Is Boat Insurance Expensive
As is the case with almost anything you purchase, the more research and price comparison you doâthe higher likelihood that you will find the boat insurance quote that is right for you. Here are some tips to ensure that you are getting your moneyâs worth and keeping your costs down:
- Only buy what you need: There are lots of options out there for marine insurance and many of these policies are custom-written. Ensure that you know what you need so you can avoid paying for features that you donât require.
- Agreed value vs. Cash value: In an agreed value policy, you are paid a pre-determined value for the vessel in the event of a total covered loss. With agreed value, the insured and insurer agree on the value of the boat upfront. Most agents would recommend this option for a new or late-model boat. As the boat continues to age, look to potentially switch to a cash value option to save on premiums.
- Take a boater safety course: Almost all insurers offer a discount for boaters that have recently completed an approved boater safety course. Take an in-person class or get your boat safety certification online. Check with your insurance agent to see if a discount is offered for your specific policy.
- Spend on safety gear: Insurance companies may cut you an additional discount for having extra safety features onboard your vessel. Check with your insurance agent to see if you qualify for any additional savings.
To Protect Your Financial Health
Liability coverage will also pay for any bodily injury that results from an accident. This includes any swimmers, water skiers, or other boaters. In addition, it will compensate for any legal fees you incur if you are sued.
Youll need to consider exactly how much liability coverage you will need. The policy will come with a standard liability insurance amount, but we recommend having at least $1,000,000 in liability coverage. For those with more expensive vessels that have bigger engines and can carry more people, you might want to consider purchasing up to $2,000,000 in liability insurance to financially protect you and all your passengers.
If you are docking your boat at a marina or you are leasing or financing a vessel, you may be required to have a certain amount of liability insurance as part of your agreement. Be sure to read the fine print before you settle on a policy to ensure you have all the coverage you need.
Shopping For Boat Insurance
Start with a little fact-finding. Ask your boating friends which company they use and how their claims have been handled. The way an insurer has handled claims in the past is a good indicator of the quality of service you can expect in the future.
State insurance regulatory agencies are also a good reference and can be found online.
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How Much Charter Boat Insurance Do I Need
Because you have invested a large sum of money in your charter boat business, make sure your investment is suitably covered by an inclusive insurance policy. Be sure to completely assess your risks and coverage needs when shopping around for your policy.
When it comes to liability coverage, most insurance professionals agree that purchasing as much coverage as possible is advisable. In todays litigious society, an injury lawsuit can prove to be expensive enough to hurt your business.
Having high liability limits will ensure that you have enough coverage if one or more people are injured in an accident. You can also consider an umbrella liability insurance policy to further raise your liability coverage. Check with your agent to see which option is the best for your needs and risks.
Do You Need Boat Insurance
Your home insurance policy covers your boat in some cases, but it doesnt go far. Homeowners policies typically cap boat coverage at $1,000 or 10% of your homes insured value. And liability coverage which pays for damage your boat does to others typically isnt included under home insurance. So a home insurance policy might help you only if your boat is small, slow and inexpensive.
At a glance: Do I need boat insurance?
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Is A Boat Covered Under Homeowners Insurance
Your homeowners policy typically includes some coverage for your watercraft, including their trailers, motors, equipment, parts and accessories. But the coverage for watercraft included on your home insurance policy isn’t meant for all types of boats. And just like a home or vehicle, boats come in all shapes and sizes with different equipment, enhancements and anything else you do to make it uniquely yours. So creating a customized boat insurance policy is key to keeping it protected from unexpected events.
What Is Boat Insurance
Boat insurance is an insurance policy that covers property damage or liability expenses related to your motorized watercraft. Its usually distinct from a homeowners insurance policy, even if the boat sits on a trailer in your side yard.
Depending on the level of coverage you choose, a boat insurance policy serves two main purposes. It pays for loss or damage to the boat, and for damages or injuries to others related to boat usage.
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Consequences Of Operating A Boat Under The Influence
Alcohol use was the leading cause of fatal boat accidents in 2019, according to data from the U.S. Department of Homeland Security and the U.S. Coast Guard.
Like drinking and driving, operating a boat under the influence of alcohol or drugs is illegal in every state. Also, federal law prohibits boating under the influence , which the U.S. Coast Guard enforces. This law prohibits all boaters from operating vessels while under the influence, even foreign boats in U.S. waters.
