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Auto Insurance vs. Boat Insurance: What are Their Differences?


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Boat and car insurance are two different insurance policies designed to protect you financially should you become involved in an accident or experience other damage while operating a vehicle. While they may look similar on the surface, some important distinctions between the two are important to consider before purchasing an insurance policy.

At the most basic level, car insurance is designed to protect a driver and their car in case of an accident. This coverage includes medical expenses incurred due to an accident, as well as property damage and liability for any other person injured in the accident. 

On the other hand, boat insurance is designed to cover the boat itself in case of an accident, as well as any liability the owner may face if their boat causes injury or damage to someone or something else.

Boat Insurance Can Be Purchased for an Agreed Value

Another key difference between car insurance and boat insurance is that boat insurance can be purchased for an agreed value. This means you can purchase your boat’s coverage for a pre-determined amount, regardless of its actual market value. 

This is especially important if you have a newer boat that may be worth more than its book value. On the other hand, car insurance is typically based on the vehicle’s actual market value.

Boat Insurance Can Be Suspended

Another key difference between car insurance and boat insurance is that boat insurance can be suspended. This means that you may be able to suspend your coverage for some time if your boat is not in use. This can be a great way to save money if you don’t plan on using your boat for an extended period. Car insurance, on the other hand, typically must be in effect at all times.

Boat Insurance is Not Required

Unlike car insurance, boat insurance is not required by law in most states. This means you are not legally obligated to purchase coverage for your boat. However, it is still highly recommended that you do so to protect your investment. Additionally, some lenders may require you to purchase boat insurance if you are financing the purchase of your boat.

Why Boat Insurance Is Just As Important As Car Insurance

Boat insurance is just as important as car insurance for many of the same reasons. It provides financial protection if you are involved in an accident and can help to cover the costs of repairs if your boat is damaged or stolen. Additionally, it can help to protect you if another person sues you due to an accident involving your boat. Ultimately, boat insurance can provide peace of mind and help to ensure that you are financially protected in the event of an accident or other unforeseen circumstances.

The Bottomline

Boat insurance and car insurance have a lot of similarities but also a few key differences. Boat insurance is typically more expensive than car insurance due to the risk of property damage, theft, and liability from a boat. Boat insurance also covers personal property and navigation gear that are not included in a car policy. It is important for boat owners to consider the different coverages available and to consider the risks associated with operating a boat before purchasing an insurance policy.

Bassine Insurance is a boat insurance agency. We also offer a wide range of insurance products. Get in touch with us.

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