Download Consumer Guide to Insurance for Boats and Personal Watercraft PDF

TitleConsumer Guide to Insurance for Boats and Personal Watercraft
LanguageEnglish
File Size1.7 MB
Total Pages20
Document Text Contents
Page 1

A CONSUMER GUIDE TO

INSURANCE
FOR BOATS AND

PERSONAL WATERCRAFT

Page 10

6 Maryland Insurance Administration • 800-492-6116 • www.insurance.maryland.gov

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W H A T F A C T O R S A F F E C T
T H E P R E M I U M O F A

B O A T O W N E R S
I N S U R A N C E P O L I C Y ?

Premiums are based on many factors, but the more common ones are:

• Type and length of the boat;

• Motor type and horsepower;

• Age, value and condition of the boat;

• Usage – territory, length of time, etc .;

• Location where boat is moored/stored;

• Owner’s/insured’s driving record;

• Experience on the water;

• Claims history; and

• Deductible (amount of the loss for which you would be responsible) .

To lower your premium, you may want to:

• Increase the deductible, because the higher the deductible, the lower the
premium;

• take boating safety courses;

• maintain a good motor vehicle record;

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7Maryland Insurance Administration • 800-492-6116 • www.insurance.maryland.gov

A CONSUMER GUIDE TO INSUR ANCE FOR BOATS AND P ERSONA L WATERCR A F T

• make sure the vessel remains in good condition;

• remain claims free;

• carry Coast Guard-approved fire extinguishers and ship-to-shore radios
onboard;

• ask about multi-policy discounts if you have other policies with the
same insurer; and

• ask your agent or broker if they charge a fee for making a premium
payment with a credit card . They are permitted to charge the actual
expenses incurred when a premium payment is made using a credit card,
provided the amount of the fee is disclosed .

Many watercraft policies have restrictive provisions with respect to canceling the
policy and refunding unearned premiums . In
some instances, the premium may be fully earned at
inception . This means that if you cancel the policy,
no premium will be refunded . Other policies may
assess a “cancellation or short-rate penalty” if the
policy is cancelled mid-term, which will reduce the
amount of your premium refund . While this may
seem unfair, one of the reasons for these cancellation
penalties is to discourage boat owners from insuring
the watercraft only during the boating season, which, in Maryland, usually
spans the months of April through October . Underwriting, policy issuance and
cancellation expenses can be higher for boat insurance than, for example, auto
insurance . Therefore, it is important that you read the cancellation provision of
your policy to determine if any premium will be refunded in the event that you
cancel the policy . If you have any questions about the cancellation provisions or
any other provision of your policy, you should discuss your concerns with your
insurance agent or company .

Page 20

MIA-WC-1 (11/19)

This consumer guide should be used for educational purposes only . It is
not intended to provide legal advice or opinions regarding coverage under a
specific policy or contract; nor should it be construed as an endorsement of any
product, service, person, or organization mentioned in this guide .

This publication has been produced by the Maryland Insurance Administration
(MIA) to provide consumers with general information about insurance-related
issues and/or state programs and services . This publication may contain
copyrighted material which was used with permission of the copyright
owner . Publication herein does not authorize any use or appropriation of such
copyrighted material without consent of the owner .

All publications issued by the MIA are available free of charge on the MIA’s
website or by request . The publication may be reproduced in its entirety
without further permission of the MIA provided the text and format are not
altered or amended in any way, and no fee is assessed for the publication or
duplication thereof . The MIA’s name and contact information must remain
clearly visible, and no other name, including that of the company or agent
reproducing the publication, may appear anywhere in the reproduction . Partial
reproductions are not permitted without the prior written consent of the MIA .

People with disabilities may request this document in an
alternative format. Requests should be submitted in writing
to the Director of Communications at the address listed below.

200 St . Paul Place, Suite 2700
Baltimore, MD 21202

410-468-2000
800-492-6116

800-735-2258 TTY
www.insurance.maryland.gov

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