One of the absolute joys that an individual can achieve is by owning his own boat. Cheap boat insurance reflects that the cost of boat insurance is relatively low, but at the same time provides substantial damage coverage against any mishaps that could damage the boat.
This coverage is comprehensive and covers the boat, associated equipment and additional equipment, outboard motors, boat trailer and individual belongings. Cheap boat insurance provides coverage for physical destruction on an actual cash value or an agreed upon basis of value. Together, boat insurance provides essential coverage for the boat, but there are major differences.
Actual cash value policies fund replacement costs, less depreciation at the time of loss. In the case of total damage, used boat pricing guidelines and additional funds are used to determine the approximate market price of the boat. Partial damage costs are calculated by taking the full cost of the restoration, minus the deductible.
Value policies with agreed amount means that the owner of the boat and the insurance company have decided on the cost of the boat, and in the aftermath of a total loss, the owner will be compensated with that amount.
Agreed value policies also replace old objects with new ones, excluding any depreciation. Most contracted value policies require the actual cash value of specific destroyed assets such as sails, protective covers, batteries, dinghies, trailers and obsolete outboard motors, lower power units or outdrives.
Cheap boat insurance is an affordable way to protect an asset that could have cost someone their life.