Boat Insurance Rates

It is very expensive to get any boat repaired and you will have to shell out a lot of money, especially if the boat is not a small one, that cannot be mounted upon a trailer. Hence, every small dent and damage is bound to hurt a lot. The boat insurance is thus a very important aspect of owning a boat. The insurance basically makes it a lot easier to repair and maintain the boat. However, there are three very important things that you need to consider if you are purchasing a policy, they are, insurance rates, premium of the policy and coverage provided by the insurance company.

What is Boat Insurance

The boat insurance policy and coverage basically works in a different manner as compared to other coverage such as health insurance or auto insurance. Thus the quotes, coverage and premium calculations work in a pretty different manner. Companies that provide boat owners with insurance coverage, usually have policies that cover the following types of boats.

• Fishing Boat
• Runabout
• Mini Jet Boat
• Sailboat
• Bass Boat
• House Boat
• Cabin Cruiser
• Pontoon
• Personal Watercraft

In order to get a reliable and authentic quote from a really good company, approach companies that specialize in boat insurance. You may also approach some larger companies that provide liability insurance in addition to boat insurance so that you have more foolproof coverage, when you set sail. I would also recommend you to choose an insurer who has an office in your locality, as it proves to be beneficial.

Choosing a Boat Insurance Policy

On receiving your application, the insurer will forward you the quotes, terms and conditions of the policy. Most of the insurers have a good website that will give you an instant quote. However, if you have a boat that is bigger than 36 feet, or is custom-made, or is older than 30 years, you will have to wait for a few days. Once you decide to purchase the policy, you will have an audit by the insurer, who will examine the boat. After the first premium, you become the policy holder. A policy holder is supposed to pay an annual premium to the insurance company. In case of mishaps, damages and repairs, the insurance company reimburses a full or a partial claim. Usually a claim is compensated in the following situations:

• Collisions
• Accident
• Sinking
• Vandalism
• Mischief

There are some other situations that can be compensated for, however the provision of the compensation, depends upon the terms and conditions of the insurance policy. Some of the variants of policies have been specified in the following paragraphs.

How Much Does Boat Insurance Cost

The average boat insurance rates, are determined on certain important factors such as, size of the boat, length, type of boat and average cost of repairing the boat. The boat insurance average cost is also determined on the basis of mechanics, carpenters, painters and cleaners charges, as well the cost of material such as timber that has been used to construct the boat. The age of the boat and its size also matters a lot when it comes to insuring the boat. The premium of the insurance for a 25-footer will be around USD 300 to USD 500 per annum. Luxury boats will, however, have a large insurance premium which depends upon the fixtures that have been fitted onto the boat . For example, if you have a set of fixtures, that totals up to USD 1000, then the total amount is divided into the period of the policy, which contributes to the raise in the rate of premium.

The best rates for boat insurance are usually in the range of USD 500 per annum with almost all risks covered. It is best to have the boat insured as a mishap is a huge financial set back. There are also many different types of legislation which make the insurance a compliance for boat owners.