You don't believe in the Loch Ness Monster. You don't believe your friend caught Jaws fishing off the Florida coast. So why do most boaters believe boat insurance does not cover them wherever they go?
Progressive Insurance surveyed more than 1,000 boat owners. It uncovered a few insurance myths floating around. Here's a sample of the findings and the facts behind each:
Myth: Everyone pays more for insurance because of the hurricanes from a couple of years ago.
Reality: Even though it's believed by 74 percent of respondents, it isn't true. Boat insurers generally price policies based on claims in each state. For example, Texas customers won't pay more for insurance because of hurricanes in Florida.
"I have noticed claims don't happen very often on boat insurance policies from boat owners. Most boating accidents you see out there involve people renting boats," says Lucas Ziegler, agent at Texas Prime Insurance, an independent insurance agency in Austin, TX. " I have noticed boat owners tend to be very responsible, know their boats, and take care of them. Some go as far as naming them. You simply don't mistreat something you name. Therefore, boat insurance in Austin tends to be really inexpensive!"
Myth: TexasBoat insurance covers me anywhere I decide to go boating.
Reality: Seventy-six percent of respondents believed this one. The reality is some insurers only provide coverage where the boat is used most. Insurers may limit coverage to 100 nautical miles of your home port. Progressive provides coverage virtually anywhere you decide to go in the continental U.S. and Canada.
"In most cases, restrictions will not be a problem," says Lucas Ziegler. "Coverage problems will start arising when insuring larger boats like yachts and sail boats. When you see a hurricane coming, you will see all the smaller boat owners haul their boat away. In many cases, larger boats and sail boats don't have this option."
Myth: I'll get a better insurance rate if I buy from the same company that insures my home or car.
Reality: Buying more than one product from the same insurance company doesn't mean you get the best rate even though 45 percent of respondents thought so. Boaters can save by shopping around and combining specialized policies from different companies.
"It's important to understand what's available," said Lucas. "You want to be properly protected in case your boat is stolen, you get into an accident or contents are damaged. We're separating fact from fiction so boaters can make the best insurance decisions possible."
Myth: Boat insurance will expensive. As expensive as my auto insurance!
Reality: Boat insurance tends to be really inexpensive. It will depend on the coverage, but in general, a boat insurance policy will be much less than auto insurance
"I've insured a $50,000 boat with excellent coverage for less than $500 per year," says Lucas. "of course it was an older driver with very good insurance history, but in general boat insurance is very inexpensive. Most of the first time boat owners I deal with get shocked at how low the premium is!"
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