Auto Insurance Amercia offers yout immediate coverage for your boat and watercraft to make your boating worry free.
When purchasing insurance for your boat, you should know:
- Types of coverage available
- Limits of coverage available
- Deductibles
- Other options available
Your boating experience, automobile driving record, and the type of watercraft you purchase are important factors in your premium rates. Conservative family boats generally have reasonable insurance rates.
Various boat safety courses are available through the U.S. Coast Guard and private boat owners associations. Auto Insurance Amercia offer premium discounts for persons who successfully complete boating safety courses.
INFORMATION NEEDED TO BUY WATERCRAFT INSURANCE
- Names, ages, drivers license numbers, and drivers info for owner and all operators of the boat
- Purchase price of the boat, motor, and trailer (if any)
- Type of watercraft, inboard, outboard, jet, sailboat, houseboat, jet ski
- Maximum speed
- Type of hull construction, wood, fiberglass, metal, etc.
- Serial numbers for the boat hull, motor(s) and trailer (if any)
- Name and address of bank, finance company or credit union financing boat (if any)
- Any boating safety courses successfully completed
A brief description of coverages generally available for Watercrafts offered by Auto Insurance America:
BODILY INJURY LIABILITY
If you are partially or totally at fault for a watercraft accident, this coverage pays for bodily injury to others, including guest passengers riding in your watercraft. Damages you may be responsible for include medical bills, lost wages, replacement services, loss of life, permanent disability or impairment, pain and suffering, legal expenses, and other expenses allowable by law.
Although not as visible as in auto insurance, if you hit another boat, run over a water skier, slam into a dock, or should a guest on your watercraft be injured, you may be legally liable for their injuries and can be sued.
Many basic watercraft policies exclude "water ski liability" unless you pay an additional premium for coverage. If you intend to tow any skiers, be sure to include water ski liability in your coverage.
Most automobile insurers include on your personal auto policy, liability insurance for towing your boat on the highways, in the event that your boat or utility trailer causes bodily injury or property damage for which you are liable. You should always check with your agent on coverage questions.
If you own a home or property or have assets to protect, you would be wise to purchase higher limits of bodily injury liability insurance coverage rather having to file bankruptcy or paying off large legal judgments for years.
Watercraft owners liability insurance is usually inexpensive and generally based on the horsepower, type of propulsion, length, and maximum speed of the boat. Obviously, a conservative boat with a maximum speed below 40MPH will have far lower premiums than a jet boat that "flies low" at 60-100MPH. Insurers may refuse to insure an overpowered boat with too much horsepower for the hull size. Check with your agent for insurance rates before purchasing the watercraft.
If you have a low value, conservative boat, and only want to carry liability insurance coverage for injuries and property damage to others, most homeowners insurers will add boat liability coverage to your homeowners policy, up to a certain size and horsepower boat, for only a few dollars annually.
There are mandatory laws on fire extinguishers, life preservers, night lights and other safety equipment, you should be sure that you are in full compliance with all U.S. Coast Guard regulations since these folks frequently visit boaters on the water to check equipment compliance.
PROPERTY DAMAGE LIABILITY
If you are partially or totally at fault in a watercraft accident, this coverage pays for property damage to others. This coverage is usually included with your bodily injury liability insurance.
Please be aware that you can be sued and be held personally responsible for property damage above the limits of your policy, so if you own a home or property or have assets to protect, you would be wise to purchase higher than minimum property damage liability limits rather than having to file bankruptcy or paying off large legal judgments for years. Watercraft liability insurance is generally inexpensive.
PHYSICAL DAMAGE COVERAGE
This coverage repairs or replaces your watercraft, motor(s) or trailer in the event of loss by fire, theft, vandalism, windstorm damage, flood damage, sinking, collision with another object, or many other events. Because watercraft have substantial optional equipment, coverage should be purchased carefully from a watercraft specialty insurer.
Physical Damage Coverage is generally sold with a choice of deductibles. Deductibles are dollar amounts that you agree to pay for each loss, before your insurance "kicks in," so you are "self insuring" and will pay "out of pocket" for damages below your deductible. You can’t save up all the dings and other damage to your watercraft, motor or trailer and get them repaired under one deductible.
Auto Insurance America offers a variety of deductibles. Because you are "self insuring" and paying, "out of pocket," all amounts below your deductible, you can save substantial dollars in your insurance premiums by selecting higher deductibles. If your boat is financed or leased, the loan or leasing organization usually limits the deductibles they will accept (see your contract for details).
If you have a late model watercraft or your watercraft is financed, you will likely need physical damage coverage to repair or replace your boat in the event of loss. You can save premium dollars by purchasing a higher deductible on your policy, but remember, if your boat gets stolen or damaged, you will pay the amount of the deductible you choose, so be careful not to choose deductibles so high that you will wind up in a "financial pinch," even though you have insurance.
Under the physical damage exclusions of most watercraft policies, only a standard basic factory equipped watercraft is covered, excluding special equipment. Special equipment includes but is not limited to depth finders, ship to shore radios, stereos and sound equipment, personal belongings, fishing or ski equipment, life preservers and safety equipment, alarm systems, and items not installed by the manufacturer of the watercraft and delivered with the watercraft.
Most watercraft insurers charge additional premiums for Special Equipment Coverage, so if you want these items covered in the event of loss you must do so before the loss, the best time being when you apply for insurance or when you acquire special equipment. It is your duty to declare these items to your agent and pay the proper premium in order for coverage to apply for these items. Be sure these items are listed on your application for insurance or added to your existing policy if you want them covered.
Most insurers will require physical inspection of your watercraft prior to binding coverage. That inspection protects the interest of honest people and speeds up the claims process in the event of loss soon after purchasing insurance.
Watercraft should be stored inside a locked facility when not in use. Watercraft and equipment are targets for thieves and vandals, so, please take all precautions to protect your watercraft.
MEDICAL PAYMENTS COVERAGE
This coverages covers you and your passengers for medical expenses incurred in a watercraft accident, regardless of who is at fault. Although medical costs are high, because watercraft accidents are not frequent, this coverage is quite inexpensive and should be considered, particularly if you carry guests on your watercraft.
Even though Medical Payments coverage is quite inexpensive for watercraft, If you have good health insurance coverage for your family, you may not need watercraft Medical Payments coverage. However, if you carry passengers on your watercraft, we recommend that you purchase this coverage. You don’t know what type of medical insurance, if any, a guest passenger may have.
INSURANCE POLICY EXCLUSIONS
Insurance policies don’t cover all situations. There is no such thing as "full coverage." Policy exclusions exist in all insurance policies and eliminate or restrict coverage. Read your policy carefully and if you have any questions, check with your agent. Because insurance policies vary between insurers, your agent will be most familiar with your policy.
A WORD OF CAUTION ABOUT OPERATING WATERCRAFT
Watercraft can provide great family recreation but only if you take every precaution in proper training, proper equipment, and defensive operation of watercraft. Inland lakes and coastal shorelines are getting crowded with watercraft, jet skis, and water skiers.
Operating your watercraft at night poses special hazards, particularly in lakes where water levels change drastically, exposing you to sand bars and reefs a few inches below the surface. Several safety training courses are offered by the U.S. Coast Guard and boating associations. Fun can easily turn into disaster without proper training, so Auto Insurance America recommends these courses.
