Question 1

Is boat insurance required?

Accepted Answer

Boat insurance is always recommended, even if your state doesn’t require it, or if you buy your boat in cash and don’t use a boat loan. However, it is required by most marine lenders if you opt for paying for your boat with a boat loan.

Question 2

What are the types of boat insurance?

Accepted Answer

The two main types of boat insurance are an agreed value policy and an actual cash value policy. The agreed value policy is based on the value of the boat when the policy is written. It’s typically the more expensive policy for upfront costs but there isn’t any depreciation for the total loss of a boat. The actual cash value policy only pays out the actual cash value of the boat at the time of the reported loss. This policy is less expensive upfront but takes depreciation into account over time.

Question 3

What is not covered by insurance?

Accepted Answer

What is and is not covered will depend on the type of boat insurance policy you have. Make sure to read the fine print and have the insurance agent explain anything you’re unclear about. You don’t want to choose a policy and realize that certain things aren’t covered after you already purchase it.

Question 4

What happens if you don't have boat insurance?

Accepted Answer

If you don’t have boat insurance, you may be breaking your financing contract if you have a boat loan. You may also be breaking the law in some states that require boat owners and operators to have up to date boat insurance. Additionally, you’re putting yourself at risk for litigation, and tons of headaches, and out-of-pocket expenses. You may get sued if you don’t have boat insurance, you may get a citation, and your entire boat loan may be due. It’s not worth it to take the risk. Make sure you and your boat are protected and purchase marine insurance.

Question 5

How much does boat insurance cost?

Accepted Answer

Boat insurance may be as affordable as $200 to $500 per year for a small inexpensive boat and may cost tens of thousands of dollars per year for a yacht. Typically, expect to spend around 1% to 5% of the boat’s value per year as a rough estimate for boat insurance. For example, if you have a boat that is worth $100,000, expect to spend anywhere from $1,000 to $5,000 per year for a comprehensive boat insurance policy. That breaks down to about $83.33 to $416.67 per month.

Question 6

What's included in a boat insurance policy?

Accepted Answer

Just like your boat may be very different from your neighbor’s boat, your policy will be as well. You want a policy that specifically covers your type of boat, its intended use, its value, and is based on the location it will be housed because boat insurance costs vary greatly even from city to city and especially from state to state. Marine insurance policies not only cover boats, but they can also cover yachts, jet skis, sailboats, dinghies, boat clubs, and boat rentals and personal watercraft rentals.

Question 7

Where do I buy boat insurance?

Accepted Answer

Trident Funding can guide you in the right direction of recommended and reputable marine insurance companies. When you work with them to get a boat loan, they don’t just stop at the loan, they help you with the entire process of buying a boat. This includes your boat insurance needs, registration, title, Coast Guard inspections, and the closing process. Additionally, check with your current auto and home insurance provider and see if they offer marine insurance. You can also check with your friends who own boats and see who they recommend. A local marina and boat dealer will also be able to recommend some marine insurance companies.

Day: January 30, 2023

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A Guide to Boat Insurance