| Insurance can be very confusing for those of us | | | | state. |
| who are not in the insurance business. | | | | Full coverage insurance, on the other hand, will |
| Often, our insurance agents start babbling about | | | | cover you, your boat, your motor, your trailer, |
| liability, comprehensive coverage, third party | | | | and your passengers. |
| liability, and more - and we feel like they are | | | | It is often referred to as comprehensive |
| speaking a language we have never heard before. | | | | insurance, and it is available in different coverage |
| Well - in a sense they are. | | | | amounts, with different options that are available |
| Again, it is very confusing to those who are not in | | | | for the policy. This type of insurance will be |
| the insurance business. Unfortunately, if you are | | | | required by most lenders who finance boats, and |
| to get the coverage that you need, at a price | | | | most lenders will have their own requirements as |
| you can afford, you must start learning some of | | | | to which optional insurance is purchased. |
| the terminology. | | | | Essentially, what it comes down to is that third |
| For instance, many people do not understand | | | | party liability insurance coverage protects other |
| what the difference between third party liability | | | | people and their property in the event of an |
| insurance and full coverage insurance is. Third | | | | accident that is your fault, while full coverage |
| party liability coverage and full coverage insurance | | | | insurance protects you and your property - in the |
| are much the same, but in other ways they are | | | | same way that the third party insurance protects |
| uniquely different. Before you determine which | | | | others. |
| one you need, it is important to understand | | | | In fact, full coverage insurance will cover you |
| exactly what each type of coverage is. | | | | whether the accident was your fault, someone |
| Third Party Liability Coverage is essentially | | | | else's fault, or even no-fault. In most cases, it is in |
| coverage that protects you in the event of an | | | | your best interest to have both third party liability |
| accident that is your fault. | | | | insurance coverage - which is required - as well as |
| It generally covers other people and their | | | | full coverage insurance - which may be required if |
| property that is damaged in a covered accident. It | | | | you have financed your boat. |
| does not cover you, your passengers, your boat, | | | | Again, even if the boat has not been financed, |
| your motor, or your trailer. Furthermore, third | | | | you should strongly consider purchasing a full |
| party liability coverage only goes into effect if | | | | coverage or comprehensive policy. Many people |
| your boat is in an accident that occurred when | | | | even continue to carry the full coverage policy |
| the boat was being used in a private capacity, as | | | | long after the boat has been paid off. |
| opposed to a commercial capacity. | | | | Boat repairs are expensive, and anything can |
| Third party liability coverage is required by most | | | | happen. |
| states, and each state will have its own | | | | Most full coverage policies will cover you in the |
| requirements as to the minimum liability coverage | | | | event of mechanical failure, theft, and vandalism, |
| amounts that you have. | | | | as well as losses caused by storms, fires, |
| This type of insurance is generally required | | | | explosions, sinking, and much more. Talk with your |
| whether your boat is financed or not. Third party | | | | insurance agent to find out about the different |
| liability insurance coverage is often simply referred | | | | options available for full coverage policies, and |
| to as liability insurance, or in the case of boats, | | | | make sure that you get the coverage that you |
| watercraft liability insurance. Talk to your agent to | | | | need! |
| find out how much coverage is required in your | | | | CopyRight Ian D. Major 2005. |