Boat Insurance: What You Should Know

What You Need To Know About Bout Insurance.Boat Insurance

If you have a boat of any kind, it pays to learn about boat insurance. Also known as watercraft insurance, boat insurance will protect you, your boat and others in the case of a loss. While not mandatory, it is highly recommended for all boat and personal watercraft owners.

The Basics

Boat insurance is very similar to car insurance. Many of the same options and choices you have for your auto insurance policy will be presented to you for your boat insurance. The most important of these is liability coverage.  Liability insurance is extremely important to carry,  because if another person is injured or killed due to an at-fault accident with your boat, or another’s personal property is damaged, you can suffer huge financial losses.

Collision and comprehensive coverage will protect your investment in your boat. They will cover the cost to repair or replace your boat, motor, trailer and any equipment that is permanently attached to your boat in case of loss. Collision coverage is in case your boat collides with another boat or property and you are at fault. Comprehensive coverage is for other types of loss, such as storm damage, theft, fire or vandalism. Claims of these types are subject to a deductible that you choose when you take out your policy.

The Not-So-Basics

The amount that you can receive from a collision or comprehensive claim is based on the type of policy you choose. An actual cash value policy is based on the replacement cost of your boat minus any depreciation up to the date of loss. Claims are paid out for this amount minus the deductible. Agreed amount value is the other type of policy that does not factor in depreciation. Premiums are set based on an amount agreed to by the insurer and the insured, as to how much the boat is worth.

Boat insurance varies in price not only from company to company, but also from insured to insured. As with other types of insurance, the premium you pay depends on the rate set by the insurer. The rate is determined by underwriters who look at a variety of factors to determine exactly how much risk they are assuming by offering you boat insurance.

The boat itself is one of the major variables considered by an insurer when setting rates. The insurer will need to know the length of the boat, the horsepower of the motor and the year, make and model of both boat and motor.

Information about the boat owner will also make a difference in your boat insurance premium. You will need to give information about your driving record. If it is less than perfect, expect to pay more for boat insurance. Your claims history will also impact the rate.  If you have made multiple claims in recent years on any type of insurance, your rate will be higher. If you have a poor credit history, you will be deemed higher risk and charged accordingly, as research has shown that those with poor credit scores are more likely to make insurance claims.

Source:  insuranceproviders.com

First Time Driver: Best Car

What’s The Best Car For A First Time Driver?First Car

Parents who are car shopping for teen drivers know that deciding which factors to prioritize can be difficult. The goal is to make the most sensible choice.  You will need to consider three factors above all others:  safety, reliability, and true cost to own. Auto insurance is the first element of added cost because of the experience and risk factor. The second cost is related to maintenance and reliability.

Things To Consider

The size of your teen’s vehicle plays a significant role in its overall safety. Parents should avoid the smallest vehicle, since even a subcompact with the best crash test scores won’t provide as much collision protection as a large vehicle. Parents should avoid the largest vehicles as well, since these can be difficult to maneuver for new drivers. Midsize cars are best because of their ideal mix of crash protection and maneuverability. AAA recommends that parents avoid SUVs when shopping for teens, saying that the vehicles are “more prone to roll over in extreme driving conditions.” The newer models are safer than older ones because they offer stability control.

Four-cylinder engines offer adequate power, but not so much that they’re likely to tempt teen drivers into engaging in risky behavior. “Teens overestimate their skills and underestimate the risks of driving, so choose a vehicle accordingly. Driving behavior is the most crucial factor affecting your teen driver’s safety behind the wheel. Still, it’s clear a safe vehicle fosters a safer driving experience.

The 2009-2013 models listed below all offer top crash test scores and low TCO (True Cost to Own). And, all used models appear on CarMD’s Vehicle Health Index, which means they rank among the top 10 percent of all vehicles on the road when it comes to dependability.

  1. 2009 Honda Accord
  2. 2009 Toyota Camry
  3. 2010 Chevrolet Malibu
  4. 2010 Volkswagen Jetta
  5. 2011 Hyundai Sonata
  6. 2012 Honda Accord
  7. 2012 Hyundai Sonata
  8. 2012 Toyota Camry
  9. 2012 Volkswagen Jetta
  10. 2013 Chevrolet Malibu

Source http://www.edmunds.com/


MN Auto Insurance: Optional Coverage

Optional coverage applies in cases of damage to your vehicle.

Auto Insurance

If you are at fault, damage to your vehicle as a result of an accident with another vehicle or object is covered under the COLLISION portion of your policy.

If your vehicle is stolen or damaged by vandalism, fire, or impact with a deer, or falling objects, you are covered under the COMPREHENSIVE portion of your policy.
Recap Of Required Coverage

Required coverage applies when you and others covered by your policy are in an accident:

You collect on your PIP benefits, regardless of whether you or the other driver is at fault. This is the no-fault portion of your policy.

If the other driver is at fault, you make a claim against his or her LIABILITY when your PIP benefits run out. You also can make a claim for damage to your vehicle.

If the other driver’s liability is insufficient, you collect on your UNDER-INSURED benefits for PIP coverage.

If the other driver has no insurance, you collect on your UNINSURED benefits for PIP coverage.