How Much for Boat Insurance?
A common question for boating insurance is how much for boat insurance? This is a great question and just one of many questions that potential boating insurance buyers will have. You may be thinking why do I even need boating insurance? That is another great question.
Boats are not covered under regular insurance options such as car insurance or auto insurance. If you have home insurance and have a small boat, it might be covered under your policy. When your policy does not cover your vehicle, you will need boat insurance.
There are also a lot of specifications and factors that go into how much your insurance is going to cost. Depending on your insurance package, you should be able to get the coverage you need for your situation.
Below are five things you should know about boating insurance before buying it:
What Kind of Vehicle
Yes, depending on what kind of water vehicle you have, there are going to be different insurance options and packages. As mentioned above, your boat might be covered if you are a homeowner. If you are not a homeowner and have a boat, you will definitely need boat insurance.
There is a main issue to consider before you decide what insurance package you want. That factor is whether you have a boat or a yacht. A boat is anything that is 26 feet or under. A yacht is anything that is 27 feet and over. If your boat is a smaller boat, your cost is going to be less compared to a yacht.
Different Factors
There are a lot of different factors that go into boat insurance. These factors vary and are a headache to try and memorize. Basically, all of the specifications of your vehicle are going to go into your insurance to determine coverage and price. The year and make of your boat are going to be important. How fast your boat can go and even where your vehicle will be used to determine the coverage of your insurance package.
You may be able to save some money if you are not using your boat during the winter or colder months. Time of year is another factor that goes into determining how much your boat insurance will be. Talk with whoever is in charge of your insurance and see what is possible. If you are able to save money that way, you will not be so worried about other factors with your boat.
How Much For Boat Insurance
It is time to answer the main question everyone wants to know about, how much for boat insurance? On average, it will cost you anywhere from 250 to 500 dollars a year for boat insurance. If you have a yacht, anything that is over 27 feet long, it is going to be more expensive for insurance.
After all of the different factors are settled, your insurance broker can get down to business. That’s when you can discuss the dollar amount and everything else that will determine what you will pay. Paying for boat insurance is usually paid once a year and not month by month. You will have to factor that in when budgeting or doing finances. You do not want to be short on money because of boat insurance.
Overall, it is important to consider boat insurance before you even purchase a boat. If you are not a homeowner or your home insurance does not cover your boat, you will have to pay out of pocket. You will need boat insurance for your boat because if your boat crashes or gets in a wreck, it will be more expensive to cover costs and damages.
What Are My Options
If you have a boat, you are going to have two main options when it comes to different policies. The first policy is going to be based on the value of the boat when it was purchased. Your coverage will go off of the cost of the boat at the time when the policy is written. This is generally the option that most boat owners go with. Your boat will be covered without depreciating. This gives you peace of mind that your boat is covered for years to come.
The next option is a cash value policy. This means that your policy will base coverage on how much your boat is worth at the time of the claim. A cash value policy is a good option if you have a brand new boat. It is important to remember that boats depreciate with time. If a cash value policy is a better option up-front, you can switch over to the other policy when the time is right.
Shopping for Boating Insurance
You have done the research and are ready to start shopping for boating insurance. So how is it done? The best thing to do is to first find a place that offers boat insurance. The next best thing is to find an insurance broker that can compare boat insurance packages for you. If you are not sold on the insurance broker option, let us do some explaining.
A broker will compare different boat insurance options and share them with you. From there, you can ask any questions that you might have. If you have a good boat insurance broker, they will answer all of your questions thoroughly. They can also give you their preference or opinion if you want to know what they think.
If you have no idea where to start, look at Insurance Professionals of Arizona (IPA). We can give you a good idea of who to call. You can even set up an appointment with one of our professionals to discuss boating insurance.
There are a lot of things that go into this kind of coverage. If you are still curious about how much it is for boat insurance, give us at IPA a call. We would love to show you the different options available and how much they would cost you.