Boat Engine Insurance: Blown Motors Covered?

Boat insurance is a great way to protect your boat from unexpected damage, but does it cover a blown engine? A blown engine can happen when you’ve seemingly done nothing wrong, but they are usually caused by something. Your boat insurance may be able to help you out depending on the cause of the damage and the type of insurance policy you have purchased.

Collision coverage

While collision coverage focuses on accidents, it is important to understand what constitutes an accident in the context of boat insurance. A collision can refer to a variety of incidents, including not only collisions with other boats but also objects, whether above or below the water. For example, if your boat collides with a dock or a submerged rock, your collision coverage would come into effect. Additionally, capsizing is considered a form of collision, and your insurance would cover the resulting damage.

The scope of collision coverage can vary depending on the insurance provider and the specific policy. In some cases, it may be included as part of a comprehensive boat insurance plan, while other providers may offer it as a separate add-on to the policy. It is essential to carefully review the terms of your boat insurance to understand what is covered and what is not.

When it comes to engine damage, collision coverage can provide financial protection if the engine is damaged due to a collision. For instance, if your boat collides with another vessel or an object, and the engine is affected, the collision coverage may pay for the necessary repairs or replacement. However, it is important to note that engine damage due to negligence or lack of maintenance may not be covered. Regular maintenance, such as oil changes, is typically expected, and failure to perform such upkeep may result in insurance claims being denied.

In summary, collision coverage is a vital component of boat insurance, offering financial protection for accidents involving your vessel. It covers a range of collision scenarios, from collisions with other boats to objects in the water, and includes capsizing. By understanding the specifics of your collision coverage, you can ensure you have the necessary protection and take the appropriate steps to maintain your boat to avoid issues with insurance claims.

Comprehensive coverage

However, comprehensive coverage will not cover normal wear and tear or damage due to negligence. If your engine blows due to normal wear and tear or negligence, your boat insurance likely won't cover you. Engine damage from mold or insects also isn't typically covered.

Engine damage due to negligence

Boat insurance generally does not cover a blown engine if it is due to negligence or wear and tear. Negligence in this context refers to the failure to perform regular maintenance or expected upkeep, such as oil changes or winterizing the boat. For example, if the engine block cracks due to freezing during the winter because the owner did not properly prepare the boat for cold weather, the damage would be considered negligence and would not be covered.

However, if the blown engine is caused by a collision or severe weather, your boat insurance policy's comprehensive or collision coverage may cover the cost of repairs or replacement, minus your deductible. Comprehensive coverage typically includes damage due to vandalism, theft, severe weather, or other events outside of your control. Collision coverage, on the other hand, covers damage after a collision with another boat or object.

It's important to note that the specific coverage provided by boat insurance policies can vary, so it's always a good idea to carefully review your policy and consult with your insurance provider to understand what is and isn't covered in the event of a blown engine.

To avoid issues with your boat engine, it's recommended to take preventive measures such as ensuring the motor is at the correct height, maintaining the gear case, and managing your speed to avoid pushing the boat beyond its maximum capacity.

Wear and tear

However, it is important to note that some insurance providers may offer additional coverage for mechanical breakdowns, which can include engine failure due to wear and tear. This type of coverage is typically optional and may come with additional costs. It is designed to provide protection for major boat parts, such as the engine, transmission, and other components, in the event of a breakdown.

Additionally, some insurance policies may offer "agreed value" or "hull value" coverage, which can provide reimbursement for engine replacement without accounting for depreciation if the boat is relatively new. These policies often have cut-off periods, typically between 3 to 7 years, after which depreciation may be considered.

To ensure you have adequate coverage for wear and tear, it is important to carefully review your boat insurance policy and consider adding optional coverages if necessary. Regular maintenance and inspections are also crucial to prevent engine issues and prolong the life of your boat's engine.

Mechanical breakdown insurance

The cost of mechanical breakdown coverage varies depending on the provider and the age of the boat, with older boats generally costing more to insure. It is important to note that mechanical breakdown coverage is usually only applicable to outboard motors and may not be available for boats over a certain age. Additionally, there is typically a waiting period of around 30 days before the coverage takes effect, and a deductible will apply to each incident.

Boat insurance providers like Progressive offer mechanical breakdown coverage, known as Propulsion Plus®, which covers the repair or replacement of the lower unit of an outboard motor or the upper and lower units of an inboard/outboard motor in the event of a mechanical breakdown, even if it is caused by general wear and tear. This coverage starts at $38 per year and can provide peace of mind for boat owners concerned about unexpected repairs.

In summary, mechanical breakdown insurance for boats can provide valuable protection against unexpected repair costs for outboard or sterndrive motors. It covers specific components of the lower unit and, in some cases, the upper unit, providing coverage for sudden mechanical failures, including those due to wear and tear. Boat owners can purchase this optional coverage to supplement their standard boat insurance policy and protect themselves from the financial burden of unexpected breakdowns.

Frequently asked questions