With the boating season getting into top gear for another year it is a good time for re-evaluating what boaters insurance you currently have and whether it is good enough to ensure you are not left out of pocket in the event of making claim.
There are a few fundamental errors that a number of boat owners make with their insurance coverage and also a fair number of widespread misconceptions, so here is a look at some of those frequent mistakes and how to protect your boat from causing you some serious pain in your wallet.
Some boat owners drop their insurance coverage when the finance has been paid off and they own their vessel outright. It is important to remember that you still need coverage for other situations even if you are prepared to take the risk of the financial exposure of having your boat stolen without compensation.
Boat insurance covers personal injuries and also environmental cleanup liability which can cause a serious dent in the family finances if you do not have the protection of an insurance policy.
Motivated by price
It is understandable that with pressure on family finances, boat owners may be motivated by price and arrange coverage based simply on price alone. Specialist companies such as BrokerLink are equipped to assist you make the right choices and ensure that you pay for what you need but make some savings perhaps by lowering the policy limit or coverage in certain areas.
If the goal is to reduce your monthly premium costs then one of the easiest ways to do that would be to lower the liability level or other policy limits in order to drive the cost down. As your insurance company to help identify where they might have too much coverage and make sure you avoid having too little coverage meaning you don’t get the payout you need in the event of a claim.
Chopping out some deductibles
The general advice for any insurance product as well as boating insurance is to choose deductibles that are not realistic or affordable. It may be considered a good way of getting the premium cost down by agreeing to stand a fair portion of a claim yourself but make sure that it is an amount that is affordable.
Out of season
A common mistake made by boat owners is to cancel their insurance during the off-season. The problem with this is that you run the risk of financial exposure if your boat is damaged when it is not in the water. Dropping coverage during the out of season period could leave you facing a serious financial headache if your boat is damaged by fire or maybe even stolen while it was in storage and out of the water.
If you are looking to reduce your insurance costs you could try qualifying for some safety credits by going on a boating safety class, which should persuade your insurer to offer a slightly lower premium as a reward.
Boating is a fun and pleasurable activity enjoyed by all the family so don’t run the risk of spoiling your enjoyment by cutting corners when it comes to insurance.
Adam Becker enjoys boating with wife and his cat when weather permits. When he is not upon the open seas, he’s blogging away behind a computer.