Of course, you wouldn\u2019t want to risk driving your car around without insurance. Because, unless you\u2019re incredibly lucky\u2026the odds are far better you\u2019ll be involved in some sort of traffic incident over the next couple of years. It doesn\u2019t have to be your fault \u2013 you might even be caught up in one while being safe and minding your own business. It\u2019s the way fate works. The same can be said about your boat. You can risk taking it out on your favorite recreational waterway and hope nothing happens to it\u2026or you can make the right choice and purchase boat insurance to protect your valuable toy.<\/p>\n
As usual, serious boating accidents occur every year. Coast Guard statistics show that, in 2011, there were 4,588 recreational boating accidents that resulted in 758 deaths. In addition, 3,081 boaters were injured and about $52 million in property damage was reported.<\/p>\n
The consensus from the Insurance Information Institute is that everyone who owns a boat should strongly consider insuring it. The reason \u2013 boating insurance<\/a> can cover the costs incurred in accidents, such as damage resulting from a collision with another boat, dock, or Jet Ski. Furthermore, it can provide uninsured boater coverage to help pay for injuries associated with an accident. And, more importantly, as with car insurance, liability coverage<\/a> can protect you from damages you cause to others; whether it\u2019s from physical injuries or property damage, it\u2019s a vital part of a boat insurance policy.<\/p>\n There are two types of boat insurance to consider:<\/p>\n With actual cash value, your insurance company reimburses you for the value of your boat, minus depreciation. The negative of ACV is that, if your boat is a total loss, your insurance carrier will only give you the amount they feel the boat is currently worth, not the amount you believe it is or the amount it would cost to replace it with a similar boat. If the boat is deemed repairable, you\u2019ll get a payment for the total cost of the repairs, less a percentage that equals the depreciated value of the boat at the time of the accident.<\/p>\n With AAV, your insurance reimburses you for the real cost to replace your boat should it be considered a total loss \u2013 or pay for the full repair amount of damages to make it as good as new.<\/p>\n What your boat insurance will cost you depends on several factors, including:<\/p>\n The majority of insurers rate and underwrite a boat policy in the same way car insurance is rated \u2013 by the age of the operator.<\/p>\n Speaking about insurance, in case you\u2019re wondering if a drunken boating violation can affect your car insurance rates, it\u2019s just as illegal to operate a boat of any size under the influence of drugs or alcohol, as it is for driving a car under the influence. So, the answer is \u2013 it\u2019s quite possible, depending on your particular state\u2019s handling of boating under the influence.<\/p>\n1. Actual Cash Value (ACV)<\/h2>\n
2. Agreed Amount Value (AAV)<\/h2>\n
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