Watercraft insurance is a broad term that covers three kinds of insurance: boat insurance, yacht insurance, and personal watercraft insurance. It offers protection against damages to motorized vessels that can reach speeds of at least 25 miles per hour (mph). Some examples of costs that watercraft insurance policies cover include physical loss or damage to the boat, theft of the boat, and towing services.
Learn more about Watercraft Insurance
Depending on the policy, you might find watercraft liability coverage that protects against bodily injury to people other than the boat’s owner and their family, as well as guest passengers who are using the boat alone, plus medical payments for injuries to the owner and their family. However, some policies might require you to buy extra liability coverage as an add-on. The kind of insurance you choose is influenced by the size of your vessel.
It works a lot like other insurance products. By paying a series of premiums, the policyholder gets protection from certain rare but potentially expensive risks. The cost of premiums can vary quite a bit based on factors like the size of the craft, its age, and how it’s going to be used, ranging from pretty affordable to quite expensive. When an insurance company is underwriting a policy, they’ll also look at the policyholder’s history of previous claims.
Conclusion
Only a handful of states require boat owners to get watercraft insurance. Still, many owners choose to buy it anyway, partly because it’s necessary to secure a boat loan. Marinas might also insist that owners have watercraft insurance as part of their rental agreements.
Even if your boat isn’t worth a lot, getting watercraft insurance is smart due to the potential for injuries on the water, especially from collisions. Even if you’re not responsible, you could end up spending a ton on legal fees to defend yourself—likely more than what you’d pay in insurance premiums. If you decide to go for this insurance, make sure to compare policies from different companies before settling on the one that suits you best. Like with all insurance, it really comes down to how much you value having peace of mind.