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According to the Insurance Information Institute
(I.I.I.), the size and age of the boat, as well
as its horse power are the main factors determining
coverage and premium. Other variables are the
type and value of your craft and the water where
it's used. A sail boat 25-feet or longer would
probably cost approximately 25 to 30 percent
less to insure than a power boat.
When buying insurance, no matter what boat
or circumstances, it is important to know what
questions to ask your insurance representative.
The I.I.I. suggests asking the following:
- Will personal possessions such as fishing
or water-skiing equipment also be covered?
- Will the boat be covered for actual cash
value (depreciation) or agreed value?
- Are there any lay-up periods, in dry dock,
as for instance from December to April?
- If I hire a crew will it affect my liability
coverage and include workers compensation
coverage?
- Are there discounts for safety equipment
or safe boating courses?
You may be asked by the insurance representative
about the use of the boat (cruising on a lake,
boating across the Atlantic). Answer truthfully
because any untruthful statement may cause future
claims to be denied.
The I.I.I. advises owners of jet skis and waverunners
to purchase a PWC policy to protect them in
the event of an accident. The PWC policy covers
bodily injury, property damage, guest passenger
liability, medical payments and theft. Liability
limits can start at $15,000 and be increased
to $300,000. Typical policies may include deductibles
of $250 for property damage, $500 for theft
and $1,000 for medical payments. Additional
coverage can also be purchased for trailers
and other accessories. A $6,000 PWC insured
for a premium of $400-500 could include $300,000
worth of liability coverage, guest passenger
liability, physical damage for theft, accident
or other calamity such as wind damage. Owners
should talk to an agent or company representative
for more information about the type of coverage
that would best suit their needs.
Finding the right coverage may require shopping
around and diligence on your part. However,
taking the time now to review your insurance
needs may mean smooth sailing for the rest of
the season.
This site was created to help in the evaluation
of boat insurance with our boat insurance
review section. There you will find comments
from other boat owners on their experiences
with the various boat insurance providers.
In addition we also have articles related to
boats, personal watercraft and yahct insurance.
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