How Much Does Boat Insurance In Ontario Cost
Next to how much it would cost to fully replace or repair your watercraft in the event of disaster or having to foot the bill of a lawsuit alone, it is a small price to pay for boat insurance in Ontario.
- On average, boat insurance in Ontario will cost between $300 and $600/year.
- This means you will only have to pay between $29 and $50/month.
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Is Pontoon Insurance Required
If you finance the purchase of a pontoon boat, your lender is likely to require you to purchase collision and comprehensive coverage. Most states do not require insurance on pontoons, but some may require some level of liability coverage when the pontoon is on the water.
Be sure to learn about the laws in your state.
The Intended Use Of The Boat
A boats intended use can also determine how much the insurance company will charge a boat owner. This is especially true if the boat is being used for commercial purposes.
For example, a commercial fisherman or lobster hunter will usually pay a lot more for insurance than a person who uses their boat recreationally.
This is especially true if the person is using their boat as a charter or ferry boat.
Even the types of activities on the boat can affect the pricing of the insurance policy. For instance, a tour boat that serves alcohol will have a higher risk profile than a boat that does not.
In this case, the boat owner may have to add additional insurance riders onto their base plan.
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What Boat Insurance Policies Cover
How and where you boat determines the type of coverage you need. An “all risk” policy will offer the best protection. However, an all risk policy does not cover every type of loss. In insurance terms all risk just means that any risk not specifically omitted in the policy is covered. Typical exclusions include wear and tear, marring, denting, animal damage, manufacturers defects, design defects, ice and freezing.
You may also be able to add extra coverage. Available options may include: medical payments, personal effects, uninsured boaters liability, and towing and assistance. Most policies will cover permanently attached equipment, as well as items like anchors, oars, trolling motors, tools, seat cushions, and life jackets. Be sure to discuss these options with your agent.
Will A Pontoon Boat Hold Its Value
When purchasing a pontoon boat, you have to remember that youre making an investment. At some point, you may decide to sell your pontoon boat. If youre going to do this, youll want to get a good portion of your money back.
As a result, you need to make sure that your pontoon boat is going to maintain its value over time. If it doesnt, you wont get your money back.
Unfortunately, pontoon boats are similar to automobiles because theyre going to depreciate. Buying a high-end pontoon boat ensures that itll be worth more in the future, but it is still going to lose its value. If you buy a low-end boat, it is going to lose more value quicker.
It is common for pontoon boats to decrease by as much as 25 to 35% in value over the first year of ownership. It is often a good idea to purchase a used boat since it has already depreciated in value.
Buying a boat that is a few years old can save you a lot of money. Either way, youll want to consider your options and always remember that the boats value will drop over time.
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The Location Of The Boat
Some areas of the world are more dangerous to boat in than other areas. The insurance plan you get will reflect this reality.
For instance, a person using their boat off the coast of Alaska is far more likely to suffer damage to their boat than someone who uses their boat in a sheltered inlet in New Jersey.
Even the areas that the boat will be driven through can change the cost of insurance. For example, a boat owner in Philadelphia who uses their boat in New Jersey will have to drive through the city to get to their destination.
This increases the chances that the boat will be in an auto accident and thus increases insurance costs.
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Example Average Sized Pontoon Boat Insurance Costs
I am going to firstly give you an example of what I would call a reasonably average pontoon, which is actually the one I own a 22 foot 2012 Sweetwater 200.
- Basic Insurance costs $8 per month: This only covers for liability and any damage that you cause to others. The pay-outs would be around $50,000 per person, and then up to $25,000 when you damage boats or other property.
- Comprehensive Insurance costs $29 per month: Just like your car insurance, this will cover almost any eventuality. The pay-outs significantly rise to $100,000 per person, and a $50,000 limit on property damage. The quote I received will also pay for medical care up to $5,000 and will cover accidents with un-insured boaters.
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Average Cost Of A Used Pontoon Boat
Used pontoon boats, much like new pontoon boats, vary widely in cost. An older, no-frills boat that can accommodate only a handful of passengers can be purchased for as low as $10,000- 15,000 if you find the right seller. You could certainly find a boat under that price range, but itd likely need a significant amount of work and money to get it into shape for the water, so you might be better off investing a bit more at the outset.
