Why Many Consumers Don’t Buy Boat Insurance (and Why They’re Wrong)

Unlike auto insurance, which is required by most states, boat insurance is not a required coverage. That means that many boat buyers and boat owners might not want to purchase insurance, as they feel that it won’t be necessary. However, it’s important to convince consumers to get involved with a boat insurance program, whether they boat for pleasure or for work. When a customer comes to your agency and tells an agent they don’t want to get insurance this year for their boat, make sure they are aware of the reasons why they need to stay covered. Here’s why many consumers think they don’t need boat insurance, and why they are wrong.

“I Only Use My Boat Sometimes”

Many consumers feel that they don’t need boat insurance because they are only using their boat a few months out of the year. Most likely, a boat is only being used during summer. But that doesn’t mean that anyone should forego insurance. Things can happen to your boat even when you’re not using it. Accidents can happen at any time and it’s best to be prepared for the worst case scenario. It’s more expensive in the long run to not have insurance on a boat. If something happens and you’re not insured, then you’re simply out of luck. That’s why it’s best to have a boat insurance policy ready at all times.

“But Boat Insurance Isn’t Required”

There are only two states that require boat insurance right now in the United States. Those states are Arkansas and Utah. However this does not mean that a consumer can get away with being uninsured. The place where the boat is being held might require some type of coverage. The bank, marina, or even boating events might require the consumer to have some type of coverage, according to the Boat Owners Association. And a homeowner’s policy might not be enough to cover a consumer, depending on the type of boat they have.

“I Can’t Afford Boat Insurance”

The biggest reason people cancel their boat insurance is to save money. But cancelling a consumer’s pleasure boat insurance program means losing money in the long run. Boat insurance can range in costs anywhere from $300 to $500 a year, according to Trusted Choice. If payment is an issue, a consumer can just purchase liability insurance to keep their boat covered at the bare minimum. Since boat insurance is flexible, there’s probably a plan that’s right for all consumers. Year-round coverage can also open up the door for discounts through your agency in the future.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ business and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.