What is watercraft insurance?
A watercraft insurance policy, also known as boat insurance, is a packaged insurance policy providing coverages tailored to the needs of most watercraft owners. Watercraft insurance can help protect your watercraft, motor, trailer and/or covered accessories. The key coverages available for a watercraft policy are bodily injury and property damage liability, medical payments, uninsured & underinsured boaters, and physical damage (collision & comprehensive).
All watercraft policies will include bodily injury and property damage liability coverages for damages caused to others, but you have the option to purchase more coverages and decide how much of each you want to purchase. If you purchase physical damage coverages for your own boat, you can also add on additional coverages, called endorsements. Typical endorsements include coverages for emergency roadside and on-water assistance and more.
What does watercraft insurance cover?
Liability Coverages: Watercraft liability insurance is coverage that protects the insured against financial loss because of legal liability for watercraft-related injuries to others or damage to their property by a watercraft. For example, if you are at-fault in an accident with someone, liability coverage protects you from having to pay out of pocket for their medical expenses and boat repair (up to the limits of your policy). If you’re required to pay them more than your policy limits cover, anything above your policy limits would have to be paid out of pocket.
Bodily Injury Liability Coverage: This coverage can help cover someone else’s bodily injury damages, such as medical bills, if you are determined to be at-fault for the accident. Serious injuries can be very expensive and the injured party(ies) may also sue for rehabilitation, plastic surgery and loss of income.
Property Damage Liability Coverage: This coverage can help cover someone else’s property damages, such as boat repair, if you are determined to be at-fault for the accident. Keep in mind that Oklahoma lakes are home to many million-dollar yachts.
Medical Payments Coverage: This coverage can help pay for reasonable medical expenses resulting from a boating accident, regardless of who’s at fault.
Uninsured & Underinsured Boater Coverage: This coverage can help pay for bodily injury losses to you and your passengers caused by uninsured boaters, hit and run boaters or boaters with insufficient limits of liability to compensate for the injuries sustained. This coverage is highly recommended so boaters and their passengers don’t have to rely on healthcare insurance. Without this coverage in this situation, an injured person would have to take the at-fault boater to court in hopes of reimbursement for medical expenses.
Physical Damage Coverages: Physical damage coverages consist of collision and comprehensive coverages. Most people who carry these coverages refer to it as having “full coverage”, although this is a slang term and isn’t officially recognized by the insurance industry. This covers the insured boater’s own watercraft, motor, trailer and/or covered accessories, both on land and in the water, when involved in a covered accident or claim. If a vessel is financed or leased, the lien holder or lease company will require them to be carried and be listed as an additional insured on the insurance policy to protect its financial interests.
Collision Coverage: This coverage can help provide reimbursement for damage to the insured’s own watercraft, motor, trailer and/or covered accessories due to its colliding with another vessel or object, or the capsize of the watercraft.
Comprehensive Coverage: Also referred to as “other than collision” coverage, this coverage can help provide reimbursement for damage to the insured’s own watercraft, motor, trailer and/or covered accessories resulting from causes other than collision. It covers losses from causes such as fire, explosion, theft, windstorm, sinking and vandalism.
If a watercraft is older, has high-hours or not worth repairing after an accident, physical damage coverage may not be worth carrying. Keep in mind that without this coverage, any repairs to your watercraft may have to be paid out of pocket.
Endorsements:
Endorsements are optional coverages that can be added to an insurance policy. The following endorsements are available if physical damage coverage is carried. The most common watercraft policy endorsements can help pay for emergency roadside and on-water assistance; although there are many more endorsements available.
Emergency Roadside and On-Water Assistance Coverage: This coverage can help pay expenses associated with towing, tire service, battery service, fuel delivery, locksmith service, roadside repairs and trip interruption coverage. Note that mechanical breakdown of the watercraft is excluded. Each carrier offers different limits of coverage.
What is a deductible?
A deductible is the out of pocket expense that the insured policyholder is responsible for when paying for the repair of the boater’s own watercraft after a covered accident. All other expenses after the deductible would be paid by the insurance carrier. The deductible chosen depends on the insured’s budget. The higher the deductible, the lower the premium. The lower the deductible, the higher the premium.
Why do I need boat insurance in Oklahoma?
If you’re involved in a boating accident, you may have to pay expenses for repairs, medical bills, lost wages and more. Without the coverages you need, you could have to pay those bills out of your own pocket. Oklahoma is an “at-fault” state, which means that the boater deemed responsible for a crash is responsible for all damages. Watercraft insurance can help cover those expenses, which could protect you from financial ruin.
Who needs watercraft insurance in Oklahoma?
Even though the State of Oklahoma does not require boaters to carry watercraft insurance, it’s still a good idea to be covered. Besides the typical reasons to have insurance, such as protecting yourself and your passengers or others involved in an accident or covered peril, there are other situations that require you to carry insurance on your watercraft. If you finance your vessel or rent a slip to store your watercraft, you will likely be required to carry insurance.
What is the minimum boat insurance coverage required in Oklahoma?
There is no minimum amount of insurance required by the State of Oklahoma. However, if your watercraft is financed or leased, the lien holder or lease company will require you to carry physical damage coverage, known as collision and comprehensive coverages to protect its financial interest in your vessel. Marinas will also require slip renters to carry insurance and many will request to be added as an additional insured on the policy. The types of coverages and limits required depend on the lender and marina.
How can I get the lowest boat insurance premiums in Oklahoma?
There are many factors that determine an insured’s premium rate. Some factors are out of our control, such as our age, the economy, cost of building materials and all of the insurance claims being filed in the region. However, some of our life decisions can make an impact on our insurance premiums, such as our credit rating, driving record and recent insurance claims. Below are a list of several ways you can get the best rates in Oklahoma:
- Shopping multiple insurance carriers at once with an independent insurance agency like Scherer Insurance
- Having good credit history
- Having a good driving record
- Having a good boating record
- No recent insurance claims
- Having a college degree
- Being married
- 3+ years at your residence
- 3+ years at your workplace
- 3+ years with your current insurance carrier
- 3+ years with continuous insurance coverage
- Located in a low-crime ZIP code
- Not using your watercraft for business, delivery or transportation network
- Companion “bundling” policies such as your home, auto & watercraft policies with the same carrier
- Opting for a higher deductible
- Owning your home instead of financing or renting
- Owning your car instead of financing
- Owning your watercraft instead of financing
- Being the original owner
- Paying your premium in full
- Paying via EFT payments as opposed to mailing checks
- Retired or a senior citizen
- Taking safety courses
- Anti-theft devices
- Protective devices
- Declining collision or comprehensive coverage for older, high-hour watercraft that may not be worth repairing
- Storing your watercraft when not in use
- and many more
When you request a quote from Scherer Insurance, you can be confident that every possible credit and discount will be requested.
How can I buy boat insurance in Oklahoma?
There are two easy ways to get a quote or request more information for boat insurance in Oklahoma:
- Call/Text (405) 605-9891
- Email jp@schererinsurance.com