Breathe easy out on the water

Even if your boat isn’t expensive, carrying insurance can protect your finances if you’re responsible for an accident and have to pay for damage or medical bills for someone else. You should also consider the potential risks of fire, theft, and transporting your boat to and from the water.

If you purchased your boat using a loan, then your lender will usually require proof of insurance to close the loan. Many marinas also require boat insurance.

You may be able to get a discount if you’re a homeowner or experienced boater. It’s also possible to save on your overall insurance bill by bundling policies, like your homeowners, boat, and car insurance, with the same carrier. Your broker can identify the types of discounts you might qualify for.

Your insurance premiums are based on a number of factors, including how often you use your boat and where you store it when it’s not in use. In addition, fire and theft are year-round risks, even if your boat is in storage during the winter.

Insurance companies have different methods for assessing risk, but most of them consider these factors:

• Your boating record, age, and boating experience
• The type of boat you own
• How and where you use your boat
• Your location, usually based on your ZIP code

Insurance companies may also look at your credit history to assess your risk, but this is not allowed in some states.