Why Do I Need To Get My Boat Insured?

Boats are quite expensive and you may not want to spend another lump-sum on repairs. Moreover, the risks are far more in water, especially because of the natural forces. A storm can cause serious damage to your boat. Moreover, a lot of accidents happen on the deck every year. Recouping these damages calls for a significant capital requirement which might destabilise your finance and put you in a jeopardy. As we all know that prevention is better than cure, getting your boat insured is something you should seriously consider.

Is it a legal obligation to get my boat insured?

As of now, there are only two states, Arkansas and Utah, that have made it mandatory to get boat insurance for boats powered by 50 horsepower engines or more. You need to have at least $25,000 for bodily injury coverage, $50,000 for death coverage and $15,000 for property damage or a $65,000 combined minimum per accident if you live in Utah. In case you own a boat in Arkansas, you need to have minimum liability coverage of at least $50,000.

How much do I need to spend on annual premiums?

The premiums of your boat insurance will cost you from around $300 to $500 a year depending on the factors mentioned below.

Type of boat you haveLength of the boatAnticipated use of the boat

According to an approximation made by an insurance comparison resource, the yearly payout on premiums will be around 1.5% of the value of your boat in the current market.

What all coverages are provided by boat insurance companies?

Boat insurance companies usually provide five types of coverage as listed below.

Property damage liabilityCollision damageBodily injury liabilityFuel spill liabilityHull coverage

What would be the best type of boat insurance to have?

The best type of boat insurance to have is going to differ from person to person. It all depends on the kind of boat you have, the risks she is exposed to and the extent of exposure. Take your time in analysing all these factors. Have a detailed study about the type of coverages provided by the boat insurance companies and pick the one that best suits your requirement.

How to find the best boat insurance policy to buy?

There are a lot of boat insurance companies offering their policies at alluring rates. To find the best one, you need to invest a bit of your time in comparing the different policies. Look for their reviews online to have an idea of whether the carriers are capable of keeping their promises and maintaining the quality of their services. This will help you in making the right decision.

How can I decide the amount of boat insurance coverage that I need?

Comply with the laws set by your state. Different states pose different criteria for boat insurance coverages that need to be fulfilled. Look for the threshold amount set by your state government. Not complying to those is a felony and is penalised with fines. It also depends on your financial ability to pay for the damages. This will help you decide the right coverage amount.

What are the minimum liability coverages that I should get?

It depends on how you use your boat. If you use your boat at a high frequency with multiple people working on the deck then you should seriously consider getting bodily injury liability, collision damage coverage and hull coverage since your boat will be prone to collisions.

How to minimise boat insurance cost?

Taking a boat safety course and investing in safety gears might help you get a discount from the boat insurance companies since it reduces the chance of accidents. Also, analysing the risks and deciding coverages accordingly might help you reduce the insurance costs to a great extent.