Boat insurance is a type of insurance that protects boats and equipment from risks such as damage, theft, and liability. Choosing the right boat insurance for yourself can be a confusing and overwhelming task. There are many factors to consider, and the price of these policies is sky-high if you don’t know how to look for discounts. What you should do is to “buy the best insurance policy that suits your needs and budget, and then save on it by finding out all you can learn about boat insurance providers.
Most policies have a deductible or amount of coverage that you have to pay before the insurance company pays out on a claim. You will want to determine the size of your deductible before signing on the dotted line. The greater your deductible, the higher chance that you will not receive a claim payment because you have paid it off as opposed to having coverage in place and being able to make a claim. If you are purchasing a UIM policy, you probably need to compare deductibles from different insurers because each one has different terms and conditions.
2. Actuarial Value (AV).
The actuarial value is an important number that you should look for when shopping for boat insurance policies. The AV is the amount of money that an insurer will payout on a claim with the intent to cover all overhead costs. Some boat insurance providers charge extra for extras such as wind coverage, so be sure to look at every aspect of your policy before signing on the dotted line. This number can be the difference between paying for a claim out-of-pocket or being reimbursed for it by your insurance company.
3. Types of Coverage and Coverage Period
When shopping for boat insurance, you will want to compare the types of coverage that are available to you. Determine whether you need hull and equipment coverage as opposed to vessel coverage. You may also want to look into additional discounts for boating enthusiasts, such as young sailors or those who take part in race events or marine activities such as sailboats and powerboats.
A perfect boat policy should provide coverage for at least one year. You can find longer coverage periods if you are willing to pay a little more in premiums every year, but it’s important that you do not allow your premium to balloon because of long event coverage requirements like floods and storms. Make sure that your policy is clearly outlined and has no hidden fees. Otherwise, you might end up paying a lot more than you had originally budgeted for.
4. Liability Limits
The liability limit, which is sometimes called the limit of indemnity, is the maximum amount you will have to pay if you are held liable for an incident. You should purchase liability limits that protect you against unforeseen incidents when operating a boat. Since it’s not wise to take chances with the law, try to buy higher liability limits that prevent you from having to pay out-of-pocket expenses if an accident occurs out on the water. Try to get the highest liability limits on your boat that you can afford. The higher the limit, the less you will have to pay each year in premiums.