For many people, owning a boat is a lifelong dream. If you are one of these individuals who has finally realized this dream, protecting this investment is important for your emotional and financial well-being. While an essential way to protect your vehicles, home, and health, insurance can also be beneficial for your boat. Of course, insuring your boat is an expense, so knowing if you truly need it is smart. Here are a few signs you should invest in an insurance policy for your boat.
You Want to Protect your Finances
The purchase of a boat is a large investment whether you are paying cash or financing it. If your boat is damaged in an accident or stolen, you will lose a great deal of money in repairs or replacement costs. Fortunately, most policies will cover these issues, reducing the amount of money you need to pay out of your own pocket.
It is also important to note that insurance can protect you and your passengers if you are involved in an accident. Policies can cover the cost of medical care related to injuries and legal fees if lawyers and courts become involved because of the accident.
You Live in Arkansas or Utah or You are Financing It
Auto and homeowner's insurance is required by law in the United States. While surprising to learn, boat insurance is not required by law, unless you live in Arkansas or Utah.
In Arkansas and Utah, there are minimum coverage limits to include in the insurance policy. For instance, Arkansas laws state your insurance must include $50,000 of liability coverage.
Another surprising fact you should know is that there are many stipulations when financing a boat. Most lenders require you to use the boat as collateral for the loan. In these cases, the lender may require you to have an insurance policy on the boat. This not only protects you in case the boat is totaled or stolen, but it also protects the finance company.
Your Other Providers Bundle
If it is not required, you may still be wondering if an insurance policy on your boat is really necessary. Thankfully, you may be able to save a great deal of money on the policy if you have other types of insurance with your provider.
Ask your auto and homeowner's insurance companies if they offer discounts for bundling services. If you are able to purchase the policy on your boat at an affordable price, it will be a truly worthwhile investment.
Contact a boat insurance company to get an estimate.