Are you thinking of buying a boat? Do you already own a boat? When figuring out the total costs of your investment don’t forget about powerboat insurance. If you are trying to avoid this purchase, Don’t! Your finance company will make it next to impossible to go without it and they will demand that you have it, especially if you use it as collateral.
You should always purchase powerboat insurance. It is a necessary cost of owning a powerboat and the responsible thing to do. It can, in the long or even short run, save you money. The powerboat insurance world can be a complex one. It is an unregulated industry varying from state to state.
Powerboat insurance can range by the materials of the boat, the wooden boats increasing rates, and of course the type of boat. I hope you’re not surprised when I tell you that racing powerboats will command a higher insurance rate.
You will also find that it will be necessary to check out the insurance company and its records. This can be done by checking out the company’s credentials with state agencies or visiting your local Better Business Bureau. If you already have a car or house policy with a company, find out their powerboat insurance rates and policies.
To help you choose what policy you will want to go with and which powerboat insurance company to consider, read and understand each companies policy. Will the policy offer comprehensive coverage? Many times after a natural disaster like a hurricane or tornado, many boats were abandoned by their owners because their insurance policy did not provide them with even the money needed to salvage their boats. So be aware of this.
You need to realize that there are various degrees of coverage and make sure to ask questions on what is and what is not covered. If you have a fuel spill are you covered? If you sail offshore, are you covered? Does your policy allow for third-person liability coverage? If that person is driving your boat and they have an accident, who is going to pay for the damages to the boat, to the other boat or object, and to the people who were involved? Can the powerboat insurance company you are asking provide concrete answers? Is it evasive? Make sure to listen carefully and consider which company provides the best coverage.
Another important factor in powerboat insurance is figuring out the value of your boat.
An insurance company can provide you with a policy directed towards the agreed-upon true value or the actual cash value. This agreed value will cover the replacement of your powerboat if you need to exercise this option. The actual cash value considers the boat in terms of a depreciating factor of around 10%. Most of the time you will find that the agreed value will be the best policy.