Boat insurance is a type of insurance that protects you and your boat from various risks and liabilities on and off the water.
Depending on the policy you choose, boat insurance can cover different aspects of your boat, such as the hull, the engine, the equipment, and the passengers.
Boat insurance can also cover you in case of an accident, theft, vandalism, fire, storm, or other perils.
In this article, we will explain the basic and optional boat insurance coverages that you need to know before purchasing a policy.
Basic Boat Insurance Coverages
These are the coverages that are usually included in most standard boat insurance policies.
They provide protection for the most common and essential situations that you may encounter as a boat owner.
- Liability coverage: This coverage pays for the damages and injuries that you cause to others if you are at fault in a boat accident. It also covers your legal expenses if you are sued by the other party. Liability coverage is required by law in some states and by some marinas and waterways.
- Collision coverage: This coverage pays for the repairs or replacement of your boat if it is damaged or totaled in a collision with another boat or object. It also covers the removal of your boat from the water if it is legally required.
- Comprehensive coverage: This coverage pays for the repairs or replacement of your boat if it is damaged or stolen by something other than a collision, such as fire, vandalism, storm, or animal. It also covers your personal property on board, such as clothing, electronics, or fishing gear.
- Uninsured/underinsured boater coverage: This coverage pays for your medical expenses and property damage if you are involved in a boat accident with another boater who has no insurance or not enough insurance to cover your losses. It also covers you if you are hit by a hit-and-run boater.
- Fuel spill liability coverage: This coverage pays for the cleanup costs and fines if your boat causes a fuel spill in the water. Fuel spills can be very expensive and harmful to the environment, so this coverage is important to have.
- Wreck removal and salvage coverage: This coverage pays for the costs of removing your boat from the water if it sinks or becomes stranded. It also pays for the salvage costs if your boat can be recovered and repaired. Some policies may include this coverage under collision or comprehensive coverage, while others may offer it as a separate option.
- Medical payments coverage: This coverage pays for the medical expenses of you and your passengers if you are injured in a boat accident, regardless of who is at fault. It can cover things like ambulance fees, hospital bills, surgery costs, and more.
Optional Boat Insurance Coverage
These are the coverages that are not typically included in standard boat insurance policies, but you can add them to your policy for an extra cost. They provide extra protection and benefits for specific situations that you may want to consider.
- Full replacement cost coverage: This coverage pays for the full cost of replacing your boat with a new one of the same make and model if it is totaled in an accident. It does not factor in depreciation or wear and tear. This coverage is usually available only if you are the original owner of your boat and it is less than a certain age, such as five years.
- Sign & Glide® on-water towing coverage: This coverage pays for the towing and assistance services if your boat breaks down or runs out of fuel on the water. It can save you from paying out-of-pocket fees for these services, which can be very expensive depending on where you are and how far you need to be towed.
- Fishing equipment or carry-on items coverage: This coverage pays for the replacement of your fishing equipment or other personal items that are lost, stolen, or damaged on your boat. It can cover things like rods, reels, tackle boxes, coolers, cameras, phones, etc. Some policies may have a limit on how much they will pay per item or per incident.
- Propulsion Plus® mechanical breakdown coverage: This coverage pays for the mechanical repairs of your boat’s engine, lower unit, or upper drive unit if they fail due to normal wear and tear. It does not cover routine maintenance or cosmetic damage. This coverage is similar to an extended warranty for your boat’s engine.
- Total loss replacement coverage: This coverage pays for a new boat of the same make and model if your boat is totaled within a certain period of time after purchase, such as one year. It does not factor in depreciation or wear and tear. This coverage is usually available only if you are the original owner of your boat and it is brand new or less than a certain age.
- Trailer trip interruption coverage: This coverage pays for your food, lodging, and transportation expenses if your vehicle breaks down while towing your boat more than a certain distance from home, such as 100 miles. It can help you continue your trip or return home safely.
Boat Insurance Coverage Add-Ons
These are the additional features or services that some boat insurance providers may offer to enhance your policy and customer experience. They may be included in your policy at no extra cost or available for a nominal fee.
- Diminishing deductible: This feature reduces your deductible by a certain percentage every year that you remain claim-free, up to a certain limit. For example, if you have a $500 deductible and a 25% diminishing deductible, your deductible will drop to $375 after one year without a claim, $250 after two years, and $125 after three years.
- Agreed value option: This option allows you to agree on the value of your boat with your insurance provider at the time of purchase. This value will be the amount that you will receive if your boat is totaled in an accident, regardless of depreciation or market value. This option can help you avoid a gap between what you owe on your boat and what it is worth.
- 24/7 claims service: This service allows you to file and track your claims anytime and anywhere, either online or by phone. It can help you get faster and easier service in case of an emergency or a loss.
- Boat insurance discounts: These are the discounts that you may qualify for based on various factors, such as your boating experience, safety record, education, membership, loyalty, bundling, etc. They can help you lower your boat insurance premiums and save money.
Boat insurance is a smart investment for any boat owner who wants to protect their boat and themselves from unexpected risks and liabilities.
By understanding the different types of boat insurance coverages that are available, you can choose the best policy that suits your needs and budget.
You can also compare quotes from different boat insurance providers to find the best deal and coverage for your boat.
