Boat Insurance Costs
Although boat insurance policies can be costly, boat owners usually purchase this type of policy for their own protection. Boats are major assets, so the financial impact can be great if they are lost or damaged. In addition, boat owners can face liability if their boat damages property or causes injury to a passenger or other boater, whether on water or land.
Generally, the boat's size and home location are the two key factors that determine how much a boat insurance policy will cost. The amount and types of coverage the boat owner selects will also influence the price. A policy that provides full-replacement-cost coverage with a low deductible will cost substantially more than a policy with less coverage and/or a higher deductible. Also, high-end boat equipment, fixtures, and furnishings could mean paying higher premiums to cover these valuables.
The boat ownership history and driving record, including boats as well as vehicles, can affect the cost of boat insurance. Insurance companies will often look at the policyholders' history to see whether they have had many past claims.
The average cost of boat insurance for a small personal craft can be as little as a few hundred dollars or as high as a few thousand, depending on these factors. On the lower end, owners of smaller boats may have little or no coverage for equipment on board. At the higher end, boat owners might purchase Agreed Value coverage, with high limits and more coverage overall. Boats that are larger or more expensive boat, or that travel extensively, may call for higher premiums to cover potential losses.
Boat Insurance Quote
It is important for boat owners to get quotes from multiple insurance companies when shopping around since prices can vary widely. A boat insurance quote is not a binding contract, but is basically an offer from the insurance company to insure the boat for a set amount of premium based on the information provided.
Not all boat insurance policies have the same amounts or types of coverage, so the lowest price quote may not be the best insurance for certain boat owners. Consumers need to read the fine print of every policy and make sure they are comparing "apples to apples" when deciding between policies.
When providing a quote, an insurance agent will request information about the boat itself, including its size, fixtures, and equipment; where the boat will be primarily used; how it will be stored, both on- and off-season; and whether there is safety equipment on board. In addition, the agent or company will need information on the boat owners, including their driving record and boat ownership and claims history.
Boat Insurance Companies
Many insurance companies provide boat insurance policies, ranging from large, well-known companies such as Allstate and Geico, to smaller firms. Several of the companies that provide homeowner's insurance policies offer riders attached to them that offers insurance for smaller vessels. Boat owners interested in getting a boat insurance policy as a rider should first discuss it with their current home insurance company.
Specialty boat insurance companies also offer policies, which can either be purchased online or through an insurance agent. It is recommended that owners of specialty craft obtain their policy through an insurance company familiar with their needs.
Boat owners need to decide for themselves which type of insurance company will best meet their needs. Some may prefer to work with a large company, while others may prefer the specialized offerings of a smaller insurer. They might get additional discounts if they have other policies with the insurer, such as a home of auto insurance policy.
Consumers who are shopping for boat insurance are advised to ask other boat owners about their boat insurance policies and insurance companies to obtain valuable recommendations and/or referrals.
Boat Insurance Directory