Know Your Insurance | Boater’s Insurance

As far as risks go, driving a boat on the water is just like driving a car down the road… Some would even say it’s even more dangerous. When accidents happen on the water, they can be more severe than your typical auto accident. A “fender bender” on the water is more likely to result in serious injuries. This is one reason you need proper boat insurance.

Boat insurance: What’s required?

While Alabama is one of the many states that doesn’t require boat owners to have insurance, you may still be required to have it by the marina where you dock your boat. If you took out a loan to purchase the boat, the lender may require you to have insurance as well. 

Still, even if no one is requiring you to have insurance, you should have insurance in place. 

Not convinced? According to the latest Executive Summary, in 2020, the Coast Guard counted 5,265 accidents that involved 767 deaths and 3,191 injuries. Furthermore, there was approximately $62.5 million dollars of damage to property that same year.

These numbers are startling and should prove how critical it is to cover your bases when it comes to being out on the water. 

What does it cover?

Boat insurance can provide a range of coverages. A good policy will likely cover you in two important ways: liability and physical damage.

Liability insurance: If you’re responsible for an accident, your boat liability insurance will cover property damage to another boat, bodily injury, pollution liability, and wreckage removal. Then, if there’s a lawsuit filed against you, your boat liability insurance will also cover your legal fees. 

So, how much do you need? We recommend at least a $1,000,000 liability limit because accidents do happen. However, the faster and more powerful the boat, the higher your limit needs to be.

If you have a bad collision involving accidental death and only have a $100,000 general liability limit, you’re going to be in bad shape – to put it nicely.

Physical damage insurance: This provides coverage when your boat suffers damage from a storm, theft, collision, fire, or sinking. With physical damage insurance, you can restore the boat to its original condition or receive reimbursement on its current market value depending on the terms of your policy.

How much does boat insurance cost?

The cost of boat insurance greatly depends on YOUR boat. Factors such as the type of boat, how it’s powered, the water it’ll be on, and how often you’ll be using it throughout the year matter.

Keep in mind, many insurance providers will offer a discount if you’ve passed an approved boating safety course. Fortunately, Alabama state law requires boat owners to take this course already.

Beyond coverage: The importance of safety!

Alcohol use is the leading known contributing factor to fatal boating accidents. People are out, enjoying the sun, drinking, and not being as attentive as they should be while operating a vessel. Sadly, this combination increases the chance of an accident on the water.

In order to keep yourself and your passengers safe, ALWAYS:

– Make sure everyone on board is wearing a life jacket

– Avoid alcohol if you’ll be operating the boat

– Wear the kill switch around your wrist if you’re operating the boat

– Operate at a safe speed, especially in crowded areas

– Be aware of not only what’s going on in your boat but also of the other people and vessels around you. You have to know what they’re doing.

Hopefully, these safety tips and bits of insurance advice will allow you to enjoy your time on the water, giving you the peace of mind knowing you’ve taken the proper precautions to ensure you’re not going to end up in a bad situation that could ruin your summer boating fun.