Types Of Boat Insurance
There are two basic types of boat insuranceagreed value and actual cash value. How depreciation is handled is what sets them apart.
An “agreed value” policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat .
“Actual cash value” policies cost less up front, but factor in depreciation. In other word, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Eventually, as your boat ages, your insurer will likely insist on an actual cash value policyand if often gives a substantial savings.
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Whatdoes A Typical Boat Insurance Policy In California Cover
One thing to remember when comparing insurance providers in California is that the coverage varies from one policy to another. This is why you have to spend time comparing all your options and try to customize your plan based on what you think will perfectly suit your requirements.
Figure out what you need exactly based on your specific situation and circumstances. To help you, here are some of the things often covered in a good insurance policy for boats in California.
A lot of boaters also consider these things as necessary:
Medical Cost A good boat insurance plan will most likely cover a part of the medical expenses linked to boating injuries. This is in case someone gets injured in an accident while in your boat caused by you or anyone who is in control of it.
It covers a chunk of the total medical cost in case you or anyone in your boat got hurt in an accident caused by someone else. It is necessary, especially if those involved did not get insurance for their boat.
Property Damage Your insurance policy will also most likely cover property damage caused by your boat to another vessel or to itself. It will prevent you from paying for the damage using your own bank account. The reason is that your insurance provider will cover any required repairs and/or replacements.
Withall the mentioned things covered, you can enjoy boating in California withpeace of mind since you know that you are insured in case of any untowardcircumstances.
What Is Boat Insurance
Boat insurance is a contract between you and an insurance carrier that protects you from financial loss in the event of a boating accident or natural disaster that damages your boat. Boat insurance for larger vessels typically has restrictions as to what it will cover and where in the world the coverage applies. Boat insurance is for vessels that have a motor and is not for canoes or small paddle boats.
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Are There Discounts For Pontoon Insurance
The most common way to get a pontoon boat discount is by combining your coverage with your auto and/or homeowners insurance. You can also qualify for discounts if you:
- Have a claims-free insurance record
- Have a clean driving record
- Have experience with a pontoon boat
- Have taken a boater safety training course
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Do You Pay Tax When Buying A Used Boat In Ontario
Boats are registered by the purchaser at Transport Canada federal government offices. Transport Canada does not collect tax from the purchaser at time of registration. Boats purchased outside Canada may be subject to the 8% Ontario portion of the HST .
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What To Look For In Potential Pontoon Insurance Providers
Please make sure to set aside the time to perform an in-depth search of the insurance market so that you can get the best insurance deal for your pontoon, plus a lot more benefits in the process. I am often pleasantly surprised each time my insurance comes up for renewal just how many features are available to customize your pontoon boat insurance including:
- On the water towing
- Coverage for wreckage removal
- Agreed value coverage
Additionally, I have noticed that I am advised each time of the many discounts I could take advantage of and reduce my pontoon insurance each time by:
- Being a homeowner
- Completing an approved boat safety course
- Being multi-vehicle and insuring more than the one boat
- Being multi-policy and covering home and car alongside boat for insurance purposes
- Paying my boat policy premium in full
- Being a responsible driver
Which Comes First: The Boat Or The Boat Insurance
If you are in the market for a boat, it’s a good idea to consider shopping for insurance first before signing your boat purchase paperwork. Insurance rates can vary, so you may want to factor in the cost of your coverage as you determine which boat you can reasonably afford.
Try narrowing your purchase choices down to two or three boats, and then take information about their specifications to a local independent agent.
Your agent will get quotes from several insurance companies for you on your potential purchases. You can then determine for yourself which boat will ultimately be better for your needs and budget.
An independent agent in your area can help you evaluate boat insurance rates and options so you can enjoy the water and have peace of mind. If youre thinking about getting a boat, contact a local agent today and get the vital information you need for your best protection.
TrustedChoice.com Article | Reviewed byJeffrey Green
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Who Offers The Best Boat Insurance Rates
Many insurance companies offer competitive boat insurance rates. Shop around to make sure you are getting the information you need to make an informed decision. Sites like allthingsboat.com and consumeraffairs.com provide reviews for many different insurance companies and are great places to begin your research. Speak with other boaters find out what features are important to them and why. Do your homework by researching different companiesâ offerings and you will be prepared to make the best decision for your needs.
