.
One type of coverage you should think about is Wreckage Removal coverage. Most places require the removal of sunken or wrecked boats, and the owner is responsible for paying for this removal, which can be quite expensive. These costs will be taken care of by this optional coverage. You should also strongly think about getting insurance that will pay for repairs and mechanical problems, as well as insurance that will cover the cost of towing you back to shore if you need it.
- Not every insurance company will cover everyone who drives the boat you are insuring.
It is essential that you ask about this. Find out who is covered when the boat is being driven. For the quoted rate, some insurance companies will only cover the boat owner as the operator. The rate could go up to cover people who run the business besides the owner. Make sure the insurance agent spells out clearly who is covered to drive the boat.
- Most boat insurance companies give discounts to people who have taken boat safety classes.
Each insurance company, however, will only give the discount for certain courses. Find out which course your insurance company will accept, and make sure you take and pass the course. This will save you quite a bit on your insurance premiums, and you need the safety course anyway. Find out if there are any other discounts you could get. If you don't ask about discounts, most insurance companies won't tell you about them.
- Most of the time, you'll get the best rate from the same insurance company that covers your car and home, but not always.
When you are looking for insurance, call your current insurance company first. Then, call other insurance companies to see what kind of rates you can get. Even though it's easy to get quotes online, you shouldn't actually buy your insurance there. Instead, call and talk to an agent or ask them to call you. Keep in mind that insurance companies are in competition with each other, and they will work with you to get your business. Tell each one the lowest price you've been offered, and ask if they can do better.
Think about how much you've put into your boat before you go shopping for insurance.
Boats don't come cheaply! It's also not cheap to fix or replace boats. Make sure you have the insurance you need to protect you in case your boat is lost or stolen.
