Top Mistakes to Avoid When Buying Boat Insurance 

Purchasing a new or used watercraft promises fun days on the water. However, boat insurance mistakes can turn a great day into a costly one. Many people may not think much about buying this type of policy until they need it. However, this type of coverage is an affordable, wise investment. 

Even if you decide to purchase coverage, you want to be sure you avoid common boat insurance errors. 

Top Mistakes People Make When Buying Boat Insurance 

Whenever you get coverage, there is a possibility that you will miss something or make a mistake. The following represent the most common errors that boaters make. 

Not Understanding What’s Covered (and What’s Not) 

You may assume that your policy will cover any type of damage sustained in a boating incident. However, just as any car or home insurance policy has its limitations, so does this type of coverage. In most cases, you can expect the following to be covered: 

• Damage to your boat– Just like an auto policy, you will have coverage for damage that occurs to your craft due to an accident or collision with another vessel or object. 

• Salvage costs – In case your boat sinks or gets stranded, you can include a part in your policy to cover the recovery costs. 

• Personal belongings – Be aware that coverage for your personal items, such as clothing and fishing gear, may have limited coverage. However, if you keep high-value items on your watercraft, such as electronics, you may need additional coverage. 

• Medical payments – You can expect some minor medical expenses to be covered for you and your passengers. But keep in mind that there will be limitations. Your health insurance is a necessary backup. 

Some of the things that may not be automatically covered in your policy include the following: 

• Maintenance issues – If you experience mechanical issues, you may have to pay the cost yourself. If these problems are due to normal wear and tear or neglect, your policy typically will not cover them. Make sure to keep up with spring maintenance on your vessel to avoid problems. 

• Named perils only – Check with your agent to determine what the named perils are. Perils are a list of certain situations that will be covered under the policy. Some of these may include fire and theft. 

• Territorial limits – Some policies will not cover damage if it’s outside of a designated area. 

Underestimating the Value of Your Boat 

Your summer toys may be worth more than you think, and you don’t want to undervalue any of them, including your boat. You don’t want to experience the total loss of your watercraft and find out later that you did not provide an accurate value. When you underestimate how much your boat is worth, you are technically underinsured. Meaning if you total your watercraft, you will not get the proper reimbursement. 

Some people think the purchase price of their boat is an accurate value for insurance purposes. However, you need to take into consideration additional equipment you may have installed, other upgrades, or a rise in overall boat-related costs. 

Ignoring Liability Coverage 

Liability coverage is a crucial component of your policy. This kicks in if someone is accidentally injured while interacting with your boat or you damage another vessel. If you don’t have liability, you could be out a significant amount of money due to a costly lawsuit. 

Why Choosing the Cheapest Boat Insurance Isn’t Always the Best Option 

Everyone desires affordable boat insurance, but purchasing the cheapest plan isn’t always the best option. In fact, it could cost you more in the end if you do so. Getting the lowest-priced policy will mean that your coverage amounts are limited, and you will have a high deductible. Additionally, cheaper policies may exclude vital protections. For example, if you don’t have towing, liability, or salvage protection, you may be out of pocket more than it would be to purchase a better policy. 

How to Choose the Right Boat Insurance for Your Needs 

You may wonder how to choose boat insurance so that you’ll get the best policy for your needs. You can begin by determining how and where you use your craft. Also, be sure that you have an accurate value for your vessel. You can also check out these boat insurance FAQs. 

Look for a policy that covers you in all situations. If you need additional coverage or higher limits for things such as liability, medical, or personal equipment/belongings, be sure to discuss this with your agent. 

Finally, shop around for the best policy for the price. Compare carriers to be sure you’re getting the most for your money. 

How Acceptance Insurance Can Help You Avoid Boat Insurance Mistakes 

If you have a boat or are considering purchasing one, make sure you have financial protection in case of damage. At Acceptance, we will provide you with a free, no-obligation quote that keeps you covered. 

Acceptance Insurance agents will make sure all aspects of your policy cover you when needed. We are here to give you all the boat insurance tips you need and a budget-friendly rate. Reach out to our experienced policy advisors to receive your free quote today. Find an affordable plan that works with your vessel and budget. Contact us by phone at (877) 405-7102, visit one of our many locations, or get a quote online.