Common Insurance Mistakes Can Sink Boaters’ Finances

As Action on the Water Heats Up, Here’s Some Advice Agents Can Offer Clients

As boating season heats up once again, independent agents across the country may see clients who are re-evaluating their boat insurance needs, and looking to agents for advice.

There are five common mistakes boat owners make with their insurance coverage. Whether they believe they do not need insurance because they own their boat, or because the boat isn’t physically in the water during the off-season, there are widespread misconceptions about when boat and yacht insurance coverage is necessary. Also, any boater should have some type of coverage for financial protection in the long term.

Helping customers avoid the following most frequent mistakes will help keep boaters on a course toward getting the best value and protection. They are:

1. Dropping Coverage: Clients sometimes drop coverage when their boat is paid off. But boat insurance covers more than just the vessel — it covers personal injuries, environmental cleanup and liability issues that could occur out on the water. Boating without any insurance coverage creates a large financial exposure that could ruin any family’s finances.

2. Picking on Price: As wallets tighten, insurance clients are more tempted than ever to shop for coverage based on price alone. But paying a little more for a policy could bring significant added-value to customers. For example, paying less for insurance could mean a lower policy limit and less coverage. It is also important to fit customers with a boat insurance policy from a carrier that has strong financial ratings.

3. Reducing Liability: Clients sometimes opt to lower their liability or other limits to save on monthly premium costs. Agents should help boaters identify the amount of coverage they need to protect other personal assets. It doesn’t make sense for them to have too much coverage, and by helping them avoid having too little, you are looking out for their best interests.

4. Unaffordable Deductibles: As with any insurance product, it’s a mistake for clients to choose deductibles they can’t afford. Choosing a higher deductible may be a good way for customers to save on monthly premium costs. However, make sure they choose a deductible they can afford in the event of a claim.

5. Off-Season Cancellations: Many boat and yacht owner will intentionally cancel their coverage during the off-season. This overlooks many risks that could damage the boat when it’s not in the water. Dropping coverage could leave the boat owner exposed if the boat is damaged in a fire at the storage facility or if a tree crushes the boat parked in the driveway thanks to a winter ice storm.

Many boat owners may not realize their boat insurance coverage protects them from a lot more than just damage to their own boat.

Back injuries are one of the most common boating injury claims, and treatment costs can exceed thousands of dollars. Without sufficient insurance coverage, the vessel owner may have to shoulder the financial burden from medical bills to treat injuries suffered onboard their boat. What’s more, the costs to repair and replace damaged property or clean up large fuel spills could be significant.

If boaters are eliminating or reducing coverage as a way to cut costs, now is the time to prove the value an independent agent brings to the table. Ensuring boaters have the right coverage in today’s market is a key part of an individual’s long-term financial security. Insurance is there to protect a family’s financial position, and changing the policy to find a way to save money in the short-term should only be done with careful consideration and guidance.

There are certainly ways to save on insurance costs, but lowering policy limits or raising deductibles could be dangerous ideas.

One example of the right ways to save on boat and yacht insurance policies is taking a boating safety class to qualify for safety credits.

And having all personal insurance policies with the same carrier will often times yield a significant cost benefit to the customer.

Boating is an activity that alleviates stress from people’s lives as they enjoy time out on the water, away from day-to-day concerns with friends and family.

The last thing a boater wants to think about when spending time on their boat is what would happen to their finances if something went horribly wrong.

Acting as a partner to help boaters secure the best insurance coverage will provide peace of mind and build loyalty as they will understand their agent is looking out for their best interests and enabling them to enjoy boating without worries.

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