How Much Does it Boat Insurance Cover in Ontario
Purchasing a boat is quite an expensive investment. You could spend even more on repairs and accident claims without proper protection. Thankfully, here’s where boat insurance comes in. But how much is Boat Insurance Cover in Ontario? It’s safe to say boat insurance quotes are like ebb and flow, rising and falling, depending on different factors.
There is no one-size-fits-all when it comes to pontoon boat insurance in ontario. Prices can rise and fall like the waves depending on the client, and it isn’t just about whether or not they’re capable on the water. Different factors affect the price you pay for your coverage. Portside Insurance wants to help you avoid bloated prices, so we’ve put together a list of things that will affect the cost of your insurance.
Boat insurance is not Boat Insurance Cover in Ontario. That being said, there are certain circumstances when it becomes mandatory, for example, when you finance your boat the bank will want confirmation that the boat is insured for the life of the loan. Also, if you are mooring at a marina, you may be required to carry a certain amount of liability insurance.
Most consumers would likely admit, even if somewhat reluctantly, that there are specific services or amenities that simply must be included in their monthly budget regardless of the actual/individual costs. Public utilities would conceivably be foremost on their minds, while many people might also include their vehicle operating and maintenance expenses within their list of necessities.
What is the different between Agreed Value and Actual Cash Value?
Boat Insurance Cover in Ontario are terms that refer to how the insurance company calculates a loss settlement. Actual Cash value means that the insurer will apply depreciation to the replacement value of the vessel to determine the maximum settlement amount, so you may not receive the full value listed on your policy.
To determine the depreciation amount the insurance company will consider all of the following:
- Condition of the vessel immediately prior to the damage,
- Re-sale value of that vessel and,
- Normal life expectancy of the vessel.
Agreed Value means that the insurer agrees to pay the full value listed on your policy declarations page in the event of a total loss; depreciation will not be applied. An Agreed Value policy is the better option and provides you, the insured, with peace of mind knowing that your investment is protected. See our General questions page for more information.
Am I covered while trailering my boat?
When talking about trailering your boat, it’s important to consider the two main parts of a marine insurance policy – the physical damage coverage, and the liability coverage. Generally, marine policies will cover physical damage to the boat while it’s being trailered, and the auto policy will cover liability losses.
For example, if you are trailering your watercraft and someone rear-ends you, damaging the watercraft, the marine policy will respond. If your trailer side-swipes another motorist, causing damage to the third party vehicle, your auto policy will respond.
Insuring your watercraft for the right amount is very important. If you over-insure your boat you are paying more premium than you need to and if you under-insure your boat and a loss occurs you could be left covering the cost of damage, theft or loss of property out of your own pocket.
What Does Boat Insurance in Ontario Cover?
When filing an insurance claim, you have two settlement options:
- Actual cash value coverage – replacement and depreciation costs, as well as the overall condition of the situation and the boat, its resale (second-hand) value and average life expectancy.
- Agreed value coverage – only the amount specified in your insurance policy agreement will be reimbursed, with no depreciation applied.
Your basic Boat Insurance Cover in Ontario should include the following benefits and liabilities:
- Collision damage – provides repairs or replacements for your boat in case of a collision.
- Property damage liability – entails the damage you cause with your watercraft to someone else’s boat, dock, or other property.
- Bodily injury liability – if someone is injured on your boat, this liability will reimburse the medical bills, legal fees, and recovery costs.
- Uninsured boater liability – intended to compensate you for injuries suffered aboard your boat due to another boat’s operator who lacks liability insurance.
- Guaranteed replacement cost coverage – if there’s a total loss of the vessel in the first three years, you will be reimbursed up to the amount required to purchase a new vessel of the same quality and company.
- Loss of use coverage – if a watercraft is lost or damaged due to an insured peril, your insurer will reimburse you for expenses incurred for the rental of a substitute vessel (within your policy limits).
If this happens during a trip/vacation, an additional reimbursement will be provided for accommodations, meals, or alternate modes of transportation (taxis or public transport).
How Can I Lower The Cost Of My Insurance Policy?
Here are a few things to keep in mind if you want to lower the cost of your boat insurance policy in Ontario.
- Educate yourself to become a more experienced sailor
- Invest in safety equipment
- Invest in a proper and safe storage facility for your boat
- Keep the chances of an accident at the lowest
- Maintain a ‘clean claim history.’
Stick to these points and keep Boat Insurance Cover in Ontario to a bare minimum in all fields, as companies track your history of previous insurance claims.
Purchasing a boat is quite an expensive investment. You could spend even more on repairs and accident claims without proper protection. Thankfully, here’s where boat insurance comes in. But how much is Boat Insurance Cover in Ontario? It’s safe to say boat insurance quotes are like ebb and flow, rising and falling, depending on different…