There are few things better than riding on one of the many beautiful lakes in Colorado. There are several incredible lakes that you can enjoy every weekend. If you own a boat, you know how much they can cost. Boats can end up being one of the most expensive hobbies, but what if something were to happen to you precious boat?
There are over 75 million people across the United States that enjoy recreational boating, according to the National Marine Manufacturers Association. You never know what’s going to happen to your boat while you’re out on the water, while it’s docked, or while it’s sitting in your backyard during the winter. Thankfully, that’s where boat insurance can come into play. If you want to protect your investment on the water, boat insurance is one of the best ways to do that.
Shopping for Boat Insurance
There are dozens and dozens of insurance companies on the market that offer boat insurance. In fact, plenty of the “big names” on the insurance market have boat insurance, like Progressive, Allstate, and State Farm. When you’re looking for the perfect insurance plan to protect your boat, it can be an overwhelming and confusing process, but not having boat insurance could leave you with some massive bills and nothing to hit the water with this summer.
One common misconception about your boat is that your homeowner’s policy is going to automatically cover your boat, as long as it’s parked in your driveway or behind your home. More than likely that couldn’t be more wrong. Your homeowner’s insurance might give a minimal amount of coverage, but it won’t be nearly enough coverage to repair any damages. Your homeowner’s plan will only cover a small boat that doesn’t have any engine.
When you’re shopping for boat insurance, it’s important that you understand the difference in “agreed value” and “market value” policies. They are very different, and those differences are going to greatly impact the coverage that you have. Your boat insurance work similar to your auto insurance plan.
With agreed value, the insurance company and you are going to agree on the value of the boat beforehand. If something were to happen to the boat, then you’re going to get the agreed upon value, regardless of how long you’ve had the boat.
With market value, on the other hand, the value of the boat is going to slowly go down the longer that you own the boat. If something were to happen to your boat, like a wreck or act of nature, then you’re going to be paid the current value of the boat. For example, let’s say you bought the boat in 2008, then you’re going to receive the amount of money that it would cost for you to purchase the same model of a 2008 boat.
If you own a new boat, in the past couple of years, then you’ll probably want to go with an agreed value policy. More than likely, you’ll own that boat for several years, and you won’t have to worry about the depreciation of the value of the boat.
Boat Out of Water
Every year, we get a lot of questions about the protection of a boat when it’s not in the water. Would your boat insurance policy cover your craft when it’s on a trailer? More than likely no, but the boat is going to be protected by your car insurance. If you were to back into another vehicle, and it damaged your boat, then it will ONLY be covered by your auto insurance and any protection that it provides.
If your boat is in your driveway, then there is only going to be limited protection. You probably won’t get any coverage if anything is stolen, but only if it’s damaged by nature. If you want to get some extra protection while your boat is at home, then the best idea is to purchase an additional umbrella policy. This will give you additional coverage while your boat is sitting on your property.
Saving Money On Your Boat Insurance
There are a couple of ways that you can save money on your boat insurance premiums. The first thing that you should do is take a boating class. Just like with defensive driving classes for an auto insurance plan, taking some boating classes will get you a discount with the insurance company. Depending on the company, you could get a 5% discount on your premiums. That one of the simplest ways to keep more money in your pockets every month.
Another way to save money is to invest in all of the safety features of your boat. If you put wireless auto tethers on your boat, which will automatically turn the engine off if you fell off the boat, you could also save money on your premiums. The safer that the boat is, the less risk that you’ll pose to the insurance company, which translates into lower rates.
Another simple way to save money is to bundle your policies with one company. Just about every company is going to give you a multi-policy discount if you hold more than one plan with them. That doesn’t mean that you should automatically buy a plan from the company that you already use. Every insurance company is different, and all of them are going to have different rates. It’s important that you compare several companies before you decide which one is going to give you the best coverage for your boat.
At Longevity Brokers, it’s our mission to ensure that you have all of the coverage that you need. Not only can we help you protect your boat, but we can also give you the coverage that you need for your home, your car, and much more. We are independent agents, which means that we work with all of the top companies in the Denver, CO area.
If you have any questions about boat insurance or other insurance plans, you can use our contact form or call us at (720) 209-4598.