How many different kinds of boat insurance are there?
You might be surprised to learn that there are different kinds of boat insurance when you go shopping for it. There are a lot of insurance companies that only offer one standard policy for liability coverage for watercraft. Other companies, on the other hand, offer extra coverage that you can buy. In fact, if you financed your boat, your lender may require you to carry certain optional coverage. You can add a number of different types of coverage to your policy.
The standard insurance is liability insurance for watercraft, which many states require. This insurance will cover you if you do something with your boat that hurts someone else or their property, whether you're transporting it or using it on the water. Again, this liability coverage is now required by many states, and each state has its own rules about how much you need to have. Check with your insurance agent to find out what you must have.
Your state may also require that you have medical payments coverage for your boat. This coverage pays for your and anyone else on your boat's medical bills up to a certain amount if they are caused by a covered accident. Even if you don't have to have this insurance, you should still think about it. Medical expenses are quite high. If you don't think you can afford this coverage, think about whether or not you could pay for your medical bills if you got hurt and didn't have it.
Removal of wrecks and pollution coverage should also be given a lot of thought. By law, if your boat breaks down or sinks, you have to take it away. You will be fined if oil or gas leaks into a lake, river, or the ocean, just like the big oil companies are when they have spills in the ocean. Without this coverage, these fines, removing the wreckage, and cleaning up any spills can be very expensive. Don't think that something like this won't happen to you.
You should also get insurance against boats that don't have insurance. This works the same way as uninsured driver insurance when you buy insurance for your car. If someone who doesn't have insurance or enough insurance hits your boat while it's out on the water, your insurance will pay to fix or replace your boat.
Coverage for towing and help should also be carefully thought about. Towing a boat back to land usually costs more than towing a car to a garage. Even more so when you are in the middle of the ocean! You should also ask about coverage to get your boat back if it breaks down or gets into an accident and keep it from getting worse. In fact, these costs do add up. Again, don't think that nothing bad will happen and don't think that you can't afford the coverage. If you can't pay for the insurance, you won't be able to pay for these costs, either.
Most policies should cover your boat, its motor, and the trailer you use to move it. Most of the time, liability insurance isn't the only kind of insurance you need. You should protect your boat just like you protect your car by getting insurance that covers theft, vandalism, storms, fire, sinking, capsizing, getting stuck, crashing into something, and even explosions. Talk to your insurance agent to find out what kind of insurance your state requires and what kind of coverage they can give you. Talk to your boat dealer and your lender to find out what kind of insurance you must have.
