Boats have to go through many unique circumstances and risks that many other
insured items do not. All boats, however, do not share these risks so there
is a wide variety in policies. When buying car insurance there is usually not
optional war coverage in case you drive your car into the middle of a battle,
but there is such an option for boat insurance. Rather than buying a fairly
standard insurance policy as done with automobiles, motorcycles, and homes,
boat insurance requires you to consider a huge range of risks and policies
including many that will never apply to you and your boat. The key to getting
a cheap fishing boat insurance policy that still covers all of your needs is
paying for the coverage that you will need and not paying for the coverage
that does not apply to your situation.
In many states, it is illegal to operate a boat without insurance, just as
with auto insurance, so getting insurance for your boat is a must even if the
boat was inexpensive and you can easily replace it. Boat insurance also covers
the personal property on the boat, which can mean your expensive fishing reel
is covered. Most insurance companies offer a standard watercraft policy for
liability along with additional coverage for additional rates.
Another version of boat insurance is pleasure
craft insurance or yacht insurance. These policies base the value of the
boat on an agree-upon value. Boat insurance bases the value of the boat on
its depreciated value. Unless your boat is a collectors’ item, standard
boat insurance will have lower rates. However, when you make a claim it will
be the insurance company that determines the value of the boat.
In general the larger national companies will offer the lowest rates. However,
when it comes to cheap fishing boat coverage you may find it is better to go
with a small insurance company that specializes in boat insurance since they
will tend to have more options. A national insurance company may offer a policy
with war risk coverage, worldwide coverage, and high property value limits.
If you do not need these things then a smaller company with a more specific
policy may save you a lot of money. You have to consider where you will be
fishing, how often you will do it, and what you will bring aboard. There is
no reason to pay for full worldwide coverage if you do not need it.
When speaking with your agent or broker you should be sure to explain what
you will be doing with the boat, and what you will not be doing with the boat.
If you simply explain what you think you will use the boat for, they may add
certain forms of coverage to the policy just in case. If you are up front about
your desire for a cheap policy that only covers your needs the agent will usually
be happy to help you to make sure you do not use one of their competitors.
This is why it is important to shop around or use a broker.