Accidents happen every day, on the road, in the home and at the workplace. Insurance is available for each situation to offset damages. When an accident happens on the water, in a personal boat, none of these policies is applicable. Instead, high performance boat insurance is designed exactly for the catamaran or v-hull capable of traveling as fast as 130 mph.
The Cost of Cheap
When a high-speed boating accident occurs, the damage is expensive. Likewise, coverage for such watercraft is not a bargain basement rate. Basic insurance is always available, covering the boat’s market value, personal liability and property damage. However, capsizing and collisions regularly result in million dollar repair bills. Inadequate insurance costs more than a pretty penny as a result.
Premiums are based on numerous factors including length, make, model and age of boat. The hull material is also considered, along with engine type and boat speed. Where the watercraft is stored when not in use is another factor as well as driver’s experience.
Some carriers do not insure boats in disaster prone areas or require a very high deductible specifically when catastrophe strikes. Normal deductibles are usually not more than 10% of the boat’s value, and can be as low as 1%. Owners routinely opt for high deductibles to save on premiums. In addition, some insurance carriers require a credit check prior to approval. Individuals with low credit ratings pay much higher premiums.
Policy Limitations
Not every policy will include damage to machinery, unless there is a rider. In addition, coverage is only applicable to the operator noted on the application form. This means if you are listed on a policy and a friend or relative takes your boat out for a spin, any resultant accident damage will not be paid. Be sure to list all individuals that are likely to operate your boat, so coverage is continuous.
It is always best to comparison shop before settling on a high performance boat insurance policy. Many insurance brokers without watercraft experience are not the best advisors and are likely to offer just one or no solutions. Find an agency specializing in marine insurance, one that is able to provide a quote from multiple carriers.