Determining the Cost of Boat Insurance
Owning a boat is a major expense. You can spend thousands of dollars on the boat, and then spend thousands more for upkeep and maintenance. Buying boat insurance is one way to protect the investment you’ve made.
First, you need to know if your water vehicle actually counts as a boat. Generally, kayaks and canoes don’t count as boats for insurance purposes. But cabin cruisers, trawlers, bowriders, catamarans, and yachts are considered boats.
Several factors determine how much you’ll pay for coverage. These factors include:
1. Your home state and its boat insurance laws. Some states make it mandatory for boat owners to get liability insurance. And in most cases, each state sets a minimum requirement for liability. You’ll have to at least get a policy with the least amount of liability coverage required by law.
2. How often you’ll use the boat. A boat owner might keep a boat in storage for most of the year. And for a few days each year, they take the boat out on the water. But another boat owner might practically live on the boat. And spend more time on the water than off. An insurer will take boat usage into account when pricing a boat policy.
Getting the Best Coverage
Your insurer can help you determine how much coverage you need. You’ll also need to know what’s offered by any policy you’re considering. If you want basic liability, then you can get a simple liability policy. But if you’re looking for thorough coverage, you should consider something like collision coverage or comprehensive coverage.