Penalties for drunk boating vary by state and jurisdiction of the waters but can include:
- Large fines
- Suspension or revocation of boat operator privileges
- Suspension or revocation of drivers license
- Jail time
In addition to facing state and federal penalties, you may get severe consequences from your insurance company. For starters, if you get into an accident as a result of operating a boat under the influence, your insurance company might only pay out a liability claim against you. It might not cover damage to your own boat. Your insurer could also decide to cancel your boat insurance coverage after a drunk boating accident.
If youre convicted of BUI with no accident, your insurer could still drastically raise your boat insurance rates or, worse, cancel coverage. While you might be able to find other boat insurance coverage after a cancellation, youll likely have to pay significantly more for a new boat insurance policy.
What Does Boat Insurance Cover
Boat insurance contains coverage types to help in different situations, much like car insurance:
Property coverage. This protects the boat against theft and damage due to an accident or sinking. This coverage usually applies to the boat whether its on land or water.
You may get a choice of actual cash value or replacement cost coverage in the event your boat is totaled or stolen:
- With actual cash value coverage, if your boat is totaled your insurance claim will reflect the value of the boat at the time of the incident.
- Replacement cost coverage doesnt factor in depreciation. It will reimburse you for the amount of money it would take to repair your boat back to the same condition before the accident or replace it with the same or similar boat model.
Liability coverage. If your boat damages someone elses property, such as another boat, or injures someone during an accident, liability coverage pays their damages. It may also cover problems caused by your watercraft, such as a large wake. Liability insurance also covers your legal fees if youre sued over a problem covered by the policy, such as a boating accident.
Medical payments coverage. If you or your passengers are injured in a boating accident, medical payments coverage pays for your medical bills.
Uninsured watercraft coverage. If an uninsured boater strikes your boat, uninsured watercraft coverage pays your medical bills.
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How To File An Insurance Claim For Boat Damage
To help get your life back on track quickly and as stress-free as possible, we try to make the claims process uncomplicated. If you need to file an insurance claim for boat damage, you have options:
1.File your claim with your agent, online, through My Account or give us a call at 1-800-MYAMFAM
2.Youll want to have this information on hand:
- The date and time of the event.
- A brief description of what happened.
3.After you file a boat insurance claim, our on-call team of experts will be on site as quickly as possible, inspecting the damage and making sure you have everything you need to keep your life moving forward.
Is Charter Boat Insurance Expensive
The cost of insuring one or more charter boats can be high. However, the coverage is necessary, not only because it is required by law, but because without it, a single accident could potentially bankrupt your business.
Because your insurance policy will be one of your businesss main expenses, it is important that you choose your carrier and policy options carefully.
Save on Boat Insurance
Our independent agents shop around to find you the best coverage.
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How Much Does Boat Rental Insurance Cost
Cost varies depending on the type of insurance policy you choose, but the risk of not having the proper insurance coverage far outweighs the cost of a premium. The average cost can be between $300-$500 or even well over $1,000. It depends on the type of boat, the length, the age, how many you rent out, and more. Do get the right insurance coverage for your business, make sure to contact a knowledgeable agent.
Boat Insurance Requirements By State
Generally speaking, you won’t be required by your state to purchase boat insurance. In fact, only a handful of states require boaters to purchase insurance, and the requirement is often limited to boats with engines rated to have at least 50 horsepower. The table below lists the insurance requirements for each state.
|Arkansas||Liability insurance with at least $50,000 in coverage is required for all boats powered by engines of more than 50 horsepower.|
|Hawaii||Only for boats parked in Department of Land and Natural Resources Division of Boating and Ocean Recreation facilities. Liability insurance with at least $500,000 in coverage is required for all boats parked in DOBOR facilities, including harbors and offshore moorings. The insurance policy must name the State of Hawaii, DOBOR as the “additional insured” or “additional interest”. The policy should cover salvage costs for grounded or sunken vessels, damage to docks, pollution containment and wreck removals.|
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Average Cost Ranges Of Boat Insurance
Boat insurance premiums range from low to costly, Galbreath says, and some small motorboats may be endorsed onto an existing homeowners policy for little extra cost. However, he says there are limits in the policy for the boats length, motor horsepower and maximum speed.
