Boating Secrets

Boats are vehicles just as cars are. That means they need to be registered with your state and you’ll need to obtain a boating license for it. Your boat trailer will also need to have a separate license plate.

All you need to do is go to your department of motor vehicles and take your boat registration or loan papers to your department of motor vehicles and they will take care of the rest. Sometimes, the dealer will go ahead and take care of this for you.

Once registered, you’ll also need to obtain boat insurance. There are actually a lot of considerations you have to take into account when obtaining boat insurance.

One option is to add the boat to your homeowners insurance. However, homeowners insurance often limits certain marine-related risks such as salvage work, wreck removal, pollution or environmental damage.

Whatever amount the boat is insured for, it should have a separate but equal amount of funds available for any salvage work. This means that you're compensated for the loss of your boat and not having to pay additional, out-of-pocket costs to have a wreck removed from a waterway.

These are the two main choices that boater's face and depreciation is what sets them apart. An "agreed value" policy covers the boat at whatever value you and your insurer agree upon. While it typically costs more up front, there is no depreciation if there is a total loss of the boat (some partial losses may be depreciated). "Actual cash value" policies, on the other hand, cost less up front but factor in depreciation and only pay up to the actual cash value at the time the boat is declared a total or partial loss or property was lost.

A good insurer will tailor your coverage to fit your needs so there will be no surprises. For example, bass boaters may need fishing gear and tournament coverage as well as "cruising extensions" if they trailer their boat far from home. You may want "freeze coverage" if you live in a temperate state because ironically, that's where most of this kind of damage occurs. "Hurricane haul-out" coverage helps foot the bill to move your boat to dry ground.

It is best to have what is known as an "All Risk" policy, which will provide coverage for all types of losses except those specifically excluded in the policy. Typical exclusions may include wear and tear, gradual deterioration, marring, denting, scratching, animal damage, and manufacturer’s defects, defects in design, as well as ice and freezing.

You can, however, obtain liability only coverage just as with a motor vehicle. Liability coverage will cover only another party in the event of loss, damage, or loss of life. It will not cover your boat or any of your personal property.

Physical damage coverage will reimburse for damage to the boat and its machinery. As we’ve said, the best physical damage policy is an “all risk” which covers any cause of loss not specifically excluded in the policy, like wind storms, vandalism and collisions with the dock. Experts recommend selecting a policy that continues to cover your vessel even when it is stored or being transported by trailer.

You can also add on medical payment coverage which pays your first aid, ambulance and hospital bills in case of accident. This coverage will also cover any passengers injured on your boat. Towing and assistance cover pays for emergency assistance such as boat towing, emergency repairs while underway or fuel delivery at sea.

Towing and assistance coverage pays for emergency assistance such as boat towing, emergency repairs while underway or fuel delivery at sea. When you carry personal property coverage, you will be reimbursed for loss of personal effects, clothing, fishing gear and more. Finally, while not mandatory, uninsured boater coverage compensates you and your passengers for injuries caused by another boat owner who carries no liability insurance.

The general rule of thumb with any insurance coverage is to shop around. Ask people you know who own boats and find out who their insurer is. Compare quotes online and get the best deal you can. Insurance is there in the event that something happens. Often, it doesn’t get used, but it can really give you peace of mind – plus, it’s the law!

Now you’ve got everything all figured out – you own your boat, you’ve gotten it registered, and you’ve obtained insurance coverage. Now that you’ve got your boat, it’s very important to keep it maintained correctly so that it lasts as long as possible.