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If having fun on the water appeals to you, then you might find yourself in the market to buy a boat. You could purchase a boat for fishing, speed boating or sailing, or a pontoon to float around casually. Just as you insure your car and your home, it’s a good idea to get adequate insurance coverage for your boat.
As you research your options for boat insurance, you might have some questions about the cost, what kind of coverage you should purchase, and what insurance company carries the best policies for your dollar.
An independent insurance agent can help answer your insurance questions and get you on the right track for saving on your boat policy. Contact an independent agent today to get started.
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What It Covers And Why
Though it isnt mandatory in Ontario, boat insurance is an absolute necessity before you hit the water. It can save you thousands of dollars. Ensure you read your policy carefully before you sign anything. The best boat insurance policies generally have similar certain areas that they cover, and if one of these is excluded from the policy, then you should ask your provider why or shop elsewhere. Dont take risks with your coverage, and ensure it has the following:
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Saving Money On Boat Insurance
Some of the factors that determine the cost of insurance are out of your control, while others you can pay attention to and help yourself get a better deal. Just like with shopping for your boat, you should be sure to research different companies and compare their offers. While you’ll get what you pay for when it comes to insurance, it’s worth it to choose a cheaper policy if it provides similar coverage.
You should also pay attention to optional insurance coverage. Many companies will allow you to tweak your deductible for a lower premium, but that’s not your only option. Look at your policy carefully and consider removing options that don’t apply to your regular boating conditions, but be sure you won’t put yourself at higher risk without them.
If you have a new boat, you’ll likely want comprehensive coverage to protect against all types of accidents. However, as it gets older and depreciates, you can change to just liability coverage, which is often far less expensive. You’ll still need to consider maintenance costs, but saving a bit of money can go a long way.
Taking boating safety courses and being careful to avoid accidents may give you a safe boater discount. Don’t be afraid to ask what else you can recieve as a discount or a bonus.
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Physical Damage Coverage For Your Boat
Physical damage coverage protects your watercraft on land and in the water. Whether its afloat, in transit or in storage, your watercraft is protected against most accidental damage or loss. And that usually includes coverage for your manufacturer-installed equipment and your outboard motor, too. If you own a sailboat, the policy also covers sails, spars and rigging.
Covered losses for physical damage to watercraft typically include:
- Collision with another boat or object
Average Costs Of Boating Insurance
So how much does boat insurance cost? With so many factors playing a role in determining the price of insurance, it can be hard to tell what youll have to pay at a glance. However, for the most part, boaters tend to pay anywhere between three-hundred to five-hundred dollars per year on their insurance costs.
Where you live can also impact your costs states like Alabama can fall below this average, while areas susceptible to risks of hurricanes can have higher premiums because there is a higher risk of damage for these vessels. In any event, you can expect to pay between twenty-five and fifty dollars per month on insuring your boat.
If you have a larger, more expensive boat and you wish to have complete coverage, its even possible to see monthly insurance premiums of up to one-thousand dollars, though this wholly depends on the options available and the other factors weve discussed above.
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What Is A Deductible For Car Insurance
Category: Insurance 1. Car Insurance Deductibles Explained | Progressive An auto insurance deductible is what you pay out of pocket on a claim before your insurance covers the rest. Collision, comprehensive, uninsured motorist, and Apr 22, 2021 A car insurance deductible is the amount of money youll pay out
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Comparing Boat Insurance Providers
Owning a boat is a major expense and you should choose your boat insurance provider with care. Remember to research the company and check out its ratings and reviews. Some other things to keep in mind when comparing providers include:
- Coverage options: What type of coverage is offered? Make sure you understand the different plans and if things like running aground or hitting the dock are covered.
- Pricing: Know how much youre paying for coverage and what that includes. Also, keep due dates in mind and if a downpayment is required.
- Discounts: What discounts does the provider offer? Some things to ask about are bundling discounts, safe boater discounts, age-based discounts, and discounts for experienced boatmen
- Specializations: Know if the provider specializes in marine coverage and make sure the agents are knowledgeable because it is much different than auto insurance. Some companies specialize in recreational boating and others specialize in commercial boating and yachts.
- Coverage Exclusions: Research ahead of time what is not covered so you know before you choose a policy. Some providers wont insure boats that go above a certain amount of knots and others wont insure boats with aftermarket parts.
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