How Do You Choose Boat Insurance?

How Do You Choose Boat Insurance?

When choosing boat insurance, see if you save any money by bundling the policy with other policies, such as homeowners and car insurance, recommends Bankrate. Also, determine if you want an agreed-value policy or a market-value policy. In general, newer boats have agreed-value policies.

In an agreed-value policy, the insurer and the boat owner determine the worth of the boat up front, explains Bankrate. With a market-value policy, the boat is insured for its current value; such policies are much cheaper, costing 25 percent less in some cases. To save more money on boat insurance, focus on safety.

This means taking a boating class and outfitting your boat with safety features, such as an engine kill switch. Another way to save money is to have a longer lay-up period during which you don't use your boat.

Boat insurance comes with navigational restrictions, so be aware of areas you want covered when you're shopping for policies, says Bankrate. Navigational limits differ depending on whether a boat is smaller, such as up to 26 feet, or larger. Policies also tend not to cover certain areas, such as those frequented by pirates.

Insurance is available for one-time boat journeys, but always check with your insurance agent that you have enough coverage, says Bankrate. For example, you may need an endorsement to get your boat out of the way if a hurricane is in the picture.

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