How Boating Accidents Affect Marine Insurance

How Boating Accidents Affect Marine Insurance

Following up on a previous blog about the emerging risks of recreational boating, it’s important to understand how boating accidents affect marine insurance, and encourage your clients to share it with their clients. Recreational marine boating has become commonplace, with over 3.6 billion boats sold in the United States in 2016, according to Statista. With new ownership comes risks, however. New boat owners can see how their insurance is affected by factors such as storage location, ownership experience, motor vehicle record, safety equipment and more. Over 87 million people participate in recreational boating activities, making it very important for them to be aware of the damages caused by boating accidents and how it can impact their marine insurance policy.

The following information details what can happen to a recreational marine policy if the insured suffers or causes a boating accident. Share it with your clients and encourage them to share it with their customers when discussing their recreational marine coverage, in order to ensure that they know the ins and outs of their policies.

If You Have a Good Driving Record, You’ll Be a Good Boater

Those with good driving records are often great drivers, while those who do not have a pristine record often get into more accidents and file more insurance claims, according to Insurance Directory Zone. Any insurance company is going to charge a customer more when they have a poor driving record because they’re likely to be more prone to accidents. With that being said, DUIs often come into play when it comes to recreational marine boating. A DUI is an insurance liability that can give insight to companies about how one is as a driver. A boating accident in which alcohol is a factor can cause rates to go way up, and with if the individual’s driving record before or after the accident is bad enough, they could even be dropped from their insurance completely.

Boat Sharing Might Not Be a Great Idea

Peer-to-peer boat sharing is pretty common nowadays, but what many boat owners don’t know is that when you rent out your boat, your personal insurance does not cover the renter. In addition, if there’s an accident on a boat while a non-owner is driving it, the owner won’t be covered at all. Having to pay out of pocket for your own boat can be costly, and boat owners should be made aware of these restrictions.

First Time Boaters Can Be a Liability

Insurance companies will often offer boating classes for first time boaters in an attempt to tackle the problem of new boater accidents, and these classes frequently include discounts on insurance policies. Getting into an accident as a first time boater without having taken the safety class can lead to an increase in insurance rates. The Coast Guard offers boating education courses, but they are also available online.

The total value of recreational boating topped at $3.6 billion in 2016. With more and more people participating in boating, it’s important to make sure that they are adequately covered.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ business and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.