With summertime approaching, it may be time to invest in a new boat or perhaps a jet ski. These items may be the perfect solution for those who are looking for a relaxing time on the water, but it is a significant financial commitment, too. That’s why having boat insurance is a must.
The question is, how can you keep this cost low enough to make your boat an affordable summer activity?
Types of Boat Insurance
There are various types of features to boat insurance. It is up to you to determine which policies are right for you, but most will need at least the following:
- Roadside Assistance: This feature may or may not be a part of your insurance policy. In short, if you break down, it will cover the towing to a repair facility. This may apply in special situations, such as battery failure, mechanical breakdowns, flat tires, or insufficient fuel.
- On-Water Towing: In some cases, you may not be stuck on the side of the road so much so as being stuck on the water. Look for a policy offering on-water towing. This pays for labor costs, towing, and other specifically-listed policies. Be sure to know how much coverage you have (most policies range from $300 to $1000 per occurrence.)
- Total Loss Replacement: One of the most comprehensive types of boat insurance is total loss replacement. In this type of policy, you are covered for incidents that destroy the boat, including those that you or another person cause.
- Comprehensive and Collision: Collision insurance covers incidents in which you hit someone else. Comprehensive coverage provides protection if your boat takes on damage from a theft, vandalism, or a fire. These policies are often important to ensure your vehicle is replaced should a total loss occur.
It is a good idea to know the value of your boat to ensure that you have the best possible level of coverage. You also will want to discuss the types of policies right for your individual situation with your agent.
What About Other Vehicles?
Do you have a personal watercraft? Perhaps you have a fishing boat, sailboat, or a jet boat. Each of these types of watercraft can be insured. In most cases, they should be. If the loss of the item would be a significant financial blow, you should have coverage for up to the value of that item. Most policies will help to insure your vehicle, no matter what type, is protected from collisions or other accidents.
When selecting boat insurance, know the limitations to such policies. Most will have some exclusions to coverage. You also should discuss deductibles and premium costs. You may even qualify for discounts if you purchase your auto insurance or home insurance with your boat insurance.