The global boat insurance market is predicted to reach $1260 million by 2028, reflecting rising boat sales alongside the number of individuals taking out a boat policy. The notion of insuring a vessel is less clear than taking out a home, car, or travel premium, and many of those in the market are unaware of the benefits. In this blog post let’s take a look at the advantages of boat insurance, from protecting your purchase to potentially avoiding financial difficulties in the future.
Contents
Advantages of Boat Insurance
1. Peace of Mind
2. It Offers Greater Protection Than Home Insurance
3. Compliance with the Law
4. You’ll be Protecting Your Asset
5. Financial Protection
6. Protection Against Damage
7. Protection Against Theft and Vandalism
8. You’re Never Alone
9. Premiums Can Be Tailored to Your Needs
Conclusion
Advantages of Boat Insurance
Boat insurance comes in many forms, depending on your type of boat, your location, and your insurance agent or insurance company. Some of the information listed here may not come as standard protection with all policies, and could be listed as additional cover, available for a higher premium.
● Peace of Mind
Perhaps the most underrated advantage of boat insurance is the equanimity it brings. Recreational boating should be an enjoyable experience, and none of us want to escape life’s stresses and strains, only to worry about the potential consequences of being on the ocean. Insurance protects you against mishaps, allowing you to enjoy the experience with a clear head.
● Compliance with the Law
Any boat with an engine of 10HP or more will need third-party liability insurance as a legal requirement, and that’s a bare minimum. Many marinas will also require a boat owner to present their boat insurance policy, prior to allowing them to dock there. Being covered gives you much more freedom when it comes to travelling around from one marina to another.
● You’ll be Protecting Your Asset
Many boats are classed as luxury items, or once-in-a-lifetime purchases, with the average cost of a yacht in Malta being €289,349. Should anything happen to your pride-and-joy, do you have sufficient means to rush out and cover the cost of repairs or replacements?
● Financial Protection
In addition to potentially losing your investment in a collision, storm, or fire, any accidental damage deemed to be your causing may be very expensive indeed. You could be held liable for both repairs or replacement costs of another vessel or building.
If some form of bodily injury occurs to another person, you may have to pay for their medical costs or hospital bills, and they could also take you to court. In cases of a serious accident involving several people, such charges could be major.
A US study found keeping an ‘improper lookout’ to be the second highest cause of boat accidents after driver inattention. Even if your eyes are peeled for other boats, it’s not as easy to spot swimmers, kayakers, and submerged objects, so it pays to have protection against all eventualities.
● Protection Against Damage
Freak events such as storms or fires can occur, even if you’re an experienced sailor with a clean record. Most forms of boat insurance will cover you against fire and some natural weather events, and our own standard cover includes lightning strikes. For a comprehensive look at the covered perils by boat insurance, read our article on What Does Boat Insurance Cover?
● Protection Against Theft and Vandalism
Boat insurance can protect you against the complete loss of your vehicle through theft, even if it’s in storage, or in transit. It can also cover you against physical damage from vandals.
● Premiums Can Be Tailored to Your Needs
Boating insurance doesn’t come with a fixed cost, but is tailored to your vessel, experience, and any additional benefits required.
The cost of boat insurance can vary due to the size of your vessel, for example, larger boats may cost a larger premium to ensure than smaller ones, and if you’re an infrequent sailor with no ambitions for speed, sport, or ventures beyond the horizon, that will be taken into consideration too. For more information on the factors affecting your premium, see our post on Your Boat Insurance Coverage Questions Answered.
Conclusion
No boat owner is immune from accidents and freak events, no matter how experienced they may be. The advantages of boat insurance far outweigh the potential costs of replacing your vessel, or being faced with litigation, and the right boat insurance policy will allow you to indulge in your favourite pastime, free-from-worry.
Begin your own search for the right plan in Malta by looking through our clear and transparent benefits on our boat insurance page.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.