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What You Should Know About Boat Insurance

One of the oldest types of insurance is boat insurance. Dating back to the 1800's, Lloyds of London was one of the first providers of boat insurance. It started with merchant ships, and now includes everything from supertankers to jet skis.

In many ways, insurance for your boat is very similar to car insurance, in that it offers liability protection and physical damage protection. Liability is the type of coverage that protects you and your assets from lawsuits in the event of an accident. So if you run in to someone or thing with your boat and someone gets hurt or their property is damaged, your boat insurance liability will protect you. Physical damage coverage will pay for the damages to your boat, less the deductible.

The pricing and underwriting of this type of insurance is also similar to auto insurance. If you have a good driving record, you will most likely get a preferred boat insurance rate. Conversely, if you have a poor driving record and purchase a high-performance boat, this will result in a higher insurance premium. Things like the value of the boat, horsepower, and where the boat is normally used are also considered when pricing the coverage. Make sure you make the insurance company aware of all operators of your boat, so you are properly protected.

Boat insurance has its own set of discounts available, so make sure your agent or broker goes over these with you. Some of these include Coast Guard safety course completion, depth finder, navigation system (LORAN), ship to shore radio, and fume detection systems. Different deductibles can also help contain the cost of your insurance.

If you purchase an older boat, your insurance company may require a marine survey be done prior to writing the coverage. This is where a qualified inspector goes over your boat from stem to stern, and points out deficiencies that may need to be corrected. They may also help in determining the insurance value of your boat.

You never know when an accident can happen, and as with all other types of insurance, it's best to understand what your boat insurance policy covers prior to that happening. Finding and buying a boat is the first step, but making sure it is registered, licensed, and holds the proper insurance is essential to responsible boat ownership. Don't take that thing out on the water without all your ducks in a row - pun intended.

Lawrence Reaves writes for Virginia Insurance Group, a leading Richmond Insurance broker offering products and services such as Richmond boat insurance and Richmond car insurance. Virginia Insurance Group can be found online at VirginiaInsurance.com.