There is an old joke that compares the experience of owning a boat to throwing your money into a hole in the water. Unfortunately, the joke isn’t too far from the truth. Although it might seem like the cost of owning a boat stops at the purchase price, the reality is that costs continue long after the initial purchase.
Most boat owners paid at least $18,000 for a preowned vessel. According to studies, many boat owners spend almost 10 percent of the boat’s value of annual maintenance expenses, which doesn’t include unexpected costs. Only 5 percent of the world’s richest individuals own a boat.
The maintenance costs of a super yacht can run into the millions. Fortunately, the average boat owner won’t need to pay anywhere near as much money.
A major cost of owning a boat is the insurance, so if you’re not prepared to pay for insurance, you shouldn’t consider buying a boat. If you are looking to purchase a vessel, there are three important facts that you should know about the cost of boat insurance.
Boats Aren’t Covered Everywhere
Many new boat owners are surprised to learn that their boat isn’t covered everywhere. Most people assume that boat insurance covers the vessel everywhere it travels, but unfortunately, this assumption is incorrect.
However, most types of boat insurance are quite broad, so they’ll cover your boat for many locations. A number of insurance policies use something called a navigational warranty, which covers most inland waters of the United States. This type of policy also covers coastal waters and parts of Canada.
Most boat insurance policies don’t cover vessels once they’ve entered international waters. Another incorrect assumption is that boat insurance covers your boat while it’s out of the water. The truth is that your automobile policy takes over and covers your boat when it’s attached to your vehicle.
Avoid Policy Claims
Boat insurance is very helpful if your vessel is ever involved in an accident. All boat owners would rather not get involved in an accident, but there will always be unlucky boat owners who have to file an insurance claim.
There are several ways to avoid having to file a claim. Before driving a boat, it’s important to understand all of the basic safety protocols. You should have a basic understanding of the boating laws for your state and make sure you’re able to follow them.
You Can Save Money on Boat Insurance
It’s a proven fact that it’s possible to save money on boat insurance, but most people don’t know where to start. Although it’s common sense, shopping around and seeing what different companies have to offer is a great way to save money.
The installation of safety features is a great way to cut the cost of your policy. Insurance companies give discounts to boat owners who install safety measures because safety features protect the investment. These are three important facts to know about the insurance cost of owning a boat.