How Insuring A Boat Is Not Like Insuring A Car

1 March 2016 by Elijah Steward

If you are considering buying a new boat,, or you have just bought one, the next step is to protect your boat with a healthy amount of insurance. You may think you will need a lot of insurance, since a boat is a "water car," right? Well, no, you actually different types of coverage on a boat than you do with a car. Here is how insuring a boat is nothing like insuring a car.

Collision Insurance on a Boat? Not So Much

Most cars and trucks on land are insured against collisions. While collisions can occur in the water and on a boat, they are less likely to involve other boats and more likely to involve stationary objects in the water. Other boats you can typically see coming in a waterway and easily steer clear of, but objects like a buoy or a pylon may not be so obvious. This is especially true if the water in a river or lake is high or the objects appear to be the same color as the water and/or sky. Ergo, your collision insurance for a boat does not necessarily need to be as much as it would be on land and in a car, but you might want to increase your liability insurance to protect against objects you might hit when driving the speeding boat.

Flood Damage Coverage? Maybe and Maybe Not

Insuring a car or truck against floods makes sense, especially when you live in an area that gets frequent floods. Most land vehicles are practically a total loss when the engines and the interiors are flooded. Boats, on the other hand, are already in the water. They are not necessarily flooded as much as they take on excess water and the water needs to be pumped out.

Some damage may occur in the cabin of your boat if your boat has a cabin. The chances of this are slim, since you would notice your boat taking on water and try to get it onto dry land as soon as possible. High waters are no problem for a boat either, since, of course, boats are made for water. Therefore, you could carry a small amount of flood insurance on a larger boat that has a cabin, but if your boat is absolutely brand-new and you dry dock it for a big part of the year, flood insurance is not so necessary.

Protection Against Hurricanes and Storms at Sea

If you live in states and along coastlines where hurricanes are common, this addendum to your boat insurance is highly recommended. The high waves that accompany hurricanes, and even storms at sea tend to lift boats up and out of the water, sometimes throwing them with devastating results onto land. Storms at sea make it impossible to steer and keep the boat upright. This differs from cars and trucks, which will never encounter storms at sea and often are covered under standard auto policies for any damages from hurricanes.

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