If you're purchasing a boat, or have done so recently, you are investing in a luxury product that should be given protection against any damages, should they occur. Just as a car should not be driven without insurance, in the majority of cases, neither should a motorboat.
Some people are under the impression that their home insurance policy will also cover protection for their boat; however, in the majority of instances, this is not the case. Unless the boat is very small and not powered by an engine, for example a dinghy, then it's almost certain you'd need an individual boat insurance policy.
Comprehensive boat insurance will cover damage to the boat, much like automobile would for your car. However, it's also essential for covering any injury that could potentially be caused to other parties, as well as injury to third party watercraft or docks. It goes without saying that due to the expense of a boat, it would be unwise to leave it unprotected against damages.
The cost of the policy taken out can vary depending upon a number of factors, which can include the size of the motor fitted to the boat and the means by which it is powered.
Pricing structures can also vary depending upon the level of cover chosen, which can range from 'market value' or 'agreed value' remuneration, to full replacement coverage. Cost can further vary depending upon the scenarios that the boat is protected against, for example theft, fire or vandalism.
Money can be saved by paying attention to small details. If the boat has safety equipment, for example a kill switch for the engine, or the boater has passed a training course, then these details can reduce your premiums. It is worth investigating through your chosen insurer.
Finally, the value of personal belongings and equipment stored aboard can affect premiums, too. Expect insurers to want receipt evidence for more expensive equipment when obtaining quotes or policies.
Motorboats can attract slightly higher premiums than other, non-motor powered craft, so one way in which this type of insurance differs is that it is more costly. This is in part due to the fact that this type of boat is typically associated with faster and more risky activities.
The fact is that the boat is carrying a powerful engine, which is subject to wear and tear from continuous use over a long period of time. What's more, the boat must carry fuel to power the engine, meaning that the boat, when compared to a non-engine powered craft, is a potential fire hazard in the event of a fuel tank breach.