If
you are a boat owner, then you would have already insured
the vessel. If not we must insist you do so right away. Never
mind if you take the boat out only during weekends, and that
too for paddling across the placid and shallow lake down
in the valley. The bigger the vessel, say a fishing trawler,
the bigger the financial risk you face every time you take
it out to sea or to deep waters. There are a good number
of companies specializing in providing boat/marine insurance
policies. Choosing the right one for your boat would require
some care and calculation on your part. We suggest you go
step by careful step in selecting the right insurance cover
for your boat.
Step
1- Get competitive policies: Mention the type of boat to
the insurance companies. Ask each one of them to send
you a quote. Then compare like-for-like policies and premiums.
Choose one that sounds the most competitive as long as they
offer the same level of protection. Many insurance companies
offer discounts, e.g. for installing security devices aboard
your boat. Such discounts are the best ways to minimize premiums
and maximize the value
for money of your policies.
Step 2-
Match value to the cover: Match the insurance cover to
the value of your boat. It wouldn’t make sense to
get a motorboat policy for a kayak. Or to get a cover worth
a new boat for your much used and rusted boat, no matter
how dear it is to you. Figure out a depreciated value of
your vessel and match the cover to it. That way the premium
would also be less and affordable. Watch out for phrases
like “new-for-old’ and “market value replacement”.
These offer two different levels of cover.
Step 3-
Ignore the frills: Weed out the fancy frills – the
extra fancy benefits thrown in by the insurance companies.
Decide whether you want them or just the basic cover for
your boat.
Step
4- Determine the excess: You must know how much you are
willing
to pay as excess if you have an accident. The
higher the level of excess you are willing to pay, the loser
your premium would be. That’s because you are effectively
sharing the risk with the insurance company. A higher level
of excess would also mean a huge hole in your pocket if the
accident was a minor one involving just minor repairs; you
would end up paying a huge chunk of the cost of repairs.
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