When buying a boat, you may have visions of enjoying incredible times on a lake, ocean or other bodies of water. While you may not think about a worst-case situation, such as being involved in a boating accident or having your boat vandalized or stolen, these are only some of the issues that could interfere with your enjoyment of your vessel. They could also potentially result in substantial financial loss. Buying boat insurance is an excellent way to protect yourself against these and other possible risks, and it may even be required in some cases.
There are numerous types of boat coverage that you could purchase. Liability insurance, for example, may pay another party for any damages that you cause while operating your vessel. This may include boat or property damage, medical bills, lost wages and more. Comprehensive insurance, on the other hand, may pay for your own expenses if your boat is damaged. Personal injury insurance may pay for medical expenses if you or someone else on your boat is injured. For each of these and other coverage types available, the insurance policy will only pay benefits up to the coverage limits. You will need to pay any excess expenses. In addition, you may need to pay a deductible for each separate boat claim that you file.
If you plan to tow your boat, you may also need to add tow coverage to your policy. This add-on may offer coverage for the trailer, such as if it is damaged in a car accident or stolen. It may also include additional liability coverage if you cause damages to someone else while using the trailer. Another type of add-on that you may purchase is water towing service. This may pay for expenses you incur if your boat breaks down in the water and you require towing to the nearest dock.
In some cases, you may be required to purchase and maintain a minimum amount of insurance per local laws, or your boat lender may have insurance requirements. When setting up coverage for your boat, ensure that you use these requirements as a minimum threshold for the insurance that you purchase.