If you own a boat, you know how exhilarating and relaxing a weekend out on the water can be. However, you also likely understand that boats are vulnerable to damage from storms, other boaters, and even traffic accidents. Fortunately, boat insurance provides protection from a variety of losses, but the specifics of your policy can be confusing, especially for new boaters. Below are a few elements of these policies that every boat owner should understand.

3 Facts to Know About Boat Insurance

1. Auto Accidents

Whether a boat insurance policy covers specific damage or not depends on where you are and what you were doing when the accident occurred. If you have to tow the boat to the water, any damage sustained in an accident will instead fall under your auto insurance policy and only up to those limits. Your agent may recommend increasing the liability or property coverage limits or buying an umbrella policy to provide maximum coverage.

2. Agreed Price & Market Value

Insurance providers generally offer policies based on the agreed price or the fair market value of the boat. If the vessel is newer, buying a policy based on what you paid may be the better investment. However, if the boat has depreciated with age, purchasing coverage based on its current market value can help cut insurance costs.

3. Coverage Limits 

Insurers base their rates on a variety of factors, including how often and where you sail. Most policies include navigational warranties that limit coverage to a specific area. For instance, the policy may only cover accidents that occur on inland waterways, or along specific areas of the coast. Before setting out on a voyage, ask your agent to ensure you’ll be covered throughout the trip.

Shopping for boat insurance can be confusing and stressful, but the committed agents at Western States Insurance Group have the skills and experience to guide you through the options to make the right choice. They work with a wide range of leading carriers, allowing them to provide tailored coverage to boat owners throughout southeast New Mexico and west Texas. Visit their website for more on their services, follow their Twitter for updates and news, or call (575) 396-1318 to speak with an agent and request a free quote.