Boat insurance

[new boater]

I will be getting a new boat next week. In checking around for insurance quotes I have received a number of various prices ranging from $338 to $605.

The highest one being from State Farm where my cars and home are insured.

Has anyone had experiences they can share with claim payments from insurance companies? Are the internet companies reliable? Why is there such a large variable? The coverage requested was the same in each case.

[Paugus Bay Resident]

We have had State Farm for a number of years (cars, boat, etc.). Filed my first boat claim last year, and it was promptly handled, with no problems. One difference might be the lay up period (ours is from November to April).

Personally, I'm willing to spend a few extra bucks to have a local agent.

[Coastal Laker]

When shopping for boat insurance, one of the primary differences in premium cost is focused on whether or not that particular insurer uses the Agreed Value of your boat. The other method is actual cash value. There is a HUGE difference.

The agreed value pays the amount stated in the policy in case of a total loss. You decide how much insurance coverage to purchase. There is no depreciation or any discussion on how much the boat is actually worth at the time of the loss. Actual cash value is the opposite and does take into account depreciation. So, if the boat you bought for $20k five years ago goes up in flames and sinks, one policy will pay you $20k and the other $20k minus five years depreciation.

It's important to ask about this when you obtain quotes. The option you choose will be dependent on how much coverage you really want.

Good luck! :)