Why do I need watercraft insurance?

Dreaming of the Weekend and Getting out on your Boat?  Don’t forget your Watercraft Insurance!

As we sit here in the bright lights of the office or in the cold of winter, many of you are dreaming warm thoughts about the coming spring and summer months when you can finally break out of your winter cocoon, get outside in the warm sunshine, and back on the water!

When getting on the water in your pontoon boat, fishing boat, ski boat, Jet Ski, etc. make sure you are adequately covered just like you would with your autos or home.  Here are some things to think about when considering watercraft insurance:

1. Why do I need watercraft insurance or boat insurance?
   • In 2013, there were 560 deaths, 2620 injuries, and 4062 accidents reported from recreational boating activities. (Source: http://www.uscgboating.org/assets/1/AssetManager/2013RecBoatingStats.pdf)
   • In South Carolina in 2013, 6 accidents, 4 deaths, and 4 injuries were directly tied to alcohol as a contributing factor for the incidents. (Source: http://www.uscgboating.org/assets/1/AssetManager/2013RecBoatingStats.pdf)
   • There is extremely limited property damage and liability coverage under a homeowners policy for watercraft. In fact, some watercraft is flat out excluded so don’t assume you have coverage there.
2. How much is it going to cost me?
   • Watercraft insurance can run anywhere from a couple hundred dollars a year to over a thousand. It all depends on the type of watercraft needing coverage, the coverage requested, and your personal risk characteristics.  As you can imagine, a yacht is going to cost a whole lot more than a john boat.
3. What factors help determine my watercraft premium?
   • The following is a list of characteristics that affect your watercraft premium: (Note: This list is not exclusive and factors differ from company to company.)
     • Type of boat
     • Coverage requested (i.e. liability only, comprehensive & collision, deductible)
     • Limits of coverage
     • Watercraft usage
     • Watercraft claims history
     • Your age & gender
     • Your driving history
     • Watercraft description (i.e. year, make, model, inboard/outboard engine)
     • Horsepower
     • Your personal credit score (this is becoming common with most insurance coverage)
4. Should I buy the boat or boat insurance first?
   • Insurance is definitely a cost in owning a boat. As such, it should be factored into the cost of purchasing your boat.  So you may not need to actually purchase the insurance before buying the boat off the lot, but it’s good to get the coverage quoted through a reputable insurance agent so you know what to realistically expect when you need to make the actual insurance purchase.

Owning a watercraft is a lot of fun, but make sure you are smart and insure yourself before you head out on Lake Murray in Lexington or the Intracoastal Waterway in Charleston!  Call Livingston Insurance Agency at (803) 791-1120 for your watercraft quote today.  We have some amazing companies that offer watercraft insurance!