Boat insurance coverage terminology can be confusing and understanding it can mean the difference between having the boat insurance coverage you need, and an accident that may not be completely covered. Although, boat insurance coverage can be complicated Global Marine Insurance Agency is here to take the mystery out of choosing the best boat insurance coverage and finding the best boat insurance rates for you. Here, we’ve listed some of the most popular boat insurance terms to help. You can also call 800-748-0224 or email us at [email protected] and one of our skilled customer service representatives would be happy to assist you.
On-water towing: Unfortunately, your boat could break down in the middle of a body of water, and then what would you do? On water towing and onsite repairs can be expensive, but fortunately some boat insurance coverage includes reimbursement for these expenses. Having a policy that features on-water towing can give you peace of mind and save you an expensive bill later on. You can ask your Global Marine insurance representative if your boat insurance quote includes on-water towing.
Total loss: An accident might result in repairs that would cost more than your boat is worth. In this case, the insurance agency would more than likely offer you the amount that you would have been able to sell your boat for prior to the damage. It would be impractical to cover repairs, when you could buy a new boat of the same quality for less.
Roadside assistance: This may not seem important when looking into boat insurance coverage, but it could be really helpful to have. If you become stranded while transporting your boat roadside assistance would provide towing to the closest repair shop and any needed labor at the time of the disablement. Under some circumstances necessary repairs could even apply to the to the tow vehicle or trailer if the damage occurred while towing the boat. This may include mechanical issues, battery failure, flat tires or simply getting stuck. Your customer service representative can tell you if your boat insurance rate includes roadside assistance. Some companies like Progressive automatically include it in all of their policies.
Lay-up dates: For many boat users, there is a period during the year where the boat is not in use. Boat insurance rates may be lower if the policy includes a lay-up period. However, if the boat is not actually stored during this time and damage is caused, there will be no coverage.
Latent defect: Boat insurance coverage may include the possibility for latent defect. A latent defect in maritime use refers to a defect that cannot be found by an inspection or test that the law reasonably requires. If the defect should have been easily discovered during routine inspections and testing then it would not be considered a maritime latent defect. If your boat insurance policy includes a latent defect clause which provides coverage then it will not cover the actual defective part, that part would be the responsibility of the manufacturer. Instead the coverage would include damage that was caused to the boat as a result of the latent defect.
Disappearing deductible: Thankfully accidents are the exception not the rule. Policies that include a disappearing deductible account for this, making the deductible (or what you pay out of pocket before your insurance will pay a claim) smaller each year that you don’t file a claim. This is attractive because “good behavior” over time could end up saving you money someday when you do need to file a claim.