Boat Insurance Policy: Do You Really Need One?

Boating Accident. Image Credit: Marine Insight.

With the amount of money you spend on your boat, imagine what you would do if you lose it in one sudden blow! Aside from being a hobby, your boat is an investment. And like all other investments, you’d want to secure it—this is why you might want to think of getting a boat insurance policy, in addition to your boat accessories and maintenance plans.

If you have never come across a boat insurance policy, you’ll easily get overwhelmed with the information available online, especially those offered by insurance companies themselves. To help you get started, here are some unbiased, objective, and basic facts about boat insurance:

1. To deal with the increase in the number of boat owners, several US states and countries have now require watercraft liability coverage. This type of policy will cover all damages that the boater may incur in case there’s a collision with another boat.

2. The physical damage policy is easily what most boat owners want. Any damage to the boat caused by the events specified in the policy will be covered by its equivalent amount. It may be an open insurance policy, in which case all scenarios will be covered, from disasters like lightning, storms, and hurricanes, to unfortunate incidents like theft or robbery. Some physical damage insurance policies also allow for the replacement of lost parts of the boat.

3. You should get a passenger medical policy, which will cover medical expenses of the boat passengers, in case they sustain any injuries while on the boat.

4. A roadside assistance policy is an optional insurance coverage, which covers towing problems when needed. Towing can be an expensive problem, and this type of policy will help buffer the costs.

5. In case of an accident caused by a collision with another boat, you, your passengers, and your boat will end up in trouble if the other boat is uninsured. This is where an uninsured boat policy comes to the picture.

While your state or country may not require you to get insurance, you might want to consider getting a plan for unforeseen circumstances. It is up to you to weigh the pros and cons of whether