What is Watercraft Insurance?

Buying a sailboat, yacht, jet ski, or other watercraft can be an exciting experience. Once you have set up your new boat, you should consider purchasing watercraft insurance to protect against damages. There are many good reasons to invest in this type of insurance.

There are many states that currently require boat owners to purchase insurance. One of the factors for this is the increasing number of property damage cases involving boats and watercrafts. Even if watercraft insurance is not a requirement in your state, it is usually a good idea to purchase some type of policy.

When discussing a watercraft policy with your insurance agent, you want to look for a policy that includes comprehensive coverage. In other words, the watercraft insurance policy should cover liability, theft, physical damage, medical payments, motor, trailer, docking fenders, boat covers, as well as any communication devices that you may have.

Although it is true that this insurance can be costly to obtain, many boat owners are entitled to certain discounts on their policy. These discounts might include reductions for having a new boat, an automatic fire extinguisher, and/or a burglar alarm as well as having completed an approved boating education course. Your ship-to-shore ratio may entitle you to further discounts on your watercraft insurance policy.

Like shopping for auto insurance, it is important to compare the rates offered by different companies before you make a final decision. A good place to start is with your current insurance company, which will usually offer discounts for having multiple policies with the same agency. Watercraft insurance is also offered by many automobile insurance companies, or these companies may be able to refer you to an insurance agent who specializes in boat policies or to another reputable marine insurance company. If you are shopping for a company on your own, be sure to check the Better Business Bureau so that you don't get ripped off.