Whether you are in the process of buying a brand new boat or are a second-hand one, insurance should be on the top of your mind. Many people assume that boat insurance will be a lot like auto insurance, which is in some cases, but there are significant differences. Regardless, boat insurance is the best way to safeguard your safety and that of your boat when you’re out in the waters.
Below we’ve compiled a list of the most frequently asked questions and answers about boat insurance. This should be the first place you come to before trying to find the right boat insurance for your newfound love.
Does the State of Texas Mandate Boat Insurance?
Texas does not mandate that people having a boat should also have insurance. However, if a federally registered lender has financed your boat, you will need boat insurance because the lender mandates it. If you are buying the boat outright, with money out of your pocket, insurance isn’t mandatory.
What Types of Boat Insurance Coverages Are Available?
While Texas may not mandate boat insurance, there are still quite a few types available. It would be worth familiarizing yourself with them before choosing one.
Liability coverage – Usually, this will cover you in the event of an unfortunate accident that does damage your boat and any valuables. It will also cover bodily injury and damage to your property. Liability coverage is expensive, arguably the most expensive type, but worth every cent.
Uninsured watercraft coverage – This policy covers you if your boat was hit by an uninsured boat. The policy will cover the cost of repairs to your boat.
Physical damage coverages – The policy will cover the cost of physical damage to your boat, including replacing broken parts. It will also cover boat replacement under a covered peril. For instance, if the boat is destroyed in a fire, you will be paid for the damages up to the stipulated coverage limit.
Medical payment coverage – The policy mainly covers any medical expenses for you and the passengers in the event of a boating accident.
What Factors Will Impact My Boat Insurance Rates?
Boat insurance coverage premiums can differ based on several variables. Below are a couple of factors that may affect your insurance rates:
The boat’s value – Generally, the more expensive your boat is, the higher the premium.
Type of boat – Do you have a cabin cruiser, ski boat, deep water fishing boat, or a pontoon boat? Each one has a slightly different insurance rate.
Speed – Usually, high-performance boats with a lot of horsepower (HP) are at a higher risk of damage, so they are more expensive to insure.
The cruising location – Going through various cruising areas has different risks associated with them. This will directly impact your insurance rates.
Boating history – If you get into a boating accident, it will automatically mean you pay more in the way of premiums the next time. So, a safe and uneventful boating history translates to lower premiums.
Call us today if you have a boat.