For a new boat owner, boat insurance may seem like an unnecessary investment to make.
However, boats of all types and sizes can be involved in accidents and the target of theft.
It is likely that you will want to take guests on the water with you, and boating accidents occur at alarming rates.
Without proper coverage in the unlikely event of an accident you could be left holding the bill without the proper insurance cover to protect you.
Much like car insurance, the type of boat that you own and how you use the boat will affect the boat insurance policy price.
Your experience also comes into play, as if you have had previous claims your risk factor will be raised.
Often taking classes to further your skills will help lower your rate.
The basic coverage you can acquire for your boat is liability insurance.
Liability insurance will protect you should you damage another boat or the dock.
Medical coverage is a must have, as water sports in general have a high rate of injury.
Without medical coverage you will be responsible should someone slip or fall on you boat's wet deck.
Comprehensive insurance will cover your loss in the event of theft or vandalism, while collision protects the value of your boat should you be involved in a boating accident that is your fault.
One of the most important things to do prior to obtaining boating insurance is to get a professional appraisal done for your boat.
Boat prices fluctuate based on demand, the condition of the boat, its age, and overall condition.
It is recommended that you get a new appraisal every few years.
Taking care of your boat and doing proper maintenance will help keep your boat's value high, and the appraised value is what you will receive in the event the boat should sink or be beyond repair after an accident.
Should you fail to have an independent appraisal done regularly, your insurer will base the payout amount on the current book value.
This amount can often be lower than the value of your boat especially if you have done upgrades of any sort.
In the unlikely event that you do need to make a claim, you should carefully consider your costs of repairs.
If the damage is not major, often it is best to cover the repairs yourself, as each claim will work as a strike against you and can negatively impact your next year's premium price.
As a rule, if the cost of the damage repair is close to your deductible amount, avoid making a claim.
If the accident involved any injuries however, you should always report the claim.
Often people will not see the result the accident has on their health until after the time period you have available to make a claim.
Medical bills can add up very fast, and you do not want to be left holding the bill because you failed to properly report to your insurance agent.