Is boat insurance the same as auto insurance?
If you’re like many Canadians, the sounds of spring signal the coming of boating season. Boating is a popular pastime for Canadians who live or visit lakes around the country. This year, you might be thinking about buying your own boat. If so, there are a few things you need to know, most specifically: is boat insurance the same as auto insurance? The answer is complicated.
What are the similarities between boat and auto insurance?
Boat insurance and auto insurance have some similarities – both require you to pay premiums and, in the event of an insurance claim, both require you to pay a deductible before you can get your money. In addition, both boat and auto insurance companies can offer discounts to drivers who take educational courses, including defensive driving for automobile drivers and boating courses for boat drivers.
In many ways, boat insurance and auto insurance are similar – they protect your moving vehicle from damage it may inflict on other moving vehicles, stationary objects or people. This is called liability coverage. Like auto insurance, if you want to insure your own vehicle from damage, you can purchase comprehensive coverage. Comprehensive coverage can protect you financially from theft, vandalism and fire.
Another similarity between these two types of insurance is that policies can vary from vehicle to vehicle (or boat to boat!) and from person to person. Because of this, it is recommended that you get a variety of insurance quotes from your broker to ensure you’re paying the best price for the coverage you need.
What are the differences between boat and auto insurance?
Boat insurance and auto insurance are different in many ways. Unlike auto insurance, boat insurance is often not mandatory; the rules vary from province to province, and from state to state. In some cases, you are only required to have liability insurance – that is, insurance that pays the victim’s expenses if you are at fault for an accident.
Another way boat insurance differs from auto insurance is that your boat insurance coverage area can be limited. Although you might want to sail your boat in another province, it might not be as simple as driving your boat to a new dock. Always be sure to double-check your boat insurance policy to make sure you’re covered.
Boat insurance policies frequently look cheaper than auto insurance policies, and there’s a good reason for that: boat insurance can include a lay-up period. This lay-up period usually runs from October to April and during that time, your boat is not insured for use. Once again, double-check your policy to see if you’re covered before you hit the lake.
The insurance world is often not as simple as it seems. Although boat and automobiles are fairly similar machines, insuring them is not as straightforwardly similar as you would think. If you’re looking at buying a boat this year to enjoy great Canadian summers on a lake, do a bit of homework first to decide whether or not boat ownership is for you – especially, if you think boat insurance is the same as auto insurance.