Boat insurance is necessary for one who purchases a water craft; it is the law in all 50 of the states as a matter of fact. Whether it be a little boat you take out for fishing occasionally or a one hundred foot (or bigger) yacht, coverage is mandated.
Boat insurance was devised to protect your boat whether you’re on the water or if it is being towed behind your car or truck. The insurance policy premium is determined by the value of your boat and your piloting record, which is the watery equivalent to a driving record. You pay a monthly amount for an agreed upon level of protection. Once properly covered, you may file a claim at any time. As long as you pay your premiums on time, the process is simple and easy.
In order to control premium costs, deductibles are made available and, as a result, a certain amount for your insurance policy must be paid before your boat repair or replacement can commence. For example, a policy with a $1000 deductible means you will have to pay out-of-pocket the first $1000. The policy then kicks in for repairs above that amount. (The deductible requirement starts anew every year.)
Essentially, a proper boat insurance policy gives you the ability to repair or replace your boat or to receive special services that are needed as a result of a boat accident. Your insurance provider can pay the total value of your boat if it sinks or is somehow destroyed. Additionally, this type of policy provides help if you find yourself in trouble at sea. Ask your insurance professional for more information on how comprehensive these special services can be.
Your policy premiums will be more costly if you obtain coverage that is more comprehensive. Policies with this kind of coverage can replace your boat, personal items on board and any medical bills that result from accidents. It may be more expensive, but it gives you more services.
Collision policies alone can protect you in a myriad of ways, but do leave out these aforementioned special services. You may acquire compensation to get your boat fixed or replaced, but you will not receive any additional special benefits from the insurance company. The policy is significantly less costly and it does help you when you have no need for these extra services.