Guide to Help Figure out Your Boat Insurance Deductibles and Premiums
Boats are unique assets. Thousands of people operate their boats during warm seasons to get away and spend time with their loved ones. However, there are multiple risks to consider while you are out on the water. Boat insurance protects you from such risks. Figuring out the type of coverage you need may be complicated at times.
Boat insurance policies are designed to protect you in emergency situations because operating a boat is considered a high-risk endeavor, as something could go wrong at any moment. While researching boat insurance, it’s recommended that you learn about your potential deductible, premium, and policy limits. Learning about these terms can help you find the right boat insurance policy that aligns with your needs.
- Boat Insurance Deductible
Your boat insurance deductible is an important part of your policy. Your deductible is the amount you are obligated to pay out of pocket for a covered loss before your policy covers the remaining amount. Your deductible will generally be a flat amount, though you’ll have the option to adjust it to a percentage of the insured value. Choosing your deductible allows you to customize your policy based on your current financial situation. If you are unable to assume a lot of risks, you can lower your deductible. However, lowering your deductible will likely cause your premium to rise. Likewise, choosing a high deductible will lower your premium. It’s recommended that you assess your financial situation before making a decision.
- Boat Insurance Premium
Insurers look at multiple factors to help determine the amount that you’ll pay for boat insurance. You’ll have to figure out if you’re interested in full coverage or minimal coverage. Each type of coverage that you add to the policy includes a policy limit. If the covered loss exceeds the policy limit, you’ll have to cover the rest out of pocket. Your boating experience is also an important factor. If you are relatively new to operating a boat, your boat insurance premium is likely to increase because the chances of you being involved in an accident are high. Insurers will look at the type of boat that you are using as well. If you are operating a high-end boat, your premium will rise. This will likely occur because repairing your boat or replacing its parts will be more costly and time-consuming for insurers.
If you have any previous claims on your record, that will likely also cause your insurance premium to rise. Your insurer will also look at where you decide to store your boat as well. If you are storing your boat in a safe place, that could help lower your premium. When using your boat, pay attention to the policy’s navigation limits. The navigation limits outline the areas you are allowed to use your boat while maintaining coverage.
Consult with Club Agency
Be aware that you may be required to purchase a specific amount of boat insurance coverage if you are financing your boat. If you have any questions about your coverage, contact the experts here at Club Agency, and we will assist you.