BOAT INSURANCE: FREQUENTLY ASKED QUESTIONS

When you're considering purchasing a sailboat (or other boat), part of the costs involved in boat ownership is marine insurance. Don't even consider going without insurance. Why? Because you're leaving your home, and any other investments vulnerable to liability claims in the event of an accident.

HOW EXPENSIVE IS BOAT INSURANCE?

The cost of boat insurance is determined by many factors. Like auto or car insurance, there are quite a few variables that will determine the cost of your premium. Obviously, it deends on the type of boat, its length, the type of motor, where you plan to operate it, the value of the vessel, and how much coverage you will need.

IS BOAT INSURANCE REQUIRED BY LAW?

No, most states do not require boat insurance to operate your boat on the water. However, if you have a loan on your boat, your lender will, in most cases, require that the investment is insured. You will be required to have a title and registration for your boat and trailer, as they are driven on the roads.

But, think about it. Wy would you spend the money to purchase a boat, yet not consider the insurance premium a part of the investment? You should always purchase boat insurance to protect your boat, as well to pay for any property damage you may cause if you have an accident. Keep in mind that you could open up your homeowner's insurance, as well as any other types of investments you own to liability if you don't have insurance to protect them.

WHAT IS THIRD PARTY LIABILITY IN MARINE INSURANCE?

Someone other than the parties (neither the policy holder nor the insurer) to a liability policy is considered a third party.

IF SOMEONE IS BORROWING YOUR INSURED BOAT, ARE THEY COVERED UNDER YOUR POLICY?

Yes, as long as they had your permission to operate your boat, and your policy doesn't have a clause excluding other drivers or users.

CAN I PURCHASE BOAT INSURANCE ONLINE?

Yes, there are many insurance companies that offer great marine coverage with the convenience of online purchase. The best one we've found is boat insurance from BoatUS . They offer years of marine insurance experience, as well as a variety of policies to fit every boat owner's needs.

DO BOAT LENDERS REQUIRE BOAT INSURANCE?

Typically, they require at least liability insurance because until the boat is paid for, the lender is technically also a legal owner of the boat. Any damage that occurs to people or property will go back to the lender, so they will most likely require you to maintain insurance.

CONCLUSION

While you may consider marine insurance something you really don't need, please stop and think again. I'll even go so far as to say it's something you can't afford NOT to purchase. Why not have smooth sailing knowing you're covered in the case of any unforseen scenarios.