3 Tips When Purchasing Insurance For Your Boat

Posted on: 6 March 2018

Owning a boat affords you the opportunity to navigate the waters, any time you want. These boating adventures are great, but accidents can always happen. That's why you need to protect your boating investment by getting insurance. Here are some tips to make this process as stress-free as possible. 

Know if Insurance is Needed

Since boat insurance costs can certainly add up over time, you need to know if you even need this type of coverage in the first place. There are actually some states that require boat insurance. There are also banks that require you to show proof of insurance, if you took out a loan. Also, it's best to have boat insurance if you paid a premium and want to protect your assets.

Where boat insurance may not be needed is if you don't use your boat that often, or didn't put a lot of money into it. If something happens, you may be better off taking the loss and saving on insurance costs.

Decide Between an Agreed Value and Actual Cash Value Policy

With boating insurance, you have the option to go with an agreed value or actual cash value policy. Both have their advantages depending on certain factors. Although you'll probably pay more for the agreed value policy up front, you'll save more money because the boat's stated value is covered in the event of a total loss.

With actual cash value policies, conversely, the boat's actual cash value is only covered if your boat is destroyed. You won't have to pay as much for this policy, though. Typically, this option is best for boats that are not that expensive. 

Find the Right Insurance Provider 

Today, there are many vendors you can choose from when it comes to finding boat insurance. A lot of people actually bundle their boat policy with their home insurance policy. Sometimes, they can get a better rate by bundling, and it makes it easier to work things out with just one company.

You can also purchase boat insurance from a marine insurance company directly. These companies specialize in boating insurance, and typically give you access to more coverage options that work for your particular situation. Whatever vendor you do business with, make sure they are reputable and offer plans that work for your financial and boating situation.

Boat insurance is helpful to have in case an emergency, such as a collision, happens out on the waters. Take your time assessing your individual needs and financial situation to choose a policy that works out.