What is Personal Watercraft Insurance?

Outdoor enthusiasts will tell you that watercrafts are a fun and great way to enjoy the outdoors. Boats, Sea Doos, Wave Runners and other watercraft are enjoyed by many people. However, statistics show that the use of these recreational vehicles leads to thousands of injuries each year. Because of the risk of injury, acquiring personal watercraft insurance is essential to anyone using these devices.

Personal watercrafts are not usually covered by a homeowner or vehicle insurance policy. People will usually have to purchase a special insurance policy.  The insurance you purchase should cover an injury to you or a third party, property damage, passenger liability, medical costs, and theft.  The least expensive choice is liability only coverage. This is much like a car liability policy that covers another person in the event of an accident or injury.

Insurance policies can vary among providers but usually covers a set maximum limit payment for an injury to another person and damage to your own or another person’s property. There will also be a set deductible for medical coverage and theft that is determined by the provider. There are also providers who offer water sports liability, which covers risks related with recreational activities such as waterskiing. If you want to ensure that you are completely protected, there are liability packages available that will cover up to $1 000,000 and can cost about $300 per year. There are also insurance policies that will offer discounts if you insure more than one watercraft.

There are two main types of watercraft insurance overage. The insurance can either provide coverage based on the Actual Cash Value of the property, or on the Agreed Amount Value. Policies based on the Actual Cash Value rely on the current value of the equipment at the time of loss or damage. It will be based on the market value found in watercraft pricing guides. The Agreed Amount Value covers policies that are based on the set amount agreed by the client and the insurer. If a watercraft is damaged or completely destroyed, the purchaser will be compensated for the amount that was agreed on at the time of signing the policy. If there is a fractional loss that does not result in depreciation of the watercraft, you may be able to replace the watercraft.  For an additional cost you can insure your personal watercraft with extra options such as coverage for sinking, towing and assistance, damaged vehicle removal, and pollution liability coverage.

Eligibility and costs for watercraft insurance is based on a number of factors that can include, but may not be limited to, the following: the operator and owner must be over 16 years old and hold a valid driver’s license, there must be no previous major driving violations for a specified number of years, and there must not be a history of repeat claims.

Personal watercrafts are a great way to enjoy the water. Unfortunately, many people think they are covered under their homeowner’s policy until there is an accident. Before you hit the water, make sure you have personal watercraft insurance. There are many personal watercraft insures on the market, so it pays to shop around to get the best coverage at the best rate. Make sure that you talk to the insurance provider about your specific requirements to make sure you are completely covered. You never know when a serious accident will happen. With the right insurance coverage, you will be able to have a fantastic time on your watercraft knowing you are protected.

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