When you own a boat, you are responsible for maintaining it in good condition and keeping it insured. You won’t have to worry about paying thousands of dollars to repair or replace it if anything happens to it. However, marine insurance can be challenging to figure out if you live on the water.
This is because every insurer has its rules regarding what it will and won’t cover and how much coverage costs. Fortunately, there are some things you can do when keeping marine insurance low.
Despite the low cost, you’ll still have enough coverage to protect your investment in your boat and its accessories. Keep reading to the end to get these exciting hints.
Shop around
While most people think that insurance is just for disaster protection, you can use it to reduce your monthly expenses. You may want an umbrella policy for non-cancelable home or auto coverage in some cases.
If you have home-equity lines of credit (HELOCs), flood insurance may be necessary. These policies can help minimize your spending while providing peace of mind—and they might even help save you money. Just make sure you know what’s covered before purchasing a policy.
Shop around and compare plans so you know what you’re getting into. It will pay off in both cost savings and convenience down the road.
Of course, one size doesn’t fit all regarding insurance policies. Depending on where you live and your specific needs, several options are available that could prove beneficial. For example, if you own a boat or RV, recreational vehicle (RV) or boat insurance may be necessary.
Likewise, if you have expensive jewelry or other valuables, a personal property floater might be right. You can get by with just a basic homeowners policy at other times.
The best way to find out what coverage is best for you is to talk with an independent agent. They can help tailor an insurance package based on your unique situation.
Use the correct type of policy
Most boat owners have liability and hull coverage, which are provided under one insurance policy. However, there is a third type of coverage called contents insurance. A marine contents policy will protect your belongings, but not you or your crew in case of an accident.
You can protect yourself with a marine umbrella policy or onshore homeowner’s policy. Talk to your agent about adding these options for extra protection for your family and home when you’re away. If you plan to dive while at sea, it’s also a good idea to purchase scuba-diving insurance separately.
Most standard policies don’t cover accidents during recreational activities like swimming, snorkeling, or scuba diving. However, if you already have a homeowners policy, it may include some limited coverage for these activities.
Make sure to read your policy carefully to know exactly what’s covered and what isn’t. Finally, make sure you aren’t overpaying for your current coverage.
Talk to your agent about how much you’re paying for each type of coverage (liability, hull, and contents) and compare. Sometimes just changing companies can save you hundreds of dollars per year.
Don’t forget your tools
You wouldn’t buy a power saw without blades, and you shouldn’t insure your boat without tools. Ensure you have detailed coverage for anchors, fenders, and lifesaving equipment. While it might seem like an unnecessary expense at first, someone may damage or steal them.
Without coverage, they’re costly to replace on your own—or you may need to forego them altogether. The more thorough your insurance policy is, the less likely you will find yourself stuck with out-of-pocket expenses. It’s better to pay for extra coverage now than pay far more later.
Tackle maintenance issues early
Your marine insurance cost will increase when you don’t take care of routine maintenance. Neglecting a few things here and there isn’t going to destroy your boat—at least not overnight.
However, each little issue adds up, resulting in more prominent and more expensive problems down the road. So instead of letting minor issues snowball into larger ones, tackle them early. It could save you money in the long run.
An ounce of prevention is worth a pound of cure when keeping your boating costs low. Try to maintain that new boat looks as long as possible. If you don’t know where to start, talk with your dealer about how best to care for your specific model.
They can also tell you what common issues may pop and how to prevent them from becoming significant problems. If they can’t help, there are plenty of other online and elsewhere resources. Take advantage of them!
Even once you’ve started using your boat regularly, keep it in tip-top shape. The more time passes between maintenance tasks, the more money you’ll spend on repairs down the road. So if you want to save money on marine insurance, take good care of your boat.
You should also get an annual checkup from a marine surveyor. He can examine your vessel and identify any potential problem areas.
Buy high-quality gear
The right gear can save you money in the long run by keeping your valuables safe. Also, high-quality materials are designed to last longer than low-quality ones. This means that if you ever have a claim, it’s less likely you’ll have to replace them.
Higher-quality gear usually comes with a higher price tag. Don’t be discouraged about it—the difference in quality is worth it in terms of potential savings. Plus, since high-quality marine equipment often lasts longer, there’s a good chance you won’t need to claim at all!
It may cost a little initially, but quality marine equipment will help keep premiums low and prevent claims.
Conclusion
Marine insurance is one of the most unusual types of insurance, and many people don’t even know about it. However, it’s a top topic of discussion among sailors, captains, and those who order goods through the sea.
The value of marine insurance for these people cannot be overemphasized, as casualties on the sea can be seriously devastating. You should get marine insurance once you realize you need it, and with the tips above, you can save more.
