Boat Insurance Basics

If you've purchased a fishing boat, jet boat, sailboat or other type of watercraft recently, you'll need to purchase boat insurance to protect the watercraft and passengers. Boat insurance policies are typically offered by the same insurance provider that offers auto insurance, home insurance and motorcycle insurance. You may be able to get a discount on your boat insurance policy if you work with the same provider, and can choose from a number of different coverage options. Here's a brief overview of the basics of boat insurance:

Types of Watercraft Covered by Boat Insurance

Your insurance provider may cover all or some of the following types of watercraft under a boat insurance policy:

• Sailboats
• Pontoon boats
• House boats
• Cabin cruisers
• Fishing boats
• Bass boats
• Mini jet boats
• Personal watercraft
• Runabouts

Types of Boat Insurance Coverage

Every insurance company offers different types and levels of boat insurance coverage. The basic insurance policy works in a similar way as auto insurance -- you can purchase liability and comprehensive insurance to ensure that all legal and medical costs are covered in the event of an accident, and also get boat insurance to cover the costs of any physical damage to the vehicle. Boat insurance typically covers damage to the boat on the water and on the road, and you'll have the option to add "extras" such as rental reimbursement, on-water towing and roadside assistance.

Some of the most common types of boat insurance coverage include:

• Bodily Injury
• Property Damage Liability
• Uninsured Boater
• Medical Payments
• Comprehensive Coverage
• Collision Coverage
• Personal Effects Replacement
• On-Water Towing
• Roadside Assistance
• Fishing Equipment
• Fuel Spill Liability Coverage
• Wreckage Removal
• Water Sports
• Pet Injury Coverage

Bodily injury and property damage liability are the most basic forms of insurance coverage for your vehicle and will protect you against legal costs associated with an accident in the event that someone on your boat is injured, or your boat causes damage to someone else's property. You can select various limits based on your needs. Comprehensive and collision boat insurance will pay for damage to your boat if you're involved in an accident or incur some type of loss that is covered under your insurance policy, regardless of who is at fault for the incident. If you have this type of boat insurance coverage, you may also have the option to choose how to resolve your insurance claim if the boat is declared a total loss.

Outside of these coverage options, you can add on insurance coverage such as water towing, wreckage removal, and fuel spill liability to further protect your boat. Talk to your insurance agent about all of your options, and to decide what level of protection you need based on where you are storing the boat, where you plan to use the boat, and the current cash value of your boat.

Sources:

Progressive -- Boat Insurance

Nationwide -- Boat Insurance Quotes and Coverage

Allstate -- Boat Insurance