The rules of the water may be less strict than the road, but that doesn’t mean you should go without protection. Learn how boat insurance keeps you and your watercraft safe.
You never know when a boating accident might happen. According to the U.S. Coast Guard, there were 5,265 recreational boating accidents in 2020 that caused over $60 million in property damage. Before you take your new watercraft out for its first voyage, protect yourself against financial damage with a yacht or boat insurance policy from Southpoint.
Boat and yacht insurance are similar to car insurance policies; they provide protection for your vehicle, other boaters’ vehicles, and your finances in the event of a lawsuit. Though most states don’t require boat insurance for personal watercraft, some require coverage for large vessels. Regardless of whether your state requires personal watercraft coverage, you should purchase a policy to protect yourself against financial risk.
Boat insurance policies cover smaller vessels under 26 feet in length, and they offer more basic coverages than yacht insurance policies. Because yachts are large, valuable vessels that tend to travel further than boats, yacht coverage typically contains higher limits and more specialized coverages.
Personal Boat Insurance Coverages
Like a personal auto insurance policy, boat insurance contains various coverage options, including property damage, bodily injury, medical payments, uninsured watercraft, towing and labor, and personal repair costs. Property damage and bodily injury, or liability coverage, pays for lawsuit costs if you injure another boater or damage their property and get sued as a result. The rest cover your costs if you or a passenger gets injured, your boat sustains damage, or you get into an accident with an uninsured driver.
Yacht Insurance Coverages
Insurance policies for vessels 27 feet and longer usually contain two essential coverages: hull insurance and protection and indemnity (P&I) insurance. Your hull coverage limit specifies the amount you would receive if your insurance carrier deemed your yacht a total loss. P&I coverage builds on the liability coverage included in a boat insurance policy by adding coverage provisions that meet strict maritime laws. If you get sued after a crew member suffers an injury or you cause harm to another vessel or driver, your P&I coverage will pay for lawsuit costs up to a specified limit.
One serious boating accident could cost you hundreds of thousands of dollars and put your financial future in peril. Don’t put off getting marine insurance until after the damage has been done. Partner with Southpoint today and get affordable quotes from the biggest names in insurance.
If you’re considering buying an insurance policy for your boat or yacht, you’re probably wondering: How much will my coverage cost? The answer depends on a number of factors, including:
- Your watercraft: You wouldn’t pay the same amount to insure a luxury SUV and a 10-year-old sedan, and the same logic applies to boats. The size, make, model, and age of your vessel help determine your boat insurance rates.
- Coverage limits: The higher your liability and property limits are, the more expensive your policy will be. Additionally, if you add extra coverages to your policy, such as towing expenses, personal property coverage, and storm insurance, your premium will increase.
- Deductible amounts: Before your insurance company will pay for a claim, you have to cover a deductible amount. Policies with low deductibles cost more than those with high deductibles.
- Location: If you live in a coastal state, your insurance will likely be more expensive because you use your boat year-round. In inland states with cold winters, most boat owners only use their watercraft for a few months out of the year.
- Your boating history: A bad driving record doesn’t just impact your auto policy rates. Drivers who have been in multiple boating accidents pay higher premiums than drivers with a clean record.
- Previous claims: Insurance companies are risk-averse. If you have a history of expensive claim payouts, your insurer will raise your premium to offset their financial burden.
It can be challenging to quantify your risk and determine the coverages that fit your needs and budget. If you need an expert’s help finding a boat insurance policy that covers all your risks without breaking the bank, look no further than Southpoint. After a short conversation about your boat, your concerns, and your budget, our team can assess your risk factors and provide a detailed coverage recommendation. From there, we reach out to our carrier partner contacts and gather multiple quotes that fall at or below your target budget.
Securing boat insurance coverage can be a daunting task. Purchasing the cheapest coverage with the lowest limits may seem like the right choice now, but it can leave you scrambling for money in the future after an unexpected accident. On the other hand, buying every extra coverage and picking the highest limits is overkill for most boat owners.
There is no one-size-fits-all policy for boat owners—everyone has different needs and cost concerns. However, your perfect policy is out there, and Southpoint can help you find it. We use our decades of industry experience to gauge your risk and offer informed advice about your policy. Additionally, our team members handle the complicated logistics of finding and purchasing the right policy on your behalf. We make sure you’re covered, and all you have to worry about is planning your next boat trip.
If you want to enjoy your new boat or yacht for years to come, insurance is a must-have. Before you sail the open seas in your yacht or hit the road with your new speed boat in tow, get in touch with Southpoint. We can secure personal insurance coverage in no time and keep you and your loved ones safe on the water.