If you’re a boat owner in Ontario, it’s important to have boat insurance. Your boat won’t be covered by your auto or home insurance policies, so you need to make sure you have the right policy in place. There are a few things you need to consider when buying boat insurance, including the fact that boat insurance costs vary based on multiple factors, and that not all agents offer boat insurance.
Here are the four things you need to keep in mind when shopping for boat insurance in Ontario.
Auto and Home Insurance Policies Are Separate
If you decide to buy a boat and need insurance, you might be wondering whether your auto or home insurance will cover it. The answer is no – boat insurance is a separate policy. This means that you’ll need to purchase boat insurance in addition to your auto and home insurance policies.
While your boat won’t be covered under existing home insurance or auto insurance policies, there are some similarities between auto and boat insurance that may help you during the shopping process:
– Both boat and auto insurance are mandatory in Ontario.
– You’re required to have insurance before you can register your boat.
– The government regulates the minimum amount of coverage you must have.
– Your boat must be insured at all times when it’s in operation.
However, there are also some key differences between boat and auto insurance:
– Boat insurance is not included in your home insurance policy like your auto insurance policy.
– The government does not regulate boat insurance rates like they do for auto insurance rates.
– There are no set boat insurance requirements, so you’ll need to choose the coverage that’s best for you based on your needs and budget.
There Are Multiple Factors That Affect Your Policy Cost
When you’re shopping for boat insurance, it’s important to keep in mind that multiple factors can affect your policy cost. These include the type of boat you have, the length of time you’ve been boat ownership, where you store your boat, and more.
The Type of Boat You Have Matters
One of the biggest factors that will affect your boat insurance rates is the type of boat you have. If you have a small fishing boat, for example, your rates will be much lower than if you have a large yacht. This is because smaller boats are less expensive to replace and repair, and they’re also more likely to be used for leisure activities like fishing or cruising, rather than high-risk activities like waterskiing or racing.
The Length of Time You’ve Had Boat Ownership
Another factor that can affect your boat insurance rates is the length of time you’ve had boat ownership. If you’ve just purchased a boat, you’ll likely pay more for insurance than if you’ve owned a boat for several years. This is because insurers view new boat owners as being more likely to file claims, due to their lack of experience.
Where You Store Your Boat
Finally, where you store your boat can also affect your boat insurance rates. If you live in an area that’s prone to hurricanes or floods, for example, your rates will be higher than if you live in a more stable region. This is because insurers view boats stored in high-risk areas as being more likely to be damaged by natural disasters.
You Need to Pick the Right Agent
When you’re shopping for boat insurance, it’s important to pick the right agent. Not all agents offer boat insurance, so you’ll need to find one that specializes in this type of coverage. A good boat insurance agent will be able to help you understand the different coverage options available and choose a policy that’s right for you.
They should also be able to make assessments for you to have all the preparation you need to get your policy. For example, you’ll need a complete assessment of the agreed vs market value of the boat.
This is done so that in the event your boat is destroyed, you’ll be able to receive enough money to replace it. If you have a loan on the boat, the agent can also help you understand how gap coverage works. This type of coverage will pay off your loan if your boat is wrecked and you owe more than what the boat is worth.
Your Answer to Boat Insurance in Ontario, Delivered with Northstar Marine Insurance!
Now that you know the four things to consider when buying boat insurance in Ontario, you can be sure that you’re getting the best policy for your needs.
At Northstar Marine Insurance, our boat insurance experts are here to guide you through the process and help you find the right coverage for your boat. Contact us today to get started, learn more, and get a quote on your boat insurance policy!