Learn the key parts of a boat insurance policy.
Most coverages in a boat insurance policy come with a deductible, and all coverages are subject to limits. It's important to know what these terms mean and how they work if you need to file a claim.
Boat insurance deductibles
The amount of money you agree to pay to help repair or replace your boat if you have a claim covered by your policy is called a deductible.
For example, a boat operator damages her watercraft in an accident, and it will cost $5,000 to repair. If she has a $500 deductible, she will pay $500 and insurance will pay the remaining $4,500.
The bottom line is that choosing a higher deductible means you might pay less for your insurance premium now, but you could also end up paying more out of pocket later if you have an accident.
Boat insurance coverage limits
If you have an accident claim covered by your Allstate policy, Allstate will pay for damages up to that coverage's limit.
For example, a boat operator causes an accident in which someone is injured. The case goes to trial and there is a verdict of $57,000 to compensate the person who was injured. In this situation, if the boat operator has $50,000 per person limit for liability, he will pay $7,000. If he has $100,000 per person limit, he won't have to pay anything.
In summary, a higher limit means you might pay more for your insurance premium now, but it could help protect you from having to pay other people's damages later.