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August 15, 2020

Cost Obligations Within Boat Insurance

Boat insurance will lessen the costs that boaters must pay as a result of shipwrecks or other hazards. But, even though coverage can decrease your burden, that does not mean boat ownership (and its hazards) cost nothing. There are many costs that boaters will have to pay even within their boat insurance itself. What are some of these costs? How can you manage to keep them affordable?


You will pay your boat insurer a regular cost, your premium, for them to provide you coverage. However, if you ever stop paying, then your policy will terminate. You might even face increased premiums when you try to reapply for coverage.

To keep your premium affordable, ask your agent to compare policies. Even if two insurers offer the same policies, their prices might still differ. A variety of discounts and other savings might also help you further cut the premium. In the end, you can choose the policy offers you the best cost for your optimal benefits.


Certain portions of your boat insurance might contain deductibles. A deductible is a part of a claim that the policyholder agrees to pay before their insurer covers the rest.

So, for example, suppose that you have physical damage insurance on the boat. That coverage contains a $500 deductible. If you hit another boat, your collision insurance will help you pay for the damage to your vessel.

However, before paying you, the insurer will subtract the $500 deductible from your repair quote. If you have $2,000 worth of boat damage, then your insurer will only pay $1,500 towards your repairs. You pay the remaining $500 of the cost because that is your deductible amount. If the damage costs less than $500, then your policy won’t pay at all (the damage cost minus the deductible will equal $0).

Always choose a deductible you can afford to pay. By increasing your deductible, you might be able to save on your premium costs. However, you will also take on more of a cost burden for yourself. A $1,000 deductible might lower your premium, but you might be better able to afford a $500 deductible in case of a claim.

Uninsured Costs

Keep in mind, there are certain costs that your boat insurance will not pay. Certain types of damage from certain hazards might have no coverage at all. Additionally, policies will contain limits to how much the will pay. If a damage claim ever exceeds that limit, then you will still face out of pocket costs.

If your policy doesn’t address certain costs, then you must be able to pay them yourself. However, if you worry about doing so, then talk to your insurer. You might be able to buy expanded coverage. Your premium might increase a bit, but you still might gain a greater benefit from your boat insurance.


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