Boat Insurance Rates, Quotes, Information and Links
Boat insurance is a type of insurance specifically designed for boats. Think of boat insurance as the exact same thing as car insurance – except for boats. Boat owners who invested money into either a Yacht, Fishing Boat, Motor Boat or any kind of sea vessel would be prudent to buy some sort of boat insurance – even one with a high deductible. Just as accidents happen on the road accidents can happen on water. Accidents are actually quite common in the seas and even boat collisions aren’t unheard of. The two most common type of boat insurance claim is when a boat hits an underwater object while cruising and boat theft while anchored at a marina.
Do I need Boat Insurance?
Unlike auto insurance which is compulsory by law, no federal or state law requires boat owners to purchase insurance on their vessels. It is however, prudent to purchase at least some sort of insurance on a boat – whether it’s a small motor boat, a yacht or a commercial boat as accidents do happen and boat insurance is the best way to avoid having to pay huge out of pocket expenses for damages. Purchasing boat insurance on more expensive boats is extremely important, as unlike cars, certain commercial boats and yachts can cost several million dollars.
Where can I Find Cheap Boat Insurance?
Boat insurance premiums are based on a number of factors – the most important being cruising area, experience, liability limits and size of the plan’s deductible. Where you cruise and operate your boat is particularly important, as certain areas are much riskier than others and certain activities like commercial shipping can result in huge liabilities for the insurance provider if they have to pay out a claim. Experience driving a boat is also important to determining your monthly premium – the more experience you have the cheaper your monthly premium is. Liability limits are also important, as liability limits determine how much the maximum amount a boat insurance company can pay out in a single claim. Larger more expensive boats would of course need much higher liability limits, but this also increases the monthly costs. Cheap boat insurance providers such as progressive, Allstate, and Statefarm can provide cheap boat insurance quotes – but make sure to check out our boat insurance comparisons page to scope out the best deals.
Types of Boat Insurance and Coverage
Like car insurance, Boat Insurance policies come in all sorts of different shapes and sizes. The most common types of boat insurance plans cover the following:
Property Damage Liability – In case your boat damages someone’s property, your insurance will pay for it. This covers all property damages, but the most common types of property damage that could occur while boating include: damage to another boat, marina or building. Basically – if you damage someone else’s property, Property Damage Liability will have you covered.
Injury Liability – Injury liability on boat insurance policies typically cover expenses related to an injury caused by accidents the boat driver caused. Things such as hospital bills, physical therapy, legal defense costs and lost wages due to disability would be covered. Basically – if you hurt someone by accident Injury Liability will have you covered.
Boat Damage – Boat damage insurance will cover the costs of repairing damages done to your own boat. If you hit an underwater rock in shallow waters or a dock for example and cause damages to your own boat, this policy will cover the costs of repair. Boat damage insurance typically pays out in one of three ways: Cash Value (market value of damaged parts or entire boat if it’s wrecked), Agreed Value (The total amount of coverage agreed upon in the policy) and Replacement (The entire boat will be replaced with a new boat of the same model. This type of insurance is usually only given to newer boats). Policies that include boat replacement usually carry much higher monthly premiums.
For more on boat insurance coverage, check out our detailed page on boat insurance coverage.