You should consider separate coverage if you have a large, fast boat, he says. And the faster and larger you go, the higher the cost.
So depending on the size, speed and location of your boat, your policy may cost as little as $100 a year up into the thousands. Most rough estimates we found were less than $1,000 per year.
When you meet with an insurance agent to discuss what level of boat insurance coverage you need, Shasha says to be sure you discuss the following factors, all of which influence the cost of your policy:
- Your level of boating education
- The boats safety and security features
- If the boat is a hybrid or electric
- If youre insuring more than one boat with the same company
- If you have another policy, such as auto or homeowners, with the insurer.
Working with an insurance representative to create a marine insurance policy that fits your individual needs and budget can help protect you, your loved ones, and your assets in the event there is a boating accident, Shasha says.
What Will I Learn From A Boating Safety Class To Get My Boating License Or Boating Certificate
It may vary from class to class, but most boating safety courses will teach a variety of important skills. Youll not only be taught basic skills such as boat operation, navigation and etiquette, but youll also learn key communications techniques and will be familiarized with state laws and regulations.
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Boat Rental Liability Insurance
This policy covers losses that may arise from your business inflicting damage to third parties. It also includes litigation fees if you and your business end up before a jury or judge. This covers:
- Third-Party Bodily Injury: Your rental crafts or vessels may cause bodily harm to third parties that may require monetary compensation or medical bills. It also covers the losses from accidental oil spills .
- Damage to Property: Your boat may cause damage to other boats, equipment, and even the dock that may require compensation. This insurance covers all costs that may arise from such damage.
- Wreckage Removal: If your vessel sinks, you may be required by law to pay for the removal. This policy covers the cost of removal of sunken debris and vessels from the sea.
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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Are discounts available?
Discounts are available after you have responsibly owned your boat for three to five years, for being claims free, and if you have taken courses at Canadian Power and Sail Squadron or Sail Canada. Discounts are not available for holding the required Pleasure Craft Operator Cardthats like asking for a discount because you have a drivers license.
Is my boat insured even when Im not using it?
Yes, when you buy a years policy, your boat is covered in storage, in transit, on the water and over the winter. The risks dont stop when youre not using your boat – its more likely to sink when you are not there, and more electrical fires start in the cold months.
Can my insurance be voided?
Yes, if you are involved in any criminal act such as drinking illegally on your boat – your insurance is void.
What about my trailer?
ICBC requires a license plate, and liability insurance. Physical damage can be added to your boat policy for Agreed Value.
Take time to choose your insurance, Paul advises, to make sure you get everything you need.
He asks, Whats peace of mind worth to you?
Protection For Your Boat And From Others
According to the U.S. Coast Guard, the leading type of boating accident is collision with a recreational vehicle. Thats why its important to protect yourself against other vessels and operators who may not be carrying the right level of insurance. An uninsured and underinsured watercraft liability option provides coverage for a loss that you or other occupants of your watercraft experience from a claim involving an un-/underinsured boater.
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Do I Need To Have A Boating License Or Boating Certificate In Order To Operate A Vessel
The quick answer is that all depends on your states laws and regulations. Regardless of your states laws, its a good idea for all boaters to get a boating license or boating certificate to keep up to date and refreshed on important skills and techniques. No matter what your states requirements include, boating safety and education have been proven to save lives, and, as boaters, we all have the responsibility to operate our vessels safety and effectively.
Protection And Indemnity Vessel Policy Coverage
P& I indemnifies someone for personal injury or property damage caused by your vessel or suffered while a passenger aboard your vessel. It also pays to defend against lawsuits brought against you due to the above, and in many cases the chief function is to pay for an out-of-court settlement to prevent expensive litigation and potentially more costly damage awards.
What a plaintiff stands to gain in a lawsuit is limited by the circumstances and severity of the loss as well as the amount of the vessel owner’s assets.
Courts commonly adjust awards downward to reflect contributory negligence or the degree to which the plaintiffs actions contributed to his or her injury or loss.
The purpose of a Hull and Machinery policy is to get the boat back into operation as quickly as possible, and the purpose of P& I is to defend you in litigation, and to protect your assets in the event of a personal injury or damage award.
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