What You Need to Know About Insuring Your Boat

Owning a boat is not all fun and parties. There’s quite a bit to know when it comes to purchasing a boat and one of the most important things you’ll need to consider is the insurance needed for the boat. Willoughby Insurance can help you along the process of securing insurance for your boat or just answering basic questions if you are thinking of purchasing a boat.

As with any type of insurance, there are determining factors that affect the cost of your coverage. Some of the basic factors are the age of the boat, value, speed, and where it will be used are just a few of them but there are others that you’ll discuss with your lender before settling on a policy.

Types of Insurance

The two types of boat insurance that you have to choose from when it comes to boat insurance. The first is agreed value and the second is actual cash value. The main difference between the two is how the value of the boat depreciates. When it comes to agreed value, the policy covers the boat based on the value at the start of the policy. On the other hand, the actual cash value will only cover the value of the boat that the time the policy is being used. This means the longer you have the boat, the more the value will decrease but it also can save you money.

What Does It Cover?

The major determining factor that will change the type of coverage you need is how you choose to use your boat. If you plan on boating in rough weather, you may want an all risk policy as it will give you the best protection. All risk doesn’t include every scenario so you may want to discuss extra coverage with your insurance company to get the best options for you.

Do I Really Need It?

When it comes to insurance, the common belief is it’s better to have it and not need it, than to need it and not have it, and that is because you simply just never know if you are going to use it. Even if you don’t plan on taking your boat out very often, it’s still a good idea to have some sort of coverage just in case an emergency happens and your insurance can help to recover the cost of damages.

Since owning a boat isn’t as common as owning a car, you may want to discuss the claims process with a few different companies so you are choosing the right company for you. You may even want to ask your friends if they own a boat or know someone that does that can help answer some general questions about their company’s policy or if they get a possible referral. It’s also a good idea to do your own research and don’t forget to check with local agents versus the larger companies. Another thing you may want to do when shopping around is discuss your options to bundle a policy with the company who handles your car, home or life insurance as they may be able to offer you a discount.

Reach Out Today!

Deciding to purchase a vessel is quite a big decision and we want to help you with any questions or concerns you may have, as well as get you set up with a policy that suits your needs and budget. Don’t hesitate to reach out to the helpful team at Willoughby Insurance of Buffalo, NY.