Now that you know the importance of having the right pleasure craft insurance, what are the factors that one should consider when purchasing the most suitable pleasure craft insurance?
As many of you know, the first and most important factor in selecting insurance is to identify the financial coverage that the plan can offer. Fortunately, most comprehensive boat insurance plans in the market are able to cover damages as high as your insured value preventing you from suffering major financial losses. Additionally, you have to pay close attention to the premium that comes with the insurance. The premium is dependent on many factors and so, we will discuss this topic in the later part of this video.
Apart from the premium and the coverage, we highly recommend you to know your insurer well. As each insurer varies in financial strength, products and support offered, your customer experience will depend on these factors. One effective way to identify suitable insurers is by checking out their financial strength ratings provided by reliable and reputable agencies like Standard & Poor’s, Moody’s and Fitch.
And for our final tip, we would suggest you look through the insurance contract closely and fully understand the clauses involved. Based on these clauses, the amount you can claim in the event of an accident may vary, so be careful and attentive to these details.
In fact, when insurers underwrite pleasure craft insurance, there are many other factors that are taken into consideration. For example, desired insured value, type of boat, age of boat, previous boat history and more. From the current market status, we can see that having a third party coverage plan is a mandatory requirement set by MPA, which can cost minimum a few hundred dollars per annum.
Comprehensive plans, being a more extensive plan than third party plans, will take more factors into consideration making it slightly more expensive than the basic third party coverage. Therefore, you might want to consider carefully on how much you plan on insuring for your boat because a comprehensive plan might cost more but it comes with a more complete coverage as compared to just the basic third party liability plan.