How to Choose Best Boat Insurance

Your vessel deserves its own insurance policy, not a shared one with your home. There are many elements specific to boat coverage that only exlusive boat insurance can offer. There are many choices of coverage for boat owners. Here is a guide on how to choose the best boat insurance.

Shopping for Boat Insurance

The first step is to understand what the market has to offer and the basic of boat insurance (discussed below). Then you need to research about the different companies under consideration to gather sufficient facts. You can check with business bureaus, regulatory agencies and existing customers. Get quotes from different providers, compare the essential factors and finally select the one best policy.


When you apply for boat insurance, the insurers consider different factors in approving a policy for you. Most boats can be covered, provided you are willing to pay the price. Only thing you need to be careful is picking a policy that meets all your needs; that would be your best policy. The following details are considered in processing boat insurance policy.

  • Boat’s age
  • Type
  • Value
  • Ownership
  • Length
  • Speed
  • Condition (meeting the standards of the US Coast Guard)
  • Will it serve the purpose of a primary residence?
  • Is it homemade?

In addition to this, the owner’s driving record, cruising area, owner’s education or certification in boat safety, deductible and liability limits are considered in determining the cost of coverage.


Boat insurance coverage is mainly of two types: actual value and agreed value. This classification is based on how depreciation is treated. With agreed value, you agree to the value of the boat at the time of policy initiation. The policy does not count the depreciation when the boat is totally lost. With actual value, at the time of loss, the value of the boat discounting for depreciation is paid. The best option is up to your preference of how much you are willing to pay or hoping to be reimbursed for.


When choosing a policy, you have to ensure that it covers all the permanent attachments, oars, anchors, tools, life jackets, seat cushions and trolling motors, personal effects, medical payments, towing and uninsured boaters. The best policy would cover most of these in the basic package and allow add-ons at a good rate.


Before choosing a provider, you need to research well to know about the claims process and the track record of the company with its claims payments. Past handling of claims is a good indicator of the service of the company. The company must process the claim quickly and easily. Also, check if they would help with arranging towing assistance or salvage, in addition to processing the claim.

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