Boat Engine Insurance: What's Covered And What's Not

Boat insurance is an important coverage option for boat owners, but it doesn't cover everything. While it provides financial protection in the event of accidents, there are instances where a boat insurance policy won't provide compensation. One common question among boat owners is whether their insurance will cover a blown engine. The answer depends on the specific circumstances. Generally, boat insurance does not cover engine issues arising from normal wear and tear or negligence. However, if the engine damage is a result of a covered incident, such as a collision or severe weather, then comprehensive or collision coverage under your policy may pay for repairs or replacement.

Comprehensive coverage

In addition to vandalism, comprehensive coverage also protects against theft. So, if your boat is stolen and the engine is damaged or removed, comprehensive coverage will come to your aid by covering the cost of repair or replacement. This coverage also extends to natural disasters, such as hurricanes or tornadoes, which can cause significant engine damage.

Another benefit of comprehensive coverage is its protection against fire damage. If a fire occurs on your boat and the engine is affected, comprehensive coverage will pay for the necessary repairs or replacement. This coverage also applies to other events outside your control, such as falling trees or objects, explosions, and lightning strikes.

It's worth noting that comprehensive coverage has a deductible, which is the amount you must pay out of pocket before the insurance provider covers the remaining costs. Before filing a claim, it's advisable to have the damage appraised to determine if the cost of repairs exceeds your deductible. Additionally, keep in mind that comprehensive coverage does not include maintenance or general wear and tear, so proper boat engine care and maintenance are still essential.

Collision coverage

The decision to add collision coverage to your policy will depend on the actual cash value of your boat, your personal preferences, and your financial situation. If your boat has a low cash value, it may not be worth adding collision coverage. However, if you cannot afford to pay for repairs or replacements out of pocket, then it may be valuable.

If you have a blown engine due to a collision with another boat or object, your collision coverage may pay to repair or replace it, minus your deductible. However, if the damage is due to negligence or normal wear and tear, your boat insurance policy, including collision coverage, will likely not cover you.

Bodily injury liability

Boat insurance provides bodily injury liability coverage, which helps pay for medical expenses and legal expenses if you injure someone while operating the boat. This includes medical bills, rehabilitation, hospital stays, and loss of income. It covers injuries to others as a result of an accident where you are at fault, including injuries to a water skier or swimmer near your boat.

Boat insurance is only required in Arkansas and Utah, but it is still important to have liability coverage to protect yourself financially in case of an accident. The cost of boat liability insurance coverage increases as the liability limit increases, but the difference between the minimum liability limit and $100,000 in coverage is often minimal.

Before purchasing boat insurance, it is important to understand what is covered and what is not. Basic boat insurance typically covers bodily injury liability, property damage liability, and medical payments coverage. Additionally, comprehensive coverage provides protection for damage due to lightning, windstorms, theft, vandalism, and more. Collision coverage, on the other hand, provides compensation if your boat collides with another boat or object.

Boat insurance generally does not cover normal wear and tear or negligence. However, if the engine blowout is due to a collision or an environmental accident, your comprehensive or collision coverage may cover the cost of repairs or replacement, minus your deductible.

Guest passenger liability

The importance of guest passenger liability is highlighted by the potential costs involved in boating accidents. Medical expenses, legal fees, and damages can quickly escalate, and without adequate coverage, boat owners may find themselves facing significant financial strain. In some cases, accidents can result in catastrophic losses, endangering not just the boat but also the owner's business, home, and other personal assets.

To ensure adequate protection, boat owners should carefully consider the level of liability coverage they require. This should be based on an assessment of their net worth, including savings, investments, equity in property, and other assets. By selecting an appropriate coverage limit, owners can safeguard their financial well-being while also providing peace of mind for themselves and their guests.

While boat insurance is not federally mandated, it is a valuable investment for boat owners. Guest passenger liability coverage is an essential component of this insurance, demonstrating a commitment to safety and financial responsibility. By understanding the risks involved and securing the right coverage, boat owners can confidently enjoy their time on the water while providing assurance to their guests.

Wear and tear

Boat insurance is designed to cover you in the event of a blown engine, but it does not cover all scenarios. If your boat's engine breaks down due to normal wear and tear or negligence, your insurance policy will not cover the cost of repairs or replacement. This is because boat insurance typically does not cover cosmetic or mechanical repairs resulting from regular use or a lack of maintenance.

However, if the engine blowout is due to a collision or an environmental incident, such as severe weather, your insurance policy's comprehensive or collision coverage may cover the cost of repairs or replacement, minus your deductible. Comprehensive coverage provides compensation for damage caused by lightning, windstorms, theft, vandalism, and other events outside your control. Collision coverage, on the other hand, covers damage to your boat resulting from a collision with another boat or object.

It is important to note that boat insurance policies can vary, and some insurers offer additional coverage options. For example, the "Propulsion Plus® mechanical breakdown coverage" offered by Progressive covers the lower unit of an outboard motor or the upper and lower units of an inboard/outboard motor, even if the breakdown is caused by general wear and tear. This add-on coverage starts at $38 per year and can provide peace of mind for boat owners concerned about engine issues.

Before filing an insurance claim for a blown engine, it is recommended to have the damage appraised to determine if the cost of repairs exceeds the cost of your deductible. If the cost of repairs is lower than your deductible, you may want to avoid filing a claim, as it could result in increased insurance rates. Additionally, taking preventative measures, such as proper maintenance and managing your speed, can help reduce the risk of engine issues and potential insurance claims.

In summary, while boat insurance typically does not cover wear and tear, there are situations where it can provide valuable protection for your engine. Understanding your policy's coverage, exclusions, and additional options can help ensure you are prepared for unexpected engine issues and make informed decisions when it comes to filing insurance claims.

Frequently asked questions