How to Insure Yourself Against Overpaying for Boat Insurance

Make sure the boat insurance you get is the best value for your dollar.

There are some important things to consider when you look for boat insurance to help you find the best possible policy to insure your boat. Cost is important when considering boat insurance, but not more important than quality.

Instructions

1. Call several companies. In most instances, you can get a better rate from a company that specifically insures boats over those that handle mutliple vehicle types unless those companies offer reductions for multiple policies. Some insurance companies give a large discount to boat owners who also insure one or more cars, their home and other recreational vehicles with them.

2. Take a U.S. Coast Guard approved boating safety course. Upon passing the course each student receives a license. Most insurance companies give sizeable discounts when all of the boat occupants of driving age have a license from these courses.

3. Determine what is cost-saving and what is just "cheap." Don't cut yourself short by being too cost conscious. Taking a cheaper boat insurance over more expensive yacht insurance (available on any size boat) makes sense on a monthly or yearly payment basis but may not make sense if you lose your boat.

4. Select a larger deductible so you pay lower premiums. This is a good way to save money as long as you make sure you can pay the deductible when you need to repair or replace the boat.

5. Ask important questions when you find a cheap boat insurance. There could be a reason for a big difference in price and some standard things may not be covered. Be safe, and ask for a complete list of what is, and is not, covered.

6. Find out what the company depreciates. Some companies only depreciate the engine or hull, but others depreciate the value of everything so replacement payments may end up not covering any of the actual cost.

7. Look for companies that offer "agreed value" policies. They do not depreciate the value of your boat at all. If you sign up for a policy on a $100,000.00 boat, and you have an accident 10 years later, as long as your policy is up-to-date, the payment value of that boat is $100,000.00, so you can replace your boat.

References

• Choosing the Right Boat Insurance
• iboats: Boat Insurance
• BoatUS Marine Insurance: Frequently Asked Questions