FAQs about Boat Insurance

Boat insurance is a must for anyone who owns or operates a vessel. It protects you, your family, and your investment in the event of an accident or other mishap.

Here are answers to 14 common questions about boat insurance.

What does boat insurance cover?

Boat insurance typically covers physical damage to your vessel, as well as liability coverage in the event that you cause damage to someone else or their property. Some policies also cover medical payments, towing, and other expenses.

Is boat insurance required by law?

No, but most lenders will require you to have it if you finance your boat. Some states also have financial responsibility laws that require you to maintain certain levels of coverage.

How much does boat insurance cost?

The cost of boat insurance varies depending on the value of your vessel, where you live, how often you use it, and other factors.

What factors affect the cost of boat insurance?

There are a number of factors that can affect the cost of boat insurance, including the value of your vessel, where you live, how often you use it, and more.

What is a hull deductible?

A hull deductible is an amount you would pay out-of-pocket in the event of a claim. The higher your hull deductible, the lower your premium will be.

What is liability coverage?

Liability coverage protects you in the event that you cause damage to someone else or their property. It is one of the most important types of coverage you can have, as it can help to protect your assets in the event of a lawsuit.

What is medical payments coverage?

Medical payments coverage helps to pay for the medical expenses of anyone who is injured while on your vessel. It can be used to cover expenses such as ambulance fees, hospital stays, and more.

What is uninsured/underinsured boater coverage?

Uninsured/underinsured boater coverage protects you in the event that you are involved in an accident with an uninsured or underinsured driver. This type of coverage can help to cover the cost of repairs to your vessel, as well as any medical expenses you may incur.

Is there a limit to how much coverage I can get?

Most boat insurance policies have a limit of $300,000 per occurrence. This means that if you cause an accident those results in damages exceeding $300,000, you will be responsible for paying the difference.

What is the difference between actual cash value and replacement cost coverage?

Actual cash value coverage pays to repair or replace your vessel up to the amount it is currently worth. Replacement cost coverage pays to repair or replace your vessel up to the amount it would cost to replace it with a new one of a similar make and model.

What is agreed on value coverage?

Agreed value coverage is a type of policy that allows you to insure your vessel for an agreed-upon amount. In the event of a total loss, you will receive the agreed-upon amount, regardless of the actual value of your vessel.

What is stated value coverage?

Stated value coverage is similar to agreed value coverage, but instead of an agreed-upon amount, the insurer will assign a stated value to your vessel. In the event of a total loss, you will receive the stated value, regardless of the actual value of your vessel.

Should I get replacement cost or actual cash value coverage?

The type of coverage you choose should be based on the value of your vessel and your personal needs. If you have a newer vessel or one that would be expensive to replace, then replacement cost coverage may be a good option for you. If you have an older vessel or one that would not be as expensive to replace, then actual cash value coverage may be a better option.

What is a deductible?

A deductible is an amount you would pay out-of-pocket in the event of a claim. The higher you’re deductible, the lower your premium will be.

Conclusion:

There are a number of different factors that can affect the cost of boat insurance. The type of coverage you choose, the value of your vessel, and where you live are just a few of the things that can impact your premium. Be sure to shop around and compare rates from different insurers to find the best policy for your needs.