While Alabama does not legally require boat insurance, you should still have coverage in case of an emergency. For example, if you run aground on a sandbar, collide with another vessel, or otherwise cause an injury, this policy will protect you from financial hardship. If you own a boat, below are some of the most significant benefits of carrying insurance for it.

Why You Should Invest in Boat Insurance

1. Get Protection From Lawsuits

Even the most experienced captains can make minor mistakes, potentially damaging someone else’s boat. However, boat insurance policies include liability coverage, which pays the costs of hospital bills and damage related to an accident for which you are liable. Even if the other party files a lawsuit against you, the policy will pay the settlement requirement, keeping your savings and other assets out of reach of the court.

2. Prepare for the Unexpected

A calm lake surface can conceal sunken trees, sand bars, and wreckage that can severely damage  the hull of your boat. Repairs from even low-speed collisions can cost thousands of dollars, which you may not have available. However, boat insurance policies feature hull insurance, which covers the cost of repairs while protecting you from financial hardship.

3. Receive Coverage for Towing

If your boat is disabled or sinks beneath the surface, retrieving it can cost a significant amount of money. While not every policy covers towing and salvage costs, you can add a rider to your coverage for an additional fee that protects you from these circumstances. This way, if you cannot retrieve your boat from the water, you can get professional help without breaking the bank.

4. Meet Lender Requirements

While state governments may not mandate boat insurance, lenders normally require you to carry coverage that will protect their investment. If you financed your vessel, you may have to show proof that the boat has collision and hull coverage. This ensures that your lender receives payment on the boat, reducing their financial risk.

Since 1986, boaters throughout the Birmingham, AL, area have been relying on AiA American Insurance Agency to protect their most valuable assets. These independent agents work with some of the leading carriers in the industry, and will find a policy that suits your unique needs. Visit the website for more information about their services. Call (205) 940-9977 to request a free boat insurance quote.