How do you compare different boat insurance policies?


Quick Answer

When comparing different boat insurance options, note whether the policies cover agreed value or market value of the boat, reports Bankrate. Compare the boat size and navigational limits of the policies you are considering. Look for policies that offer discounts when you install safety features on your boat, take boating classes and extend lay-up periods.

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Full Answer

Boat insurance policies that offer agreed value, which is an amount that you and the insurance company agree upon in advance, may be preferable if you own a newer boat, but these policies are more expensive, advises Bankrate. Policies that pay market value take into account the boat's depreciation, but they are significantly cheaper. Buy a policy corresponding to the size of boat you own, as each type of boat has its own insurance prices and features. Compare deductibles and find out if they differ depending on the type of claim, adds Boating Magazine. Be sure the claim settlement sections of the policies you are considering have arbitration clauses in case a third party has to come in to resolve differences.

Check the navigational limits of the policies you are comparing to be sure you are covered wherever you plan to go, explains Bankrate. One-time trips to places beyond the navigational limits may need special coverage. Select an insurance policy that suspends or reduces coverage during the part of the year when you are not using the boat.

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