Boat Insurance 101
Every year, thousands of boating accidents happen and 60 percent of those accidents result in some kind of injury. Boats can also be stolen or vandalized---potentially costing the owner a lot of money. Boat insurance can give you peace of mind by offering protection for you, your passengers and your boat.
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Shop Around
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When shopping for boat insurance, it's always best to get more than one quote. Most general insurance providers do not have experience with boats and may not know what coverage you need. The price of boat insurance can vary, depending on the provider. Research the companies you wish to get quotes from to see how long they have been in business, if they are financially stable and if they have a good reputation for payment on claims. Customer service is also something to consider. If you ever need to make a claim, you will want to be treated fairly and quickly. Ask the provider if they offer emergency services to help you in your time of need.
Discounts
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Ask the potential providers if they offer safety or group discounts. Adding simple safety devices to your boat or taking a water safety class can reduce the cost of boat insurance. If you are part of a boating club, tell the agent---some companies will offer group policies for boating club members. Ask for a multiple boat discount if you have more than one boat.
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Type of Policy
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Actual cash value policies pay the replacement costs minus the depreciation value at the time of the loss. If the boat is a total loss, the insurance company will figure approximate market value of your vessel by referencing the used boat pricing guides and other resources. This form of boat insurance will cost less, but you get a smaller return. Unless you can replace your boat for what it's worth, it may not be a good idea. Agreed amount value policies are based on an agreed amount that you and the insurance company set as the value of your vessel. If the boat is a total loss, this pre-determined amount is what you will get for your boat. This policy will also replace old items in the event of a partial loss.
Classify Your Boat
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The premium for boat insurance is determined by the size of the boat, location of the boat and number of users. You will also need to tell the provider if the boat is going to be used commercially, privately or as a charter. Next, you will have to know what type of coverage you are looking for. The options include coverage for physical damage, personal effects, liability, uninsured boaters, medical liability, towing, salvage and spillage coverage. The cost of the insurance can range from relatively affordable to highly expensive, so it's best to pay for quality boat insurance rather than a cheap one with limited coverage. Be sure to get the protection you and your boat require at a price that is reasonable for your budget.
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References
- Photo Credit boat image by choucashoot from Fotolia.com
