All boat owners should have boat insurance, even if it is not required in your state. As you look at your policy options, you may be confused by industry terms or the many options for policy types. See a few of the most frequent questions people ask their agents to find the right policy for you.

Boat Insurance FAQ

What Are the 2 Types of Insurance?

The two basic types are “agreed value” and “actual cash value.” The agreed value policy covers the boat based on its agreed-upon value at the time when the policy is written. This type costs more upfront, but will not account for depreciation so can be preferable in the long-term. The actual cash value policy factors in depreciation, so the value is determined at the time of your claim. This will cost less upfront but cover less as time goes on.

What Influences Cost?

Your insurance agent will look at some key factors to determine the price of your policy. This could include where you boat, whether you have been formally trained or certified in boating safety, and if you have a good driving and boating record. Your liability limits and the amount of your deductible also influence your premium, as they do on any other policy.

What Are the Types of Additional Coverage?

There are some common coverages that you can add onto your policy. This might include medical payments, uninsured boaters, liability, towing, and assistance. Consequential damage covers losses from general wear and tear such as mold or corrosion. Specialized coverage can be added to cover something specific, such as your expensive sound system or motor prop.

Is My Boat Covered Anywhere?

Most policies are limited to the inland waters and coastal waters of the U.S. and Canada. Boats larger than 26 feet may have more specific regional limitations. If you are traveling outside the U.S., you can get a temporary cruising extension. If your boat is attached to your car or truck, it will be covered by your auto policy. If it’s parked on your property, it may have some coverage under your homeowner’s insurance policy.

An agent can help you find the right policy for your coverage needs and budget. Absolute Insurance Agency is the trusted boat insurance provider for boaters in the Foley, AL, area. This locally owned and operated agency offers low-cost rates, industry experience, and flexible policies. Request a quote online or at (251) 942-6837.