If you recently took the plunge and became a boat owner, it is likely that you have a number of questions regarding boat insurance. The two most common questions we receive are how expensive it is to insure a boat and if boat insurance is required by law.
While according to Transport Canada, boat owners are not legally required to insure their boat, however, it is strongly recommended. At Bow Valley Insurance, we can compare the rates and coverage options from a number of insurance providers to ensure that you not only get great protection for your investment but that your boat insurance is also affordable.
To find out exactly what you need to know about boat insurance, keep reading below.
What is the Cost of Boat Insurance?
There are a number of factors which will influence what the cost of your boat insurance will be. These can include the size and type of the boat, what activities the boat will be used for, the driver’s age and experience, where the boat is stored as well as how much the boat is worth.
How the cost of boat insurance is factored is similar to auto insurance. Typically, the more expensive your boat is, the more your premium will be. With boat insurance, potential repair bills are considered in the premium calculation so if you own a boat that would be difficult or very expensive to repair, this will usually mean that your premium will be higher.
Are Discounts Available?
You may be eligible for discounts on your boat insurance. While discounts can vary between insurance companies, some of the most common ones that you may qualify for are:
Multi-Policy: If you have other policies such as your home and auto insurance with the same insurance company you may eligible for a multi-policy discount.
Dry Dock: Some insurance companies may offer a discount if your boat is stored in a dry dock.
Safety Courses: While taking a boating safety course is always a good idea, it may also get you a discount on your insurance. Make sure you let your insurance broker know if you have completed any courses, or if you are interested in taking a course, request a list of insurers approved ones first.
Claims Free: If you have not made a claim over a certain period of time you may be eligible for what is called a claims-free discount. This is typically evaluated annually when your policy is renewed and may increase the longer you remain claim free.
What is Included with Boat Insurance?
Insuring your boat is a simple process and will give you peace of mind that your investment is protected. Typically, most policies will cover the boat and equipment on the boat in case of damage as well as recovery costs if your boat accidentally sank. Many policies also include liability coverage in case a passenger was injured or if your boat caused damage to someone else’s property. It is important to have enough coverage for your boat in addition to having liability protection as accidents, damage or break-ins can unfortunately occur to anyone. At Bow Valley Insurance, we will explain the different coverage options available to you and help you find a policy that suits your unique needs for the best price.
While it may not be legally required to have boat insurance, marinas and inland waterways will almost always require proof of insurance before they allow boaters to moor or launch. Make sure that you have the right coverage to protect your investment and enjoying boating season for many Alberta summers to come. To get a free, no-obligation quote, contact one of our experienced professionals at Bow Valley Insurance today.