3 Boat insurance tips to 'insure' fun on the water
July 14, 2016
You can feel summer’s imminent arrival, but as you begin to start planning your cottage adventures and lakeside excursions, you should definitely be thinking about planning for ‘on the water’ safety and checking out your boating insurance options. Half of all boating accidents result in injuries. Even if you've been captaining your vessel for years, what about the other guy? He might be a little unsteady on the water or even worse, he may not have insurance, so we’ve included three buying tips to help you find the best packages to ensure you are covered from bow to stern.
From the courtesy wave to helping to create waves, boaters tend to have that sense of camaraderie when out on the water. One way to gather information is to ask other boat owners who have had a claim in the past. Sure, you may find a company with a great premium, but how an insurance company reacts when something goes wrong is a better indicator of whether or not you will have a positive experience with that insurer. Your marina, broker, or repair yard may also be willing to provide a referral.
Have an Idea of your own Needs
Being prepared and doing your research on various packages and coverage can help safeguard you from any surprises. When you contact an insurance broker, take the time to explain exactly what type of boat you have and how you typically use it. For example, bass boaters may need fishing gear and tournament coverage as well as “cruising extensions” if a trailer is used to convey their boat to and from the water. Go with a company that best tailors to your needs.
Have a Clue about Agreed Value vs. Actual Cash Value:
Boaters must choose between these two main choices with depreciation being the differentiating factor. An “agreed value” policy will cover your boat at the value you and your insurer agree on, yet typically will cost more upfront. However, there is no depreciation if your boat in an instance that it is a total loss. An “actual cash value” policy will cost less upfront, but factors in depreciation and will pay up to the actual cash value at the time the boat is declared a total or partial loss.