Whether you currently own a boat or you’re thinking about purchasing one, it is essential to know the basics of boat insurance and the various coverages. If you own a big luxury yacht or a jet ski, Saferoad Insurance Services will provide you with the best information and options for your specific watercraft insurance needs.
Unlike other insurance policies like homeowners and automobile insurance, watercraft insurance varies from company to company. Nonetheless, insurance companies that offer watercraft insurance typically offer a wide variety of coverages and add-ons. So, before you decide on a policy, here are our top tips for insuring your watercraft in 2022.
California Boat Insurance 101
California does not legally require watercraft owners to carry insurance, but many marinas require you to have minimum insurance to store your boat or use their facilities. If you took out a loan to buy your beauty, the loan company might require you to maintain a basic level of insurance until you pay off the loan.
The coverage you need depends on the boat's value, age, and motor size. Like other vehicles, top-performance watercraft are more likely to command a higher level of coverage to compensate for damages they can inflict.
Saferoad Service Insurance offers multiple options to protect your watercraft in Long Beach, California. These coverages include the following:
- Physical Damage coverage protects your boat and its attached fixtures from vandalism, theft, wind, hail, collision, fire, and theft.
- Liability Insurance covers any bodily injury and property damage the boater may cause to someone during an accident.
- Medical Payments coverage includes medical payments for the policyholder and their passengers.
- Guest Passenger Liability Insurance covers expenses if a passenger causes an accident that involves property damage and other liability while steering the boat.
Boating season is among us, and boating in California is a pleasurable leisure activity for the whole family to enjoy. When searching for boat insurance, it is best to select the coverage that meets your needs and allows you to feel comfortable about your boat's exposure to incidents and accidents.
Since every boatowners situation is different, it is essential to decide what coverages matter most to you. Let us begin our top nine tips for insuring your watercraft in 2022.
Boat Insurance Doesn't Cover Your Watercraft Everywhere
Most boat insurance policies are only valid in inland or within coastal United States territorial waters. If you decide to take a trip to another country or the open sea, your insurance coverage may not extend to those areas.
The Value of Your Boat Can Mean Different Things
Insurance companies can calculate the value of your watercraft in numerous ways. It is essential to understand the methods they use. The most common boat valuation processes are market value and agreed value. Your boat's value can also determine your boat's insurance rates.
Market Value
Market value is also known as the actual cash value. The market value is what your watercraft is worth when you file a claim or the estimated price you could sell your boat for on the open market.
Agreed/Replacement Value
The agreed value is the fixed dollar amount you and your insurer agree will be paid in the watercraft is destroyed, totaled, or stolen. This value usually reflects what it would cost to replace the watercraft.
Consider Adding Pollution Liability Coverage
In addition to your coverage, you should consider adding pollution liability insurance. This add-on will protect you from claims for cleanup or third-party damages from accidental discharge of fuel or oil that can occur if there is a fire, collision, sinking, or grounding. You could be held responsible for paying hefty fines or cleanup bills without this policy.
Include Fishing Equipment Coverage
If you are using your boat for fishing, you should consider including fishing equipment coverage in your insurance policy. Fishing does not come cheap, and you have quite the equipment inventory. Insuring your gear will cover loss or damage to your fishing kit, whether you’re on board your own boat or a rented one.
Consider Adding Tow Trailer Coverage
Suppose you engage in an auto accident while towing your watercraft, injuring someone, or damaging their vehicle. In that case, through our low-cost auto insurance policy, your liability coverage can protect you. Our basic watercraft insurance policy covers damages to your boat, and you can add extra protection by adding tow trailer coverage to your policy.
Evaluate Your Specific Insurance Needs
Always remember to view your options and evaluate the coverage your watercraft needs. Each boater's experience is different; therefore, so are their policies. Adding specific add-ons that are not within the basic coverage may benefit some more than others.
Ask Other Boaters About Specialized Policies
Don’t be afraid to ask fellow boaters about specific specialized coverages when selecting boat insurance. If you are on the fence or unsure, contact us at 877-945-7233, so we can answer your questions and walk you through the insurance process.
Think About Adding Personal Effects to Your Coverage
It is always better to be safe than sorry. Consider adding personal effect coverage to your policy. The covered items can include clothing, fishing rods, reels, scuba gear, and other personal items on your watercraft.
Different Ways to Lower Your Boat Insurance
To lower insurance costs and dodge preventable fines, you should:
- Have Coast-Guard-approved fire extinguishers
- Building your policies, like watercraft and auto insurance
- Complete boat and water safety courses
- Purchase a diesel-powered boat
- Go a couple of years without a claim
As you select your policies, you might be wondering how much this will cost you. Numerous factors determine your insurance rate. Read below to see what can affect your rates.
What Factors Affect Your Watercraft Insurance Rate?
Credit Score
Your credit history will aid in determining your watercraft's insurance rates. Insurance companies can view your credit history without affecting your credit score. Depending on your credit history and score, your payment could vary.
Accident and Claims History
Safely operating your automobile translates that you are likely to run your watercraft safely. Having a clean claims record can help give you the best rate possible.
Location
Where you plan to use your boat can significantly affect your insurance rate. Areas with coastal exposure are considered high-risk and require higher speeds, and inland boaters are considered an insignificant risk, so they can take advantage of lower